Article 42 of the Saudi Registered Real Estate Mortgage Law
المادة 42 من نظام الرهن العقاري المسجل
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.
Official text (Arabic)
This article has not been amended since the law was issued.
ينقضي الرهن المسجل بهلاك محلّه، وتراعى أحكام هلاك الرهن المنصوص عليها في هذا النظام.
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 42 explained in plain English
This article provides that the destruction of the subject of the mortgage, that is, the mortgaged property, is a ground for the extinction of a registered mortgage.
But the article does not stop at that rule; it provides that the provisions on destruction of the mortgage set out in this law are to be observed. This means the extinction of a mortgage by destruction is not read on its own, but is applied together with the provisions the law sets for destruction of the mortgage. The text of this article does not detail those provisions, so they are to be consulted where they appear in the law.
- Ground of extinction: destruction of the subject of the mortgage.
- Qualification: observing the provisions on destruction of the mortgage set out in the law.
This article falls among the grounds for the extinction of a registered mortgage: Article 41 provides for its extinction by the mortgagee's documented waiver, with the mortgage right capable of being waived while the debt remains. Article 43 allows the mortgagor and the possessor to 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.
Because the application of the provisions on destruction depends on the circumstances of each case, the mortgagor or mortgagee would do well to consult a lawyer specializing in real estate cases.
Practical example
A building in Abha is subject to a registered mortgage in favor of a financing provider, and the building is then destroyed. Under Article 42 the registered mortgage is extinguished by the destruction of its subject, but subject to the provisions on destruction of the mortgage set out in the law, which are to be consulted to learn what follows from the destruction.
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 42 of the Saudi Registered Real Estate Mortgage Law
What happens to the mortgage if the mortgaged property is destroyed?
A registered mortgage is extinguished by the destruction of its subject, subject to the provisions on destruction of the mortgage set out in the Registered Real Estate Mortgage Law.
Is Article 42 alone enough to know the rule on destruction of a mortgaged property?
No. It provides that the provisions on destruction of the mortgage set out in the law are to be observed, so they are to be consulted together with this article.
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 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 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.