Article Eleven
Art. ElevenStatus unknownSaudi ArabiaRegulation
Issued by Saudi Central Bank (SAMA) Rulebook
If a Lessee selects to own the Leased Asset under the Contract, at any time, he may practice the right of early ownership of the Leased Asset by concluding a separate annex to the Contract upon payment of the remaining installments, , and without incurring the term cost for the remaining period of the Contract. The Lessor shall be entitled to compensation for the following: 1. Cost associated with reinvestment not exceeding the term cost for the three months following the early ownership. 2. Any cost required to be paid under Contract to a third party by the Lessor if such cost cannot be recovered; and that shall be for the remaining period of the Contract. With exception to the aforementioned, a period for prohibition of transfer of ownership may be provided for in the Contract, if the subject of Contract is real estate and such condition results in deduction in term cost. Prohibition period shall not exceed two years from the date of Contract.
The Arabic text is the legally binding version. The English translation is provided for guidance only.
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