In force
Saudi State Leasing of Real Estate Law
نظام استئجار الدولة للعقار
The law governing the State's leasing of real estate. The text is set out in 31 articles.
- Articles
- 31
- In force
- 31
- Amended
- 0
- Issued
- 28/12/1443 AH
Issued by: مرسوم ملكي رقم (م/136) وتاريخ 1443/12/28هـ · قرار مجلس الوزراء رقم (710) وتاريخ 1443/12/27هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse State Leasing of Real Estate Law by topic
Definitions and Objectives of the Law5 articlesRules for Government Leasing5 articlesConditions for the Leased Property1 articleLease Request and Offer Procedures3 articlesLease Term and Renewal3 articlesConcluding the Unified Lease Contract3 articlesTerminating the Contract and Vacating the Property3 articlesCompensating the Lessor for Damage5 articlesProperty Maintenance and Lessor Obligations2 articlesAuthority Oversight and Disputes3 articles
Articles of the Saudi State Leasing of Real Estate Law
- Article 1The article defines the basic terms of the State Leasing of Real Estate Law, such as the Authority, government bodies, the lessor, the portal and the unified lease contract.
- Article 2The article sets out the objectives of the State Leasing of Real Estate Law: regulating leasing according to need, rationalizing its costs, developing the use of leased real estate, strengthening governance and transparency, and unifying the supervising body.
- Article 3The article requires a government body, in coordination with the Authority, to prepare an annual plan for its real estate leasing before each fiscal year and publish it, without the publication creating any obligations.
- Article 4The article bars a government body from leasing real estate except in urgent need, after the Authority's approval and under the Law, with controls including no unused suitable real estate and the necessary financial appropriation.
- Article 5The article does not count housing a government body's personnel as a need permitting leasing, except for bodies whose laws provide for housing, and the rent may not exceed the personnel's cash housing allowance.
- Article 6The article sets the conditions for real estate a government body leases, including freedom from construction defects, violations and disputes, available licenses, and not belonging to personnel of the Authority or the body or their relatives.
- Article 7The article requires a government body wishing to lease real estate to submit its request to the Authority through the portal, unless technically impossible, under the conditions and procedures set by the Regulations.
- Article 8The article requires the Authority to study market prices and set a confidential maximum value, announce the leasing request on the portal within 15 days, and form committees in the government body to open and examine offers, including the financial controller.
- Article 9The article allows two or more government bodies to lease one piece of real estate, as the Regulations specify.
- Article 10The article sets the lease term at up to five years, extendable or renewable by up to five more with the Authority's approval, with possible terms of 25 years, or 50 years in special cases.
- Article 11The article regulates concluding the lease contract with the approval of the head of the government body under the unified lease contract, the body managing it and paying its value, giving the Authority a copy, and delegating the power to conclude.
- Article 12The article requires a government body that remains in the leased real estate after the contract ends, without extension, renewal or vacating, to pay the rent for the period of its stay, as the Regulations specify.
- Article 13The article requires the leasing government body to notify the lessor and the Authority of its wish not to extend or renew, and allows it to terminate the contract and vacate early in specified cases.
- Article 14The article relieves the government body from compensating the lessor for damage from construction defects, ordinary use and agreed modifications made before the contract, and makes it compensate damage from unordinary use.
- Article 15The property is handed over after vacating by a report recording its condition and any damage from abnormal use, signed by the agency's representative and the lessor; an objecting lessor may write a reservation in it.
- Article 16The agency must notify the lessor of a handover date at least 15 days away; if he does not attend, the keys are given to the Emirate, governorate or center and the agency's responsibility ends.
- Article 17A committee of the leasing agency surveys abnormal-use damage and assesses compensation within 15 days, and a joint committee with the Authority acts if compensation exceeds the set limit.
- Article 18The lessor loses the right to request compensation if he repairs, modifies or changes the property after vacating and before a committee under Article 17 surveys the damage and assesses its value.
- Article 19The agency must notify the lessor of the compensation amount within 15 days of its assessment; if he accepts, the agency head approves payment, and if he refuses, he may file a grievance with the agency.
- Article 20Government agencies lease property outside the Kingdom under rules issued by the Authority's board in coordination with relevant bodies, balancing the interest of buying versus leasing.
- Article 21A government agency may carry out works or finishing in the leased property during the lease after agreeing on them in writing with the lessor, under the regulations' rules.
- Article 22The lessor must repair construction defects at his own expense or the agency repairs them at his cost and deducts it from the rent; the agency must preserve and maintain the property under the unified contract.
- Article 23The procedures provided in the State Leasing of Real Estate Law and its regulations may be taken electronically, as set by the regulations.
- Article 24The Board of Grievances is competent to decide all disputes arising from applying the State Leasing of Real Estate Law, its regulations or the rules.
- Article 25The leasing government agency must submit a periodic report to the Authority on the condition of the leased property, as the regulations set.
- Article 26The Authority may make periodic visits to properties leased by government agencies to confirm their suitability, proper use and fitness for work needs, without prejudice to the powers of supervisory bodies.
- Article 27A government agency may, with the approval of the Authority and the Ministry of Finance, lease a property ending in ownership as the regulations set, without prejudice to the relevant laws.
- Article 28The Authority must prepare unified lease contract forms covering subletting and assignment, force majeure, equipping, maintenance and guarding, and the right to terminate at the end of each year or on abolition of the agency.
- Article 29The Authority's board must issue the implementing regulations within 180 days of the law's publication, to take effect from the date the law comes into force.
- Article 30The law replaces the Law on the State Leasing and Vacating of Real Estate issued by Royal Decree No. (M/61) dated 18/9/1427 AH, and repeals conflicting provisions.
- Article 31The law takes effect 180 days after its publication in the Official Gazette.