23 January 2021


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Main Page / Legislations / Law no (22) of 2004 Regarding Promulgating the Civil Code / Chapter Two: Effects of a Mortgage / Subchapter One: Effects of a Mortgage as between the Parties
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Law no (22) of 2004 Regarding Promulgating the Civil Code

Law Summary Record Type: LawNumber: 22Date: 30/06/2004 Corresponding to 13/05/1425 HijriNumber of Articles: 1188Status: In force
Official Gazette :Issue: 11Offcial Journal Issue Publication Date: 08/08/2004 Corresponding to 22/06/1425 HijriPage from: 364
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Subchapter One: Effects of a Mortgage as between the Parties

  • 1071 Article

     
     
    The mortgagor may alienate his mortgaged real property, and any act by him shall have no effect whatsoever on the rights of the mortgagee.

  • 1072 Article

     
     
    The mortgagor may manage the mortgaged real property and receive its yield until such yield is attached to real property.

  • 1073 Article

     
    1. A lease concluded by the mortgagor shall not be applicable to the mortgagee unless the date of such lease is fixed before the registration of attachment. If the lease is dated as said or concluded after the registration of attachment and the rent is not advanced, such lease shall not be effective unless it is included in the works of the bona fide management.
    2. Where the time between the conclusion of the lease and the registration of attachment is more than ten years, it shall not be effective against the mortgagee for more than ten years unless such lease was registered before the registration of the mortgage.

  • 1074 Article

     
    1. Neither the discharge of the rent in advance for a period of more than three years, nor the subrogation thereof, shall be effective against the mortgagee unless registered on a date prior to the date of registering the attachment.
    2. Where the discharge or the letter of subrogation or clearance is for a period exceeding three years, it shall not be effective against the mortgagee unless registered before the mortgage, otherwise the period shall be reduced to three years subject to the provisions of the previous Article.

  • 1075 Article

     
     
    The mortgagor shall guarantee the safety of mortgaged real property, and the mortgagee may object to any action or default that may materially reduce the said guarantee. The mortgagee may in the event of urgency take all measures of preservation and may have recourse against the mortgagor for expenses incurred in so doing.

  • 1076 Article

     
    1. Where real property is damaged or destroyed due to the mortgagor's fault, the mortgagee shall be entitled to request immediate payment of his debt or that a sufficient security for the settlement of his debt be provided.
    2. However, where the damage or destruction is not imputable to the mortgagor and the mortgagee does not accept the debt without security, the mortgagor shall have the option either to offer a sufficient security for the debt or to settle the debt before its maturity.
    3. In all events, where some acts are performed and cause damage to or destruction of the mortgaged real property or cause the security to become insufficient, the mortgagee shall be entitled to request the court to stop such acts and to order measures to prevent such damage or destruction.

  • 1077 Article

     
     
    Where the mortgaged real property is damaged or destroyed for any reason whatsoever, the mortgage shall transfer to the property that which is substituted to it, such as the compensation or the insurance amount or the indemnity of expropriation for public benefit.

  • 1078 Article

     
    1. The mortgagee may obtain fulfilment of his rights from such mortgaged real property according to the applicable procedures.
    2. Where such real property does not fulfil the mortgagee's debt, he may have recourse for the remainder of the debt against other assets of the mortgagor as a normal debtor.

  • 1079 Article

     
    1. Where the mortgagor is a person other than a debtor, attachment shall not be imposed on the mortgagor's assets except the mortgaged assets, and he may not plead to dispossess the debtor from his properties unless there is an agreement to the contrary.
    2. The mortgagor may avoid any procedure against him if he waived the mortgaged real property in accordance with the situation and in accordance with the provisions that the possessor shall follow in transferring real property.

  • 1080 Article

     
     
    Any condition that may give the mortgagee the right, when the debt is not settled at the maturity date, to possess real property mortgaged in consideration of the debt or any other price or to sell such property without following the procedures provided by the law, shall be invalid even if such condition is stipulated after the conclusion of the mortgage.

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