Article 44 of the Saudi Registered Real Estate Mortgage Law
المادة 44 من نظام الرهن العقاري المسجل
A mortgage is not void on the death of the mortgagor or the mortgagee or on loss of capacity: the heir takes the place of the deceased, and the guardian acts for the one who lost capacity.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يبطل الرهن بموت الراهن، أو المرتهن، أو بفقدان الأهلية، فإن مات أي منهما قام وارثه مقامه، وإن فقد أهليته ناب عنه وليه.
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 44 explained in plain English
This article protects the continuation of the mortgage despite what may happen to its parties, providing that the mortgage is not void on any of the following:
- Death of the mortgagor.
- Death of the mortgagee.
- Loss of capacity.
The text does not leave the mortgage without someone to represent it, but states who takes the place of the affected party:
- If the mortgagor or the mortgagee dies, the heir takes the person's place.
- If the person loses capacity, the person's guardian acts on the person's behalf.
The mortgage thus remains in force: the heir of the mortgagee takes the mortgagee's place in the mortgage right, the heir of the mortgagor takes the mortgagor's place in the mortgagor's position, and the guardian acts for whichever of them has lost capacity.
This article is connected to Article 43, which 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, and to Article 45, which assigns the settlement of disputes arising from application of the provisions of the law to the competent court.
Anyone who has inherited a mortgaged property or a right in a mortgage, or who serves as guardian of one of its parties, would do well to consult a lawyer specializing in real estate or personal status cases.
Practical example
Reem's father died after mortgaging his house in Riyadh with a registered mortgage in favor of a bank. The mortgage is not void on his death, and his heirs, including Reem, take his place, so the house remains mortgaged to secure the debt.
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 44 of the Saudi Registered Real Estate Mortgage Law
Does a real estate mortgage end on the death of the mortgagor?
No. The mortgage is not void on the death of the mortgagor, and the heir takes the mortgagor's place.
What happens to the mortgage if the mortgagee dies?
The mortgage is not void on the death of the mortgagee, and the heir takes the mortgagee's place.
Who acts for the mortgagor or mortgagee if they lose capacity?
Their guardian acts on their behalf, and the mortgage is not void on loss of capacity.
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 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.
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.