Article 8 of the Saudi Registered Real Estate Mortgage Law
المادة 8 من نظام الرهن العقاري المسجل
The Article bars the mortgagee in a jointly owned mortgage from requesting division before his right of collection is established, except with the mortgagor's consent, and allows him afterwards to request a sale of the undivided share or division.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز للمرتهن في الرهن الشائع طلب القسمة قبل ثبوت حقه في الاستيفاء من العقار المرهون، إلا بموافقة الراهن. أما بعد ثبوت الحق في الاستيفاء من العقار المرهون، فللمرتهن الحق في طلب بيع الحصة المرهونة بحالتها المشاعة، وله أن يطلب القسمة ولو بغير رضا الراهن.
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 8 explained in plain English
This Article regulates the mortgagee's right to request division when the mortgage is on a commonly owned property, and distinguishes between two stages:
- Before the mortgagee's right of collection from the mortgaged property is established: he may not request division, except with the mortgagor's consent. As long as the debt has not reached the stage of collection, the decision on division remains with the mortgagor.
- After the right of collection is established: the mortgagee has two options: to request a sale of the mortgaged share in its undivided state, or to request division even without the mortgagor's consent.
In this way the Article balances two interests: the mortgagor's interest in not having the division of his property forced on him prematurely, and the mortgagee's interest in being able to collect his debt once his right to it is established.
This Article is linked to the seventh Article, which explains that a mortgage of an undivided share converts after division to the separated part in the mortgagor's share or to an amount equivalent to its value. The Article itself does not set the procedures for sale or division, and anyone facing a request for division or sale would do well to consult a lawyer specialized in real estate and real estate finance matters.
Practical example
Majed mortgaged his undivided share in a rest house in Riyadh to a creditor. The creditor wanted the rest house divided before the debt fell due and could not without Majed's consent. After the creditor's right of collection was established, he may request a sale of the share as it is, undivided, or request division even if Majed does not agree.
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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Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Mohammed bin Saleh Al-Qarawi Law and Notary Office, Riyadh
Frequently asked questions about Article 8 of the Saudi Registered Real Estate Mortgage Law
Can the mortgagee request division of a jointly owned property before the debt is due?
He may not request division before his right of collection from the mortgaged property is established, except with the mortgagor's consent.
What are the mortgagee's rights after his right of collection is established?
He may request a sale of the mortgaged share in its undivided state, and he may request division even without the mortgagor's consent.
More articles on Mortgaging Jointly Owned Property
- Article 6
The Article provides that a mortgage granted by all the owners of a commonly owned property remains effective, whether or not the property can be divided.
يبقى الرهن الصادر من جميع ملاّك العقار الشائع نافذًا، سواءً أكان العقار المرهون ممّا يمكن قسمته أم لا.
- Article 7
The Article sets what happens to a partner's mortgage of his undivided share after division: it converts to the separated part in his share or to an equivalent amount set by the judge, and his entitlements are applied to repay the debt.
1 - إذا رهن أحد الشركاء حصته المشاعة (جميعها أو بعضها)، فإن الرهن يتحول بعد القسمة إلى الجزء المفرز الذي وقع في نصيبه. 2 - إذا رهن أحد الشركاء حصته المشاعة (جمي
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.