Damages
Synonyms: legal damages، contractual losses، material harm، financial liability، loss and indemnity
Last updated: 2026-05-09
Short Definition
Damage to property caused by tenant, materially visible, accounted for from deposit or added to rent.
Overview
Legal Basis
The provisions governing damages and compensation in Saudi real estate are based on the rules of contractual and tortious liability in the Civil Transactions Law, and the warranty principles derived from Islamic jurisprudence.
Practical Example
Mahmoud Al-Harbi rented a commercial warehouse in the Industrial District, Abha, at 48,000 SAR annually. During the rainy season, water leaked from the ceiling due to the landlord's negligence in repairing a known defect, destroying goods worth 85,000 SAR. Mahmoud immediately documented the damage with photographs and invoices and notified the landlord in writing through Ejar. He filed a compensation claim before the real estate court in Abha, presenting technical reports and original purchase invoices. The court-appointed expert issued a report establishing the causal link between the maintenance negligence and the damage. The court awarded Mahmoud 85,000 SAR for the destroyed goods, 12,000 SAR for income loss during the stoppage period, and 8,000 SAR for emergency transportation and storage costs.
Common Mistakes
- ✗Delaying documentation of damage at the time of occurrence, making subsequent proof almost impossible
- ✗Claiming compensation for anticipated damages that have not actually occurred without proving the unlawfulness of the harmful act
- ✗Neglecting to claim indirect damages such as lost profits and emergency relocation costs
- ✗Accepting a quick settlement covering only visible damage without accounting for hidden damage that appears later
- ✗Confusing the late penalty stipulated in the contract with actual compensation for damage
International Differences
In the UAE, rental dispute settlement committees (RDSC) regulate compensation claims and apply similar principles in proving damage and causal links. In Turkey, the Turkish Code of Obligations distinguishes between Tazminat (civil compensation) and Manevi Tazminat (moral compensation) with detailed provisions for each. In Egypt, the theories of direct damage and reflective damage are applied under civil law. In the UK, the rule in Hadley v Baxendale is applied to determine claimable damages. In the US, a distinction is drawn between Compensatory, Punitive, and Nominal Damages under differing provisions.