Who pays for repairs under a Saudi residential lease?

Article 419 of the Civil Transactions Law places all necessary repairs on the lessor, including repairs to defects that affect use and enjoyment. If the lessor does not act after being notified, the lessee may obtain the court's permission to repair and recover the customary cost, or, for urgent or customarily minor repairs, carry them out and deduct the cost from the rent while giving the lessor an account. Article 419(3) allows the parties to agree a different allocation.

What happens if the tenant stays after the term ends?

Article 440 of the Civil Transactions Law renews the lease on its original conditions and warranties, other than warranties given by third parties, where the lessee continues to use and enjoy the property with the lessor's explicit or implicit consent. Article 435(2) covers the opposite case: where the lessee unrightfully retains possession, the lessor is entitled to the prevailing market rental rate without prejudice to compensation.

Does selling the property end the tenancy?

No. Article 428 of the Civil Transactions Law provides that a leased thing may be sold and that the sale does not affect the rights of the lessee. Article 441 separately provides that a lease does not terminate on the death of either contracting party, subject to the rights of the heirs and the lessor to seek termination in the circumstances it sets out.

Residential Lease Agreement in Saudi Arabia

Residential leases are now governed by the codified lease articles of the Civil Transactions Law rather than uncodified practice, and the defaults are what matter. The landlord carries necessary repairs unless the parties contract out, a lease with no stated term runs to the end of the rent time unit, and a tenant who stays on with the landlord's consent renews the lease on its original conditions.

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Governing law

Leases are governed by Articles 407 to 442 of the Civil Transactions Law, Royal Decree No. M/191 of 18 June 2023, which apply to residential and other leases alike.

Civil Transactions Law, Royal Decree No. M/191 of 18 June 2023, Arts. 407 to 442 (Bureau of Experts official translation, Ministry of Investment)

What a residential lease agreement has to contain in Saudi Arabia

Article 407 defines a lease as enabling the lessee to use a non-consumable thing for a specified period in return for rent. Article 409 allows rent set on valid pricing criteria, or an amount plus a known percentage of output or profit, and Article 410 allows rent deferred, in advance or in instalments.
Civil Transactions Law, Royal Decree No. M/191 of 18 June 2023, Arts. 407, 409 and 410 (Bureau of Experts official translation, Ministry of Investment)
Article 412 starts the term on the date specified or, absent one, on conclusion. Article 413 makes a lease with no stated term valid until the end of the rent time unit, failing which the court fixes the term by custom and the circumstances.
Civil Transactions Law, Royal Decree No. M/191 of 18 June 2023, Arts. 412 and 413 (Bureau of Experts official translation, Ministry of Investment)
Article 419 puts all necessary repairs on the lessor. If he fails after notice, the lessee may seek the court's permission to repair and recover the customary cost, and may carry out urgent or customarily minor repairs and deduct them from the rent. Article 419(3) lets the parties agree otherwise.
Civil Transactions Law, Royal Decree No. M/191 of 18 June 2023, Art. 419 (Bureau of Experts official translation, Ministry of Investment)
Article 429 requires rent on the agreed dates, or on delivery absent agreed dates, or at the start of each period where the term is divided into periods; rent is not due for a period elapsing before delivery unless the delay is the lessee's.
Civil Transactions Law, Royal Decree No. M/191 of 18 June 2023, Art. 429 (Bureau of Experts official translation, Ministry of Investment)
Article 435 requires return of the property at the end in the same condition apart from normal wear and tear, and entitles the lessor to the prevailing market rental rate plus compensation where the lessee unrightfully retains possession.
Civil Transactions Law, Royal Decree No. M/191 of 18 June 2023, Art. 435 (Bureau of Experts official translation, Ministry of Investment)
Article 440 ends the lease on expiry unless automatic renewal is stipulated, and renews it on its original conditions and warranties, other than third-party warranties, where the lessee continues with the lessor's explicit or implicit consent.
Civil Transactions Law, Royal Decree No. M/191 of 18 June 2023, Art. 440 (Bureau of Experts official translation, Ministry of Investment)

What catches drafters out

Article 437 prohibits subleasing in whole or in part, or assigning the contract, without the lessor's authorisation or ratification.
Civil Transactions Law, Royal Decree No. M/191 of 18 June 2023, Art. 437 (Bureau of Experts official translation, Ministry of Investment)
Article 428 provides that a leased thing may be sold and that the sale does not affect the lessee's rights, so a change of owner does not by itself end the tenancy.
Civil Transactions Law, Royal Decree No. M/191 of 18 June 2023, Art. 428 (Bureau of Experts official translation, Ministry of Investment)
Article 1(2) applies the Civil Transactions Law without prejudice to any specific legal provision, so registration, platform and licensing requirements imposed on residential leasing by other instruments continue to apply alongside these articles.
Civil Transactions Law, Royal Decree No. M/191 of 18 June 2023, Art. 1(2) (Bureau of Experts official translation, Ministry of Investment)