Equivalent Rent Under Saudi Law
The real estate sector in the Kingdom of Saudi Arabia is witnessing remarkable development, especially with the issuance and updating of many regulations and legislation regulating this sector.
Among the most important real estate issues addressed by the Saudi regulations are cases of entitlement to the equivalent fee, how it is calculated, when it is paid to the injured party, and how to file a lawsuit demanding the equivalent fee.
What is the equivalent fee in Saudi law?
An exemplary fee is the fee at which a property or benefit is valued based on the prevailing market prices for a similar property.
In lease contracts, if the lease contract expires and the tenant does not hand over the property to the lessor and remains in the property for a period, the tenant is then obligated to pay the rent to the lessor for this excess period after the end of the unified lease contract at the same value during the contract period.
Is it possible to claim the equivalent wage between the heirs?
Is it possible to claim the equivalent wage between the heirs?
Upon the death of the heir, the property becomes the property of all heirs. Therefore, when some heirs continue to live on their heir’s property after his death, they are required to pay the same rent to the remaining heirs.
Equivalent Rent Under Saudi Law
In what cases is a property owner entitled to the same fee of expropriating the property for the public benefit?
The property owner is entitled to the equivalent fee for expropriation in accordance with Article 17 of the Real Estate Expropriation Law if the project owner requests the owner to vacate the property or prevents him from benefiting from it before he receives compensation, then the property owner is given the equivalent fee for the period between eviction and receipt of compensation unless He was the reason for the delay in disbursing compensation.
Article 20 of the system stipulates that the property owner shall be compensated in the event of temporarily seizing the properties he owns, at a rate not less than the equivalent fee, in the following cases:
- Emergencies, disasters and epidemics.
- Implementing an urgent public benefit project requires temporarily seizing this property and there is no alternative.
When is the proverb paid?
The equivalent fee in the civil transactions system is paid by the tenant in the following cases:
- If the lease term has expired and there is an urgent need for the tenant to remain in the property.
- If the tenant remains in the property after the lease expires without the landlord’s consent.
- If the agricultural land lease period expires before the harvest is reported for a reason beyond the tenant’s control.
- When the loan contract expires or the period of benefit from the loaned item continues and the borrower continues to benefit from it.
How is the reward for the proverb estimated?
How is the reward for the proverb estimated?
The method of calculating the equivalent fee is to compare the property with similar properties in terms of price, location, age of construction, purpose of use, area, specifications, services, duration, etc.
It can be estimated at the same value as the previous fare or by agreement between the two parties to the contract.
Equivalent Rent Under Saudi Law
How do I file a claim for the same fee?
The beneficiary can file a similar fee lawsuit through the Ministry of Justice’s Najiz platform by following the following steps:
- Log in to the Najiz platform via the national unified access.
- From the home page select “Judiciary”
- Choose a service “lawsuit newspaper”
- Click on the icon “new request”
- Enter the case classification “General Court”
- Select subcategory “Financial”
- Choose the type of lawsuit “property rent”
- Fill in the required data and attach documents.
- Submit the application.
- In real estate cases, it is important to seek the help of a skilled lawyer who has experience in real estate claims and how to file a lawsuit to recover your rights from third parties.
Equivalent Rent Under Saudi Law
A real estate attorney from the office of Attorney Abdul Majeed Al Rashid provides a variety of legal services, including case studies and analysis, drafting legal memoranda and defenses, following up on enforcement requests, representing clients before government agencies, attending hearings before real estate courts, and pleading on behalf of clients, among other services.

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