SCA 34178272/2013
Type
Case
Court
Saudi Arabian Court of Appeal
Jurisdiction
Saudi Arabia
Taxonomy
General Real Property Law, Regulatory Compliance, Lending & Security
Copyright
LexisNexis
Decision date
13 Feb 2013
Catchwords
Mortgage – Permission to Sell – Property – Instalments – Property contract
The original dispute involved a property which had been sold and it had been agreed that payments would be made by instalments. Money was paid but a later instalment was not accepted, and the original owner continue to live in the property. A key issue was that the sale contract confirmed the property was mortgaged to the Real Estate Development Fund. Those who provide a mortgage can refuse to agree a sale, which made the sale invalid.
Background
A buyer claimed that he bought a villa with two floors and adjacent land for 400,000 Riyals which was to be paid in instalments. He also claimed he had paid 75,000 Riyals of the price but when he wanted to pay another instalment, of 40,000 riyals, the seller had refused to accept the money. The buyer filed a case against the seller with Riyadh General Court (case Number: 2179 Folder Number: 3419890 on 05/12/2012) requesting the seller to vacate the second floor and accept the instalment.
The seller said he would vacate the second floor and accept the instalment on the condition that the instalment amount was 183,000 Riyals. However, the buyer insisted that only 40,000 Riyals was due.