Article 35 of the Saudi Registered Real Estate Mortgage Law
المادة 35 من نظام الرهن العقاري المسجل
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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.
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 35 explained in plain English
The possessor of a mortgaged property may be a person other than the debtor, and the property in their hands may then be sold because of a debt. This article gives the possessor the right to object to the debt for which the property was sold.
The scope of this objection is wide: the possessor may object with everything the debtor could have objected with.
But the article limits this right by a clear condition: that the debt was registered after the possessor's ownership document. What matters is the order of the two dates: the date the debt was registered and the date of the possessor's ownership document.
- Who holds the right: the possessor of the mortgaged property.
- Subject of the objection: the debt for which the property was sold.
- Means of objection: everything the debtor could have objected with.
- Condition: the debt was registered after the possessor's ownership document.
Article 36 completes the possessor's rights by allowing recourse by a warranty claim against the previous owner, and recourse against the debtor for what the possessor paid in excess of what is due from the possessor under the title to their right. Article 34 also provides that whatever part of the price of the mortgaged property exceeds the value of the registered debts belongs to the owner.
Because assessing the grounds of objection available requires studying the documents and registration dates, the possessor would do well to consult a lawyer specializing in real estate cases.
Practical example
A property in Riyadh in Fahd's hands was sold because of a debt registered after the date of his ownership document, and the debtor had grounds to object to the amount of that debt. Fahd, as possessor, may object to the debt on that ground and with everything the debtor could have objected with.
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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Frequently asked questions about Article 35 of the Saudi Registered Real Estate Mortgage Law
Is the possessor of a mortgaged property entitled to object to the debt?
Yes. The possessor may object to the debt for which the property was sold, if the debt was registered after the possessor's ownership document.
What can the possessor object with against the debt?
With everything the debtor could have objected with.
Does the possessor have this right in all cases?
No. Article 35 requires that the debt have been registered after the possessor's ownership document.
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 30
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.
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.
- 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.
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.