Fair Rental Value of the Property
The equivalent fee is one of the rights approved by the Civil Transactions Law, which guarantees the property owner obtaining fair compensation for any actual benefit from his property outside the scope of the contract or after its expiration. The need to claim it often arises when the lease term expires and the tenant continues to use the property without paying a fair consideration, or when a dispute arises over the rent. In such cases, the system allows the landlord to claim the equivalent wage as a fair consideration for the actual period of use of the property.
What is meant by the proverbial wage in the Saudi system?
The equivalent fee is the financial compensation that the property owner is entitled to for the benefit of others with his property, and it is estimated based on the market value of the similar property, and not necessarily the fee previously agreed upon in the contract.
The same fee is used in cases where there is no specific consideration covering the actual usufruct period, or when the contract expires and occupancy continues without a new agreement between the landlord and tenant.
When is the reward of the proverb due?
The proverb is worth paying in a number of cases, most notably:
- The tenant continues to use the property after the lease expires without renewal.
- A dispute arose between the two parties, resulting in the tenant remaining in the property without paying the agreed-upon rent.
- Utilization of the property without a contract covering this period.
In all these cases, the basis is the existence of an actual benefit from the property without financial compensation covering that period.
The rent of the proverb is a right that guarantees you in exchange for benefiting from your property. The office of lawyer Abdul Majeed Al Rashid shows you how to claim it legally.
What is the difference between the agreed upon fare and the proverbial fare?
The agreed fare is the value specified in the lease contract between the two parties, and is binding during the term of the contract.
The equivalent fee is a judicial estimate based on the market value of the similar property, and is used when there is no agreement covering the period of usufruct, or when the contract expires and occupancy continues by the tenant.
How to calculate the proverb’s fee?
The reward for the proverb is not determined randomly, but is estimated based on several factors, the most important of which are:
- Property location.
- Property type (residential or commercial).
- Property condition and equipment.
- Rental value of similar properties in the same area.
Valuation reports or real estate experience are often used to determine the fair value that represents the ideal fee.
Is a contract required to claim the equivalent fee?
Yes, in the practical application of filing a lawsuit through the Najiz platform, a notarized lease contract is required that explains the relationship between the two parties, in addition to a property title deed.
The lawsuit also requires the entry of basic data such as:
- Contract data (contract number, duration, fare type).
- Identity of the parties to the contract.
- The reason for demanding the reward of the proverb
- Ideal wage claim period.
- Details of the amounts in dispute.
It is not possible to proceed with lawsuit procedures without the availability of this data, as it represents the basis for proving the contractual relationship and the duration of use of the property.
How can I file a property rent claim (the equivalent rent for the period in excess of the contract)?
The lawsuit is filed via the Najiz platform under the name: “The equivalent fee for the period in excess of the contract”. Application steps include:
- Submit a new lawsuit request via the Najiz platform (the lawsuit newspaper).
- Fill in the data of the property and the parties to the contractual relationship.
- Enter details of the lease contract and its duration.
- Specify the claim period (from – to).
- Clarification of the amounts claimed.
- Attach required documents such as lease contract and title deed.
After submitting the application, it is registered and referred to the General Court for consideration.
Who bears the legal fees for the proverbial fee lawsuit?
The lessor (the plaintiff) bears the legal fees upon filing the lawsuit, which are calculated estimateably via the Najiz platform through the legal costs calculator. These fees initially appear during the application process and may vary depending on the value of the claim and the details of the lawsuit.
What is the relationship between the proverbial fee lawsuit and the property eviction lawsuit?
The proverbial fee claim is directly related to the property eviction claim in many cases. If the lease contract expires and the tenant does not vacate the property and continues to benefit from it, the landlord has the right to claim the equivalent rent for the period following the expiration of the contract until the date of the actual eviction.
Therefore, an exemplary fee claim may be filed independently, or in parallel with an eviction claim, depending on the circumstances of the case.
Legal advice and appointment of a lawyer in the proverbial fee lawsuit from the office of lawyer Abdul Majeed Al Rashid
Similar fee claims have many details and are not simple in nature, as they require an understanding of the details of the contract, the usufruct period, and the method of calculating the fee, especially in cases where there is a dispute between the two parties.
Through the office of lawyer Abdul Majeed Al Rashid, you can book a legal consultation with a group of real estate lawyers licensed by the Ministry of Justice around the clock. You can also appoint a lawyer to take over the procedures for filing the lawsuit and following it up until the ruling is issued, in a way that ensures the preservation of your rights as a landlord.
Finally
The equivalent fee is one of the rights approved by the Civil Transactions Law, which guarantees the property owner obtaining fair compensation for any actual benefit from his property outside the scope of the contract or after its expiration. So that it guarantees every person his right and prevents any illegal exploitation of the property.
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