Article 6 of the Saudi State Leasing of Real Estate Law
المادة 6 من نظام استئجار الدولة للعقار
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
يشترط في العقار المراد استئجاره الآتي:
1- أن يكون خالياً من العيوب الإنشائية.
2- أن تتوافر فيه اشتراطات التراخيص اللازمة من الجهات المختصة.
3- أن تتناسب مساحته مع حاجة الجهة الحكومية.
4- أن يكون مؤمناً عليه -إذا كان ذلك متاحًا- من قبل المؤجر، وفقاً للأنظمة ذات العلاقة.
5- ألا تكون على العقار مخالفة من أي جهة مختصة، أو يكون محل نزاع.
6- ألا يكون العقار عائداً لأحد من منسوبي الهيئة أو الجهة الحكومية الراغبة في الاستئجار، أو قريب له من الدرجة الأولى، أو الدرجة الثانية، أو الدرجة الثالثة.
7- ألا يكون العقار عائداً لشخص من الأشخاص المحظور التعامل معهم نظاماً وفقاً لما تحدده اللائحة.
8- على الجهـة الحكوميـة -عنـد وضـع المواصفـات الفنيـــة- أن تأخذ فـــي الحسـبان متطلبـات الأشـخاص ذوي الإعاقة واحتياجاتهم.
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 6 explained in plain English
This article explains what must be met in the real estate itself for a government body to lease it, and these are important conditions for every owner who wishes to lease to the State:
- Freedom from construction defects.
- Availability of the licensing requirements needed from the competent bodies.
- The area suits the government body's need.
- The real estate is insured by the lessor in accordance with the relevant laws, if insurance is available.
- There is no violation on the real estate from any competent body, and it is not the subject of a dispute.
- The real estate does not belong to one of the personnel of the Authority or the government body wishing to lease, or to a relative of his of the first, second or third degree.
- The real estate does not belong to a person with whom dealing is prohibited by law, as the Regulations specify.
Item eight adds a duty on the government body itself: to take into account the requirements and needs of persons with disabilities when setting the technical specifications.
The sixth condition aims to prevent a conflict of interest, so an employee of the leasing body or of the Authority, and his relatives up to the third degree, cannot lease his real estate to that body. As for determining those with whom dealing is prohibited, the article leaves it to the Regulations.
These conditions complement the restrictions in Article 5 on leasing to house personnel, and once they are met the body submits its leasing request to the Authority through the portal under Article 7.
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
Saad owns a building in Riyadh and wishes to lease it to a ministry in which his nephew works. The nephew is a relative of the third degree, so the ministry may not lease the real estate because it belongs to a relative of one of its personnel up to the third degree, even if the building is sound and licensed.
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 6 of the Saudi State Leasing of Real Estate Law
What are the conditions for real estate leased by a government body?
It must be free of construction defects, have the licenses available, suit the need in area, be insured if insurance is available, be free of violations and disputes, and not belong to the personnel of the Authority or the body or their relatives or to a person with whom dealing is prohibited.
May a government employee lease his real estate to the body he works for?
No. The real estate must not belong to one of the personnel of the Authority or the body wishing to lease, or to a relative of his of the first, second or third degree.
Is insurance of the real estate always a condition?
The real estate must be insured by the lessor if that is available, in accordance with the relevant laws.
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.