Liability

Legal liability in the real estate context is the legal obligation imposed on a natural or juridical person arising from an act or omission that causes harm or loss to the other party. It divides into contractual liability arising from breach of a contractual obligation, and tortious liability arising independently of a contract as a result of a harmful act. In Saudi tenancy agreements, liability is allocated between the landlord and tenant in accordance with the Unified Rental System. The landlord bears responsibility for structural defects and essential systems such as electricity, plumbing, and air conditioning, while the tenant bears responsibility for damage caused by improper use or negligence. Proof of a causal link between the act and the harm is required to establish liability. Legal liability has gained new dimensions under the real estate oversight framework supervised by REGA, as civil liability claims can be filed alongside administrative complaints. Additionally, property liability insurance offered by SAMA-licensed companies strengthens protection for contracting parties.