Article 11 of the Saudi State Leasing of Real Estate Law
المادة 11 من نظام استئجار الدولة للعقار
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يُبرَم عقد الاستئجار بعد استكمال الإجراءات المنصوص عليها في النظام واللائحة بموافقة رئيس الجهة الحكومية، وفقاً لعقد الاستئجار الموحد.
2- تتولى الجهة الحكومية إدارة عقد الاستئجار، وسداد قيمته، وذلك وفقاً لما تحدده اللائحة.
3- تزود الجهة الحكومية الهيئة بنسخة من عقد الاستئجار وما يطرأ عليه من تعديل أو إنهاء، وفقاً لأحكام النظام واللائحة.
4- لرئيس الجهة الحكومية تفويض صلاحيته في إبرام عقد الاستئجار لأي من منسوبي الجهة وفقاً لما تحدده اللائحة.
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 11 explained in plain English
This article moves to the stage of signing the contract and what follows, in four paragraphs:
- Concluding: the contract is concluded after completing the procedures set out in the Law and the Regulations, with the approval of the head of the government body (its chief official), and in accordance with the unified lease contract approved by the Authority.
- Management and payment: the government body manages the contract and pays its value as the Regulations specify. The lessor therefore deals with the leasing body, not the Authority, over the rent.
- Informing the Authority: the body gives the Authority a copy of the contract and of any amendment or termination of it, in accordance with the provisions of the Law and the Regulations.
- Delegation: the head of the body may delegate his power to conclude the contract to any of the body's personnel as the Regulations specify.
The importance of the article for the lessor is that the contract is not in a form the parties negotiate with complete freedom, but follows the unified form, and the person who signs is the head of the body or whoever he has delegated. Article 10 sets the term of this contract, and Article 12 deals with the case of the body remaining in the real estate after the term ends.
If you have a practical matter relating to leasing real estate to a government body, it would be best to consult a lawyer specializing in real estate cases or administrative cases.
Practical example
After Noura's offer to lease her building in Buraidah to a government body was accepted, the contract was signed by a department manager the head of the body had delegated, on the unified contract form. The body then sent a copy of the contract to the Authority, and the body became responsible for managing the contract and paying the rent to Noura.
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 11 of the Saudi State Leasing of Real Estate Law
Who signs the government body's lease contract?
It is concluded with the approval of the head of the government body, who may delegate his power to any of the body's personnel as the Regulations specify.
Who pays the rent to the lessor: the Authority or the leasing body?
The government body manages the contract and pays its value as the Regulations specify.
Is the government lease contract written in any form?
No. It is concluded in accordance with the unified lease contract approved by the Authority.
More articles on Concluding the Unified Lease Contract
- Article 27
A 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.
دون إخلال بالأنظمة ذات العلاقة، يجوز للجهة الحكومية -بعد موافقة الهيئة ووزارة المالية- استئجار العقار المنتهي بالتمليك، وذلك وفقاً لما تحدده اللائحة.
- Article 28
The 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.
تضع الهيئة نماذج عقد الاستئجار الموحد، تشتمل على الأحكام المتصلة بالآتي: 1- تأجير العقار المستأجر للغير من الباطن، أو التنازل عنه لمصلحة جهة حكومية أخرى. 2- الق
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.