Article 37 of the Saudi Registered Real Estate Mortgage Law
المادة 37 من نظام الرهن العقاري المسجل
The mortgage follows the debt, so it is released when the whole secured debt is extinguished and returns if the debt returns, without prejudice to rights acquired in good faith by others in between.
Official text (Arabic)
This article has not been amended since the law was issued.
1 - الرهن تابع للدين، فينفكّ الرهن بانقضاء جميع الدين الموثق به.
2 - إذا كان الدين قد انقضى ثم عاد لأي سبب موجب لبقائه، رجع الرهن كما كان برجوع الدين، دون مساس بالحقوق المكتسبة للآخـرين حسني النية، وذلك خلال المدة ما بين انقضاء الدين وعودته.
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 37 explained in plain English
This article establishes a basic principle: the mortgage follows the debt. It exists to secure the debt and stands or falls with it.
Release of the mortgage (paragraph 1): the mortgage is released when the whole debt it secures is extinguished. The article ties release to the extinction of the entire debt, not of part of it.
Return of the mortgage (paragraph 2): if the debt was extinguished and then returned for any reason that requires its continuing, the mortgage returns as it was with the return of the debt. But this return is qualified: it is without prejudice to rights acquired by others in good faith during the period between the extinction of the debt and its return.
- The whole debt is extinguished: the mortgage is released.
- The debt returns for a reason that requires its continuing: the mortgage returns as it was.
- Rights acquired in good faith in the period between extinction and return: not affected.
This article is connected to Article 38, which deals with paying the debt, or part of it, before its term and deducting a part of it in accordance with the early repayment standards in the Finance Companies Control Law.
Anyone who wants to verify that the mortgage on their property has been released after paying off the debt, or who faces the return of a mortgage that was previously released, would do well to consult a lawyer specializing in real estate cases.
Practical example
Noura paid off all of the financing secured by a registered mortgage on her house in Riyadh, so the mortgage was released when the whole debt was extinguished. If the debt later returned for a reason that requires its continuing, the mortgage would return as it was, without prejudice to the rights of anyone who acquired a right in the house in good faith during the period between the extinction of the debt and its return.
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 37 of the Saudi Registered Real Estate Mortgage Law
When is a real estate mortgage released?
The mortgage is released when the whole debt it secures is extinguished, because the mortgage follows the debt.
Is the mortgage released if I repay part of the debt?
Article 37 ties release of the mortgage to the extinction of the whole debt it secures.
Does the mortgage return if the debt returns?
Yes. If the debt returns for any reason that requires its continuing, the mortgage returns as it was, without prejudice to rights acquired by others in good faith between the extinction of the debt and its return.
More articles on Ending and Releasing the Mortgage
- Article 38
On early repayment of the debt or part of it, a part of the debt is deducted under the early repayment standards in the Finance Companies Control Law; if the court sells the property before the term ends, it pays the due installments to the creditor and deposits the rest in its bank account.
1 - إذا سدد الدين أو بعضه قبل أجله باتفاق المتعاقدين، أو بحكم العقد، أو النظام، أو القضاء؛ فيحط جزء من الدين طبقًا لمعايير السداد المبكر المنصوص عليها في نظام م
- Article 39
A registered mortgage is extinguished by a compulsory sale of the mortgaged property under the law and payment of the price to the mortgagee creditors according to their ranks, or its deposit in a bank account of the court.
ينقضي الرهن المسجل ببيع العـقار المرهون بيعًا جبريًا وفقًا للنظام، ودفع ثمنه إلى الدائنين المرتهنين وفقًا لمرتبة كل منهم، أو إيداعه في حساب بنكي للمحكمة.
- Article 40
A registered mortgage is extinguished by merger of rights, when the right of mortgage and the right of ownership come together in one person, and returns if the cause of the merger ceases retroactively.
ينقضي الرهن المسجل باتحاد الذمة، باجتماع حق الرهن مع حق الملكية في يد شخص واحد، سواءً أكان بانتقال ملكية العقار المرهون إلى المرتهن، أم بانتقال حق المرهون إلى ا
- Article 41
A registered mortgage is extinguished when the mortgagee waives it by a documented waiver, and the mortgagee may waive the mortgage right while the debt remains.
ينقضي الرهن المسجل إذا تنازل المرتهن عنه تنازلاً موثقًا، وله أن يتنازل عن حق الرهن مع بقاء الدين.
- Article 42
A registered mortgage is extinguished by the destruction of its subject, subject to the provisions on destruction of the mortgage set out in the law.
ينقضي الرهن المسجل بهلاك محلّه، وتراعى أحكام هلاك الرهن المنصوص عليها في هذا النظام.
- Article 43
The mortgagor and the possessor may request release of the mortgage after the period for hearing a claim on the debt secured by the mortgage, set out in other laws, has elapsed.
للراهن والحائز طلب فك الرهن بعد انقضاء مدة سماع دعوى الدين الموثق به الرهن المنصوص عليها في الأنظمة الأخرى.
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.