SCC 104/41/11
Type
Case
Court
Saudi Arabia Court of Cassation
Jurisdiction
Saudi Arabia
Taxonomy
Rent & Service Charges, Mortgages, General Contract Law
Copyright
LexisNexis
Decision date
8 Jun 2005
Catchwords
Sale of Property – Inheritance – Mortgage – Foreigner – Simulated Contract – Eviction – Rental Payment
This case involved a claim by a group of heirs who had sold building and agreed the buyer would pay off the mortgage in instalments. The buyer was a foreigner and stated it was a simulated contract. The court ruled the contract was illegal as mortgaged property should not be sold.
Background
A claimant filed a case at Mecca General Court on behalf of himself and other claimants against a defendant claiming they inherited a building from their father and the building was mortgaged to the Real Estate Development Fund. The claimants stated they had sold the building for 260000 Riyals and agreed the buyer would pay the remaining instalments to the Real Estate Development Fund while the defendant would stay in the building. The claimants stated the defendant lived in the building but did not pay the instalments. The claimants requested the court to order the defendant to vacate the property and pay rent for the period he had stayed on.