Title Warranty
Synonyms: Warranty Against Eviction، Warranty of Title، Covenant of Quiet Enjoyment، Title Guarantee
Last updated: 2026-09-25
Short Definition
A title warranty is the seller's legal duty not to disturb the buyer's enjoyment of the property and to deliver it free of third-party rights predating the sale; Saudi law calls it the warranty against interference and eviction, with special rules for judicial auctions.
Overview
Legal Basis
Article 330 of the Civil Transactions Law, issued by Royal Decree No. (M/191) dated 29/11/1444H, provides that the seller warrants non-interference and freedom of the property from third-party rights predating the contract; Article 335 sets out what the buyer may recover on total eviction; Article 337 allows the warranty to be excluded or limited except for matters arising from the seller's own act or deliberately concealed; and Article 339(d) excludes warranty against defects where the sale is by auction conducted by judicial or administrative authorities. Article 54 of the Execution Law (M/53 dated 13/8/1433H) and Article 30(3) of the new Execution Law (M/237) provide that the award decision clears the property or asset sold of any entitlement claim against the winning bidder. Articles 6 and 8 of REGA's Real Estate Auctions Regulation require disclosure of real rights, disputes and mortgages.
Practical Example
Fahd buys a plot in Riyadh at a voluntary auction for SAR 1,800,000; the auction terms exempt the seller from the warranty against eviction. A year later, a claimant proves a right predating the sale over part of the plot that was never disclosed, and it emerges that the seller knew of it and concealed it, so the exemption does not protect him and Fahd recovers damages from him. By contrast, Fahd's brother buys an apartment at a judicial auction for SAR 650,000; when a creditor of the former owner asserts a right over it, the claim against the brother fails because the award decision clears the property of any entitlement claim against the winning bidder. But when a hidden plumbing leak appears, he has no defect warranty claim, since the sale was a judicial auction.
Common Mistakes
- ✗Assuming an exemption from the warranty against eviction always protects the seller — it does not cover the seller's own acts or deliberate concealment, nor block recovery of the price unless the buyer knew.
- ✗Assuming a buyer at a judicial auction can claim for hidden defects — there is no defect warranty in auction sales by judicial or administrative authorities.
- ✗Failing to check the bulletin and deed for mortgages, disputes and third-party rights before a voluntary auction.
- ✗Delaying notice to the seller of an eviction claim — the buyer may lose the warranty if the seller proves his intervention would have defeated the claim.
- ✗Confusing the warranty against eviction (third-party rights) with the warranty against hidden defects (property condition) — each has separate rules.
International Differences
Buyer protection varies worldwide. In the United States, buyers often rely on title insurance, and at foreclosure auctions property may be conveyed by a deed without full warranties. In the UK, the buyer reviews the legal pack before the auction because the contract is formed when the hammer falls. In Turkey and Egypt, a judicial sale generally clears mortgages, though some rights may survive. The Saudi system is distinctive in its official title deeds and real estate registry, and in an express rule that the award decision clears the property of any entitlement claim against the buyer in judicial sales.
