Article 5 of the Saudi Registered Real Estate Mortgage Law
المادة 5 من نظام الرهن العقاري المسجل
The Article provides that the mortgage covers the mortgaged property's appurtenances, namely buildings, plantings, what is prepared to serve it and what is added after the contract, unless otherwise agreed and without prejudice to third parties' rights.
Official text (Arabic)
This article has not been amended since the law was issued.
يشمل الرهن ملحقات العقار المرهون من أبنية، وغراس، وما أعد لخدمته، وما يستحدث عليه من إنشاءات أو تحسينات بعد العقد، ما لم يتفق على غير ذلك، دون إخلال بحقوق الغير المتصلة بهذه الملحقات.
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 5 explained in plain English
This Article answers a practical question: is the mortgage limited to the land or building as it was at the time of the contract, or does it extend to what is attached to it? The rule is that the mortgage covers the appurtenances of the mortgaged property, and the Article mentions among them:
- Buildings on the property.
- Plantings, meaning the trees and crops planted in it.
- What is prepared to serve the property.
- What is added to the property of constructions or improvements after the contract.
This rule is not absolute, but is subject to two limits:
- It applies unless the parties agree otherwise; the mortgage contract may exclude some appurtenances.
- It is without prejudice to the rights of third parties connected with these appurtenances; if someone else has a right in some of them, his right remains preserved.
This Article complements the fourth Article, which requires the mortgaged property to be specific and known. Before building on a mortgaged property or agreeing to exclude some of its appurtenances, it may be useful to consult a lawyer specialized in real estate and real estate finance matters.
Practical example
Fahd mortgaged agricultural land in Qassim to a financing company, and then built a warehouse on it and planted palms in it after the contract. If the mortgage contract contains no different agreement, the mortgage also covers the warehouse and the palms, with third parties' rights connected with them remaining preserved.
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 5 of the Saudi Registered Real Estate Mortgage Law
If I build on mortgaged land, does the building become part of the mortgage?
Yes. The mortgage covers what is added to the property of constructions or improvements after the contract, unless otherwise agreed.
Can some appurtenances be excluded from the mortgage?
Yes, because the Article applies the mortgage's coverage of appurtenances unless otherwise agreed.
What about other people's rights in these appurtenances?
The Article provides that the mortgage's coverage of appurtenances is without prejudice to the rights of third parties connected with them.
More articles on Mortgagor and Mortgaged Property Conditions
- Article 2
The Article requires the mortgagor to own the property and have capacity to dispose of it, and permits the mortgagor to be the debtor or a real surety who mortgages his property for the debtor's benefit.
1- يجب أن يكون الراهن مالكاً للعقار المرهون، وأهلاً للتصرف فيه. 2- يجوز أن يكون الراهن المدين نفسه، أو كفيلاً عينيًّا يقدّم عقارًا يرهنه لمصلحة المدين ولو بغير
- Article 3
The Article makes a non-owner's mortgage suspended pending a documented ratification by the owner, with the mortgage starting from that date; absent ratification, it takes effect only once the mortgagor acquires the property.
إذا كان الراهن غير مالك للعقار المرهون، كان رهنه موقوفًا على إجازة موثقة من المالك، ويبدأ الرهن من تاريخ الإجازة. فإذا لم تصدر هذه الإجازة، فإن حق الرهن لا يترت
- Article 4
The Article requires the mortgaged property to be specific, existing or likely to exist, known and stated in the contract and saleable at auction, and permits mortgaging the property's usufruct separately from the property.
1 - يجب أن يكون العقار المرهون معينًا موجودًا، أو محتمل الوجود مما يصح بيعه. 2 - يجب أن يكون العقار المرهون معلومًا علمًا نافيًا للجهالة مبيّنًا في عقد الرهن نف
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.