Article 30 of the Saudi Registered Real Estate Mortgage Law
المادة 30 من نظام الرهن العقاري المسجل
The article gives the possessor of a mortgaged property the right to clear it of every registered mortgage, which remains until the property is sold, and to have recourse against the debtor for what was paid.
Official text (Arabic)
This article has not been amended since the law was issued.
1 - لحائز العقار المرهون حق تطهيره من كل رهن مسجل.
2 - يكون هذا الحق قائمًا للحائز حتى إجراء بيع العقار المرهون، وله أن يعود بما دفعه على المدين.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 30 explained in plain English
This article gives the possessor of a mortgaged property the right to clear the property, that is, to free it of every registered mortgage on it. By the article's text this right belongs to the possessor alone.
The article sets two provisions for this right:
- Its duration: the right to clear remains with the possessor until the mortgaged property is sold. Once the sale has taken place, the possessor loses this right.
- Recourse against the debtor: the possessor may have recourse against the debtor for what the possessor paid.
This article itself does not explain how clearing is carried out or the amount the possessor pays to complete it; these details do not appear in its text.
This article is connected to Article 29, which allows the possessor, after being notified, to pay the mortgage debt and expenses, have recourse against the debtor and step into the creditor's place. It is also connected to Article 31, which provides that the compulsory expropriation and sale of the mortgaged property on non-payment of the debt are carried out in accordance with the Enforcement Law; the right to clear ends when the sale is carried out.
Because this right is time-limited and ends with the sale, anyone who is a possessor of a mortgaged property and wants to keep it would do well to act early and consult a lawyer specializing in real estate and real estate finance cases.
Practical example
Yousef bought land in Jeddah on which there are two registered mortgages in favor of the seller's creditors. Before the land is sold in enforcement, Yousef is entitled to clear it of every registered mortgage on it, and then have recourse against the debtor seller for what he paid.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Mohammed bin Saleh Al-Qarawi Law and Notary Office, Riyadh
Frequently asked questions about Article 30 of the Saudi Registered Real Estate Mortgage Law
What does clearing a mortgaged property mean?
It is the possessor's right to free the property of every registered mortgage on it.
Until when does the right to clear remain?
It remains with the possessor until the mortgaged property is sold.
Does the possessor get back what was paid to clear the property?
Yes. The possessor may have recourse against the debtor for what was paid.
More articles on Possessor of the Mortgaged Property and Clearing
- Article 26
The article gives the mortgagee the right to follow the mortgaged property into the hands of any possessor, to recover its right from it when payment falls due, according to its rank.
للمرتهن حق تتبع العقار المرهون في يد أي حائز له لاستيفاء حقه منه عند حلول الوفاء به وفقًا لمرتبته.
- Article 27
The article defines the possessor of a mortgaged property as anyone to whom, after the mortgage, ownership or another mortgageable right in rem in the property has passed, without personal liability for the secured debt.
يعد حائزًا للعقار المرهون كل من انتقلت إليه بعد الرهن - بأي سبب من الأسباب - ملكية هذا العقار، أو أي حق عينيٍّ آخر عليه قابل للرهن دون أن يكون مسؤولاً مسؤولية ش
- Article 29
The article lets the possessor of a mortgaged property, after being notified, pay the mortgage debt and expenses and then have recourse against the debtor, stepping into the creditor's rights.
لحائز العقار المرهون أن يؤدي دين الرهن والنفقات بعد إنذاره، على أن يرجع بما أداه على المدين، وله أن يحلّ محل الدائن الذي استوفى دينه فيما له من حقوق.
- Article 32
The article lets the possessor of a mortgaged property enter its auction; if the possessor wins and pays the price, the possessor is regarded as owner under the original ownership document, and the property is cleared of every registered right.
يجوز لحائز العقار المرهون أن يدخل في إجراءات بيعه في المزاد، فإذا رسا المزاد عليه وأدى الثمن، عُدَّ مالكًا للعقار بمقتضى وثيقة ملكيته الأصلية، ويتطهر العقار الم
- Article 33
If the auction of a mortgaged property is awarded to someone other than its possessor, that person acquires ownership under the decision awarding the auction and receives the right from the possessor, whether or not the possessor entered the auction.
إذا رسا مزاد بيع العقار المرهون على غير حائزه، فإنه يكسب ملكيته بمقتضى قرار رسوّ المزاد عليه، ويتلقى حقه من الحائز، سواء أدخل الحائز في المزاد أم لم يدخل.
- Article 35
The possessor of a mortgaged property may object to the debt for which the property was sold, with everything the debtor could have objected with, if the debt was registered after the possessor's ownership document.
لحائز العقار المرهون أن يعترض على الدين الذي بيع العقار بسببه بجميع ما كان يجوز للمدين أن يعترض به إذا كان الدين مسجلاً بعد وثيقة ملكية الحائز.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.