Article 36 of the Saudi Registered Real Estate Mortgage Law
المادة 36 من نظام الرهن العقاري المسجل
The article lets the possessor bring a warranty claim against the previous owner and have recourse against the debtor for what was paid in excess of what is due from the possessor, stepping into the rights of the creditors who were paid.
Official text (Arabic)
This article has not been amended since the law was issued.
1 - للحائز الرجوع بدعوى الضمان على المالك السابق في الحدود التي يرجع بها الخلف على من تلقّى منه الملكية معاوضة أو تبرعًا.
2 - للحائز الرجوع على المدين بما دفعه زيادة على ما هو مستحق في ذمته بمقتضى سند حقه أيًّا كان السبب في دفـع هذه الزيادة، ويحل محلّ الدائنين الذين وفّاهم حقوقهم فيما لهم من حقوق قبل المدين، بما في ذلك ما لهم من تأمينات قدّمها المدين، دون التأمينات التي قدّمها شخص آخر.
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 36 explained in plain English
This article sets out two ways in which the possessor of a mortgaged property may have recourse:
First: recourse against the previous owner (paragraph 1)
The possessor may have recourse by a warranty claim against the previous owner, within the limits within which a successor has recourse against the person from whom the successor received ownership, whether the possessor received it for consideration (such as purchase) or gratuitously (such as a gift). The article does not set special limits for this recourse but ties it to the limits of a successor's recourse against the person from whom the successor received ownership.
Second: recourse against the debtor (paragraph 2)
- The possessor has recourse against the debtor for what the possessor paid in excess of what is due from the possessor under the title to their right, whatever the reason for paying this excess.
- The possessor steps into the place of the creditors whom the possessor paid, in respect of the rights they had against the debtor.
- This substitution includes the securities provided by the debtor, but not securities provided by another person.
This article complements Article 35, which allows the possessor to 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.
To assess the limits of recourse in a particular case and what the substitution of rights includes, the possessor would do well to consult a lawyer specializing in real estate or civil cases.
Practical example
Majed bought a mortgaged apartment in Jeddah, and then paid the mortgagee creditors sums exceeding what was due from him under the title to his right. Majed may have recourse against the debtor for this excess, and steps into the place of the creditors he paid in respect of their rights against the debtor, including the securities provided by the debtor, but not securities provided by another person.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCivil Litigation & Compensation lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Civil Litigation & Compensation lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Abdullah Al-Saleh Law Office for Law and Legal Consultancy
Frequently asked questions about Article 36 of the Saudi Registered Real Estate Mortgage Law
Can the possessor of a mortgaged property have recourse against the person who sold it?
The possessor may have recourse by a warranty claim against the previous owner, within the limits within which a successor has recourse against the person from whom the successor received ownership, for consideration or gratuitously.
If the possessor paid more than was due from them, may the possessor have recourse against the debtor?
Yes. The possessor has recourse against the debtor for what the possessor paid in excess of what is due from the possessor under the title to their right, whatever the reason for paying the excess.
Does the possessor benefit from the securities of the creditor who was paid?
The possessor steps into the place of the creditors who were paid in respect of their rights against the debtor, including the securities provided by the debtor, but not securities provided by another person.
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.