Important terms and conditions in the lease contract
Contracts are basically defined as regulatory agreements concluded between two parties to complete a process, whereby the rights and duties of each of them are determined. One of the most important contracts followed in the Kingdom of Saudi Arabia and related to the benefit is the lease contracts, as lease contracts are among the most important contracts dealt with in the Kingdom, and their importance comes in maintaining the financial relations between the landlord and the tenant, as the rights and duties that the two parties are committed to are determined with great precision It is worth noting that the Kingdom of Saudi Arabia has announced the issuance of the Civil Transactions Law, which includes all the terms and conditions regulating this contract, especially the rights and obligations of tenants and lessors. Therefore, rental contracts in Saudi Arabia represent a basic basis for ensuring the preservation of rights and obligations between the landlord and tenant, the most important of which is achieving the financial benefit resulting from this relationship. With the activation of the Civil Transactions Law, it is now possible to ensure the implementation of these contracts in the best possible way that achieves the interests of both parties, ensuring the stability of the relationship between them.
The concept of rent
A lease is a contract by which a landlord enables a tenant to use something non-expendable for a certain period of time in exchange for a fee.
Terms and conditions of the lease contract in Saudi Arabia
The Civil Transactions Law includes all provisions related to the lease contract, including provisions related to the rented item, provisions related to the rent, and provisions related to the duration of the lease contract, and they will be explained as follows:
The rented item in the lease contract
The rented item may be in kind, a benefit, or a right, whether it is specific to itself or to the type, and the rented item may be a common share.
The fare in the lease contract
The fare estimate may be limited to a statement of valid bases by which it is determined, and it may be in a specific amount with a known percentage of the output or profit. It may also be a condition to expedite, postpone or pay the fare in installments. The Civil Transactions Law also clarifies that if the rent is concluded for a specific thing with a total fare, and the number of its units is mentioned without stating the fare for each unit, then its units appear to be more or less The fare was specified in the contract, with no increase or decrease, and in the event of a decrease, the tenant had the right to request termination of the contract.
If the contract specifies the rent for each unit, the tenant is obligated to pay the rent specified for the excess units, and the landlord is obligated to reduce the rent specified for the missing units. The tenant may request termination in both cases. If the amount of the decrease or increase is small and has no effect on the intended benefit, the tenant does not request termination.
Duration of the lease contract
The lease term begins from the date specified in the contract. If it is not specified, then from the date of the contract. If the lease term is not specified and the rent is for a specific unit of time, the lease contract is considered to be concluded until the end of that unit of time. Otherwise, the court determines the lease term according to custom and the circumstances of the contract. This is in addition to the fact that it is permissible to add the lease term to a future term If the lease term expires and it is proven that there is an urgent need to extend it, it shall be extended to the extent of that need, provided that the tenant pays the equivalent rent for this term, unless otherwise agreed.
Important terms and conditions in the lease contract
Lessor’s obligations in the lease contract
The lease contract entails many obligations on the landlord towards the tenant. The Civil Transactions Law has stated these obligations as follows:
First: Commitment to deliver the rented item
This obligation falls on the landlord. The landlord must deliver the rented item and its accessories in a condition that is suitable for them to fully fulfill the intended benefit. Delivery also enables the tenant to benefit from the rented item without any impediment to the benefit, while this continues until the expiration of the rental period. The landlord may refrain from delivering the landlord until he fulfills the accelerated rent. It is worth noting that the provisions for delivery of the sold item and its accessories apply to the delivery of the rented item and its accessories, unless otherwise agreed.
Second: The lessor’s commitment to the necessary reforms
This obligation falls on the lessor, so the lessor must carry out the necessary repairs necessary for the leased property to remain usable, including repairing any defect in the leased property that affects the fulfillment of the intended benefit, and if the lessor delays carrying out the repairs after his excuse, and without prejudice to the tenant’s right to request Annulment or reduction of rent. The tenant has the right to obtain permission from the court to carry out the repairs, and he has the right to return to the lessor what he spent to the extent known The tenant may, without the court’s permission, carry out repairs and deduct their expenses from the rent to the extent known if they are urgent matters or are customarily easy. In all cases, the tenant must provide the landlord with an account of what has been repaired, and the Civil Transactions Law has permitted the landlord and tenant to agree otherwise.
If the rented item is completely destroyed during the lease period, the contract is terminated on its own initiative. If the rented item is partially destroyed during the lease period or becomes in a state of reducing the benefit for which it was rented, and this is not due to the tenant, he may request the termination of the contract or the reduction of the rent. If the tenant, with the landlord’s permission, creates constructions or repairs for the benefit of the tenant, he has the right to return what he spent to the usual extent, even if the tenant does not stipulate return Unless otherwise agreed, and if what the tenant has done is for his personal benefit, he has no recourse against the landlord, unless the landlord and tenant agree otherwise.
Third: The landlord’s obligation to ensure that the tenant is not exposed
This obligation falls on the lessor, so the lessor must refrain from exposing the lessee in fulfilling the benefit throughout the lease period, including that the lessor makes a change in the leased item that prevents benefit from it or disrupts the intended benefit, otherwise he is a guarantor, and in the ruling on the lessor’s exposure, the exposure issued by one of his subordinates is considered, and the lessor guarantees the lessee the exposure issued by a third party if the exposure is based on a statutory reason If the exposure results in the tenant being completely or partially deprived of benefiting from the rented item, he may request cancellation or reduction of the rent, without prejudice to his right to compensation.
The lessor also does not guarantee the exposure issued by a third party if it is not based on a statutory reason, provided that if the exposure is for a reason that the lessee has no control over, and results in him being deprived of benefiting from the rented item, he may request cancellation or reduction of the rent If a public entity’s action results in a decrease in the benefit of the leased property, the lessee may request termination of the contract or a reduction in the rent without prejudice to his right to demand compensation from the lessor if the public entity’s action was issued for a reason for which the lessor is responsible. It is also worth noting that the leased property may be sold without affecting the lessee’s rights.
Fourth: The lessor’s obligation to guarantee hidden defects
The lessor is responsible for ensuring that the defects in the leased property prevent the lessee from benefiting from the leased property or reduce this benefit. However, the lessor does not guarantee defects that are customarily tolerated or that the lessee is aware of at the time of contracting. If the defect results in the lessee being completely or partially deprived of benefiting from the leased property, he may request termination or reduction of the rent without prejudice to his right to compensation Any agreement that includes an exemption or limitation of the guarantee of exposure or defect shall be void if the lessor has intentionally concealed the reason for such guarantee.
Important terms and conditions in the lease contract
Tenant obligations in the lease contract
In addition to the obligations of the previously mentioned lessor, the Civil Transactions Law includes a statement of the lessee’s obligations towards the lessor, which are as follows:
First: Commitment to pay the fare
The tenant is obligated to pay the rent on the agreed dates. If he does not agree on the dates, he is obligated to pay them upon delivery of the rent. If the lease term is divided into time periods, he is obligated to pay them at the beginning of each time period. The rent is not due for a period that has elapsed before delivery of the rent, unless the delay in delivery is due to the tenant.
Second: Commitment to preserving the rented item
The tenant is obligated to keep the rented item as a normal person, and to compensate the landlord for any damages incurred by the rented item resulting from its infringement or negligence. If there are multiple tenants, each one of them is obligated to compensate for the damages resulting from his infringement or negligence. The tenant is also obligated to use the rented item within the limits of the benefit agreed upon in the contract. If there is no agreement, he is obligated to use it according to what was prepared for him Likewise, during the lease period, the tenant is obligated to maintain the leased property in accordance with what is required by custom, unless otherwise agreed upon. The tenant also does not prevent the lessor from carrying out the necessary repairs to preserve the leased property if the lessor informs him before starting it for a reasonable period.
Third: Commitment to return the rented item
The tenant is obligated to return the rent to the landlord upon expiration of the lease contract in the condition in which he received it, with the exception of what is required by usual use. The tenant may not rent the entire rented item or part of it or waive the contract except with the landlord’s permission or approval. It should be noted that the tenant authorized to rent or waive to others when he does so is bound by the restrictions of the benefit he owns in type and time.
What are the controls for terminating a lease contract in Saudi Arabia?
The lease contract ends upon the expiration of the specified period, unless it is required to be renewed automatically. If the lease contract ends and the tenant continues to benefit from the tenant with the express or implied consent of the landlord, the contract is considered again with its terms and guarantees, except for the guarantees provided by third parties. Also, if the landlord requests from the tenant a certain increase over the specified rent and the tenant remains in possession of the tenant after the end of the contract period without any objection from him to the increase, he is obligated to make that increase starting from the time of the end of the existing contract The contract was prepared again with its terms and guarantees, in addition to the guarantees provided by third parties.
The lease contract also does not end with the death of one of the contracting parties. The tenant’s heirs may request the termination of the contract within a reasonable period if they prove that the burdens of the contract have become heavier due to the death of their heir than can be borne by their resources from the estate, or that the contract exceeds the limits of their needs or that it was concluded based on considerations related to the person of their heir. The lessor also has the right to request the termination of the contract if the tenant dies and the contract was concluded based on considerations related to his person.
Each of the contracting parties may also request the termination of the lease contract if an emergency excuse arises related to it, and he is obligated to compensate the other contracting party for the damage resulting from this termination. If the landlord is the one requesting the termination of the contract, the tenant is not obligated to return the tenant until he receives compensation or obtains sufficient security.
Important terms and conditions in the lease contract
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