Article 12 of the Saudi State Leasing of Real Estate Law
المادة 12 من نظام استئجار الدولة للعقار
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
في حال بقاء الجهة الحكومية بالعقار المستأجر بعد انتهاء مدة عقد الاستئجار دون تمديده، أو تجديده، أو إخلائه؛ تدفع قيمة أجرة مدة بقائها، وذلك 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 12 explained in plain English
This article addresses a recurring practical situation: the contract term has ended but the government body is still in the real estate.
For the provision to apply, the following must all be present:
- The contract term must have ended.
- The contract must not have been extended or renewed.
- The body must not have vacated the real estate.
In this case the government body pays the rent for the period of its stay. The lessor does not lose his right to rent merely because the contract has ended and was not renewed, so long as the body remains in the real estate.
As for the way this rent is calculated and the procedures for paying it, the article refers them to the Regulations, and it does not state a particular percentage or amount.
The article is connected to Article 11, which makes the government body the one that manages the contract and pays its value, and to Article 13, which requires the body to notify the lessor and the Authority of its wish not to extend or renew the contract.
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
The lease contract for a building owned by Abdullah in Hail, leased to a government body, ended without renewal, and the body stayed in the building for four months until it moved to a new headquarters. Under this article, the body pays Abdullah the rent for those four months as the Regulations specify.
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 12 of the Saudi State Leasing of Real Estate Law
Does a government body pay rent if it stays after the contract ends?
Yes. If it remains in the real estate after the term ends without extension, renewal or vacating, it pays the rent for the period of its stay.
How is the rent for the period of staying after the contract ends calculated?
The article does not state the method of calculation, but refers it to what the Regulations specify.
More articles on Lease Term and Renewal
- Article 10
The 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.
1- يكون عقد الاستئجار لمدة لا تزيد على (خمس) سنوات، وللجهة الحكومية -بعد موافقة الهيئة- تمديد، أو تجديد العقد قبل نهاية مدته، لمدة لا تزيد على (خمس) سنوات أخرى،
- Article 13
The 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.
1- تبلغ الجهة الحكومية المستأجرة المؤجر والهيئة عن رغبتها في عدم تمديد أو عدم تجديد عقد الاستئجار عبر البوابة، أو بأي وسيلة أخرى، وذلك وفقاً لما تحدده اللائحة.
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.