Article 41 of the Saudi Registered Real Estate Mortgage Law
المادة 41 من نظام الرهن العقاري المسجل
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.
Official text (Arabic)
This article has not been amended since the law was issued.
ينقضي الرهن المسجل إذا تنازل المرتهن عنه تنازلاً موثقًا، وله أن يتنازل عن حق الرهن مع بقاء الدين.
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 41 explained in plain English
This article states another ground for the extinction of a registered mortgage: the mortgagee's waiver of it.
- Condition of the waiver: it must be a documented waiver; the article ties extinction of a registered mortgage to a documented waiver.
- Separation of the mortgage from the debt: the mortgagee may waive the mortgage right while the debt remains. Waiving the mortgage does not necessarily mean dropping the debt; the debt may remain owed by the debtor but is no longer secured by this mortgage once it is extinguished.
The article does not set out the procedures for documentation or the body before which it is done; its text is limited to requiring the waiver to be documented.
This article sits alongside Article 40, which provides for the extinction of a registered mortgage by merger of rights, that is, when the right of mortgage and the right of ownership come together in one person, and Article 42, which provides for its extinction by the destruction of its subject, subject to the provisions on destruction of the mortgage set out in the law.
Before waiving a mortgage or accepting a waiver of one, the person concerned would do well to consult a lawyer specializing in real estate or banking and finance cases, to be sure of the effect of the waiver on the debt and on the property.
Practical example
A finance company in Jeddah has a debt from a customer secured by a registered mortgage on his apartment, and agrees with him to release the apartment from the mortgage while he continues to pay the installments. The company documents its waiver of the mortgage, so the registered mortgage is extinguished and the debt remains owed by the customer.
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 41 of the Saudi Registered Real Estate Mortgage Law
Can the mortgagee waive the mortgage before the debt is paid?
Yes. The mortgagee may waive the mortgage right while the debt remains.
Is any waiver enough to extinguish a registered mortgage?
Article 41 requires that the mortgagee's waiver of the mortgage be a documented waiver.
Is the debt dropped if the mortgagee waives the mortgage?
Not necessarily. The article allows the mortgage right to be waived while the debt remains.
More articles on Ending and Releasing the Mortgage
- Article 37
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.
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
- 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 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.