Article 9 of the Saudi Registered Real Estate Mortgage Law
المادة 9 من نظام الرهن العقاري المسجل
The article sets out what a mortgage can secure: an established debt, a specified promised debt, a specific item guaranteed by the debtor, or a debt that will become due. The contract must state the amount of the debt or its maximum limit.
Official text (Arabic)
This article has not been amended since the law was issued.
يشترط في مقابل الرهن أن يكون دينًا، ثابتًا في الذمة، أو موعودًا به محددًا، أو عينًا من الأعيان المضمونة على المدين، أو دينًا مآله إلى الوجوب، كدين معلق على شرط أو دين مستقبلي أو دين احتمالي، على أن يحدد في عقد الرهن مقدار الدين المضمون، أو الحد الأقصى الذي ينتهي إليه هذا 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 9 explained in plain English
A mortgage secures a right, so this article sets out what a property may be mortgaged to secure. What the mortgage secures must be one of the following:
- An established debt owed by the debtor, such as an existing loan.
- A specified promised debt.
- A specific item that is guaranteed by the debtor.
- A debt that will become due, for which the article gives examples: a debt subject to a condition, a future debt, and a contingent debt.
In all of these cases the article sets one essential requirement: the mortgage contract must state the amount of the secured debt, or the maximum limit the debt will reach. The secured debt may not be left open-ended with no limit.
The point of this requirement is that the mortgagor knows how far the property is committed, and third parties know how much burden the property carries. Article 10 then provides that every part of the property secures the whole debt unless otherwise agreed, while Article 8 deals with the mortgagee's right to request partition of jointly owned mortgaged property.
Anyone signing a mortgage to secure phased or future financing should make sure the contract states the amount or the maximum limit, and may consult a lawyer specializing in real estate and real estate finance cases.
Practical example
A contracting company in Jeddah agreed with a financing provider on a credit line paid out in installments, and mortgaged its land as security. The mortgage is valid because the debt is a future debt that will become due, provided the mortgage contract states the maximum amount of the secured financing.
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 9 of the Saudi Registered Real Estate Mortgage Law
Can a mortgage secure a debt that is not yet due?
Yes. What the mortgage secures may be a debt that will become due, such as a debt subject to a condition, a future debt, or a contingent debt.
Must the debt amount be stated in the mortgage contract?
The mortgage contract must state the amount of the secured debt or the maximum limit it will reach.
Is a mortgage valid to secure a specific item rather than a monetary debt?
Yes. The article lists, among the things a mortgage may secure, a specific item guaranteed by the debtor.
More articles on Debt Secured by the Mortgage
- Article 10
The article sets the principle that a mortgage is indivisible: every part of the property secures the whole debt, and every part of the debt is secured by the whole property, unless otherwise agreed.
كل جزء من العقار المرهون ضامن لكل الدين، وكل جزء من الدين مضمون بالعقار المرهون، ما لم يتفق على غير ذلك.
- Article 17
The article lets the mortgagee transfer its right to collect the debt, together with the mortgage that secures it, to another person, subject to the rules on dealing in debts, unless otherwise agreed.
مع مراعاة أحكام التصرف في الديون، يجوز للمرتهن نقل حقه في استيفاء الدين مع الرهن الضامن له لغيره، ما لم يتفق على خلاف ذلك.
- Article 22
The article confines the effect of the mortgage to the debt specified in the mortgage document, so it does not extend to other debts not mentioned in it.
يقتصر أثر الرهن على الدين المحدّد في وثيقة الرهن.
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.