Civil Transactions Law: lease contracts and the parties' duties
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- Ministry of Investment
Property owners, tenants and investors often need this kind of advice when ownership or a sale is disputed, when a lease runs into disagreement, or before a property deal whose procedure they want to confirm.
Real estate matters are governed by several laws, chiefly the Civil Transactions Law issued under Royal Decree No. M/191 dated 29/11/1444H, the Real Estate Registration Law and the Real Estate Brokerage Law. Relevant provisions include:
Yes. The 1447H regulatory provisions on the landlord and tenant relationship require a landlord with an unregistered lease of residential or commercial property within the urban boundary to apply to register it on the Ejar electronic network, and the tenant may also request registration. The other party may object to the contract data before the Real Estate General Authority within sixty days of notice of the registration; if no objection is made in that time, the data is treated as correct.
General courts hear lawsuits relating to real property, including ownership disputes, eviction and payment of rent, unless the law provides otherwise. Violations of the Real Estate Brokerage Law go to a committee at the Real Estate General Authority that imposes the prescribed penalties, and a party penalized may challenge the decision before the competent judicial body within thirty days of notification. A claim between the parties over commission or a deposit is a lawsuit for the competent court.
Yes. A real estate claim is filed online through the Najiz platform, and general courts hear it unless the law provides otherwise. If the claim concerns a real right in a registered property, or a disposition that must be registered, and would change the register, the court hears it only after the claim has been annotated on the register.
Yes, for residential or commercial property within the urban boundary, unless one party notifies the other that it does not wish to renew at least sixty days before the term ends. The Real Estate General Authority may set a longer notice period in model contracts, and specific exceptions apply.
Not at present. The 1447H rent freeze and the limits on a landlord refusing renewal currently apply only to properties in Riyadh, unless a decision applies them to other cities.
As a rule, ownership of real estate passes by contract when the disposing party owns the property. Where a law requires a procedure, it passes only once that procedure is complete, for example registering the disposition in the real estate register for a registered property. Dispositions after the first registration, including sale, division and inheritance, produce their judicial and administrative effects only once registered.
Since 22 September 2026, they are carried out through the Real Estate Registry platform for property within the urban boundary of Dammam, Al Khobar, Dhahran, Qatif and other Eastern Province cities. This includes transfers of ownership, subdivision and mortgages, as in Riyadh, and other cities are being added in stages.
Yes. A brokerage contract must be in writing and the broker must lodge a copy with the Real Estate General Authority, and it cannot be relied on otherwise. Real estate brokerage may be practiced only under a license from the Authority.
The legal texts and official publications this content relies on.
This is general information based on the cited laws when this page was prepared. It may change, and it is not legal advice on a specific case.
The Civil Transactions Law governs the lease, the duties of each party, and how a lease ends or is terminated, and the 1447H provisions add rules on automatic renewal and on registering leases on Ejar.
An owners' union, or owners' association as the Law calls it, is the body that manages a jointly owned property, and one must be set up where the separated units have three or more owners. This guide covers its rules under the Law of Ownership, Subdivision and Management of Real Estate Units and its Implementing Regulation.
The Civil Transactions Law sets the general framework for contract rules in Saudi Arabia, covering how a contract is formed, performed, breached, and the periods after which claims for the rights it creates will no longer be heard.
The Real Estate Registration Law makes the property itself the basis for recording rights in the real estate register, which has absolute evidential force. This overview covers first registration and objections to it, the effect of registration on ownership, sale and inheritance, and the authority responsible for it.