Instructions for the Sale and Purchase of Public and Private Endowment

Show Law Preamble

  • Decision No. 472 dated 28/7/1398 AH

  • The Council of Ministers

  • After reviewing the accompanying correspondence which includes the letter of His Excellency the Minister of Justice No. 2210 dated 30/12/1396 AH, referring to the letter of His Eminence the President of the Supreme Judiciary Council No. 591/M/Q dated 11/6/1396 AH, which states that complaints regarding endowments have increased and there has been severe dissatisfaction due to the disruption of the interests of endowments confiscated for the public interest, given that their values are preserved with the competent authority and it is impossible to purchase a replacement except after the issuance of a Sharia deed granting permission to purchase, ratified by the Board of Grievances. His Eminence expressed the desire to convene a meeting of the honorable Sheikh Abdul Aziz bin Rasheed, President of the Board of Grievances, Sheikh Saleh Al-Luhaidan, Member of the Council, Sheikh Mohammed Al-Badr, President of the High Court in Riyadh, Sheikh Saud bin Duraib, former Consultant at the Ministry - and the Assistant Undersecretary for Judicial Affairs - to study the matter and submit a report to ensure the protection of the interests of the endowments from loss. They were notified accordingly and submitted their report included in the documents, containing their views regarding the sale of endowments, purchasing replacements for them, how to preserve the price before purchasing the replacement, and proposing solutions they deemed sufficient to ensure the soundness of procedures and guarantee the rights of endowments and minors. It was referred to His Eminence the President of the Council by letter No. 12/2998/K dated 25/9/1396 AH, who returned it by his letter No. 1330/M/Q dated 20/12/1396 AH, endorsing what the honorable sheikhs decided in their aforementioned decision, stating that their conclusions are the summary of their experiences and, God willing, will resolve many complaints on this subject. His Eminence wished to submit this to the Royal Court for approval and then circulate it to the courts for implementation.

  • Therefore, approval is requested for the contents of the aforementioned report in order to achieve the interest.

  • After reviewing the minutes taken in the Experts Division No. 4/102 dated 19/7/1398 AH, taken on the subject.

  • The following is decided

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Regarding the funds of minors, if the guardian of the minor is the father, he does not need to consult the judge in sales and purchases but acts according to what he deems in the minor's interest and is not challenged except if something appears that necessitates preventing him from acting, in which case he is prevented.

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The court shall maintain special files for endowments, minors' funds, and the like, and all information shall be linked to these files. It shall also keep a ledger in which the endowments, minors' funds, and the like are recorded, detailing any increase or decrease in the funds. If the funds belong to a minor or similar and are delivered to their owner, this shall be noted along with the document evidencing the delivery of the funds.

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The trustee is treated by the father as the guardian is by the ruler in accounting and monitoring his financial activities, and both are permitted to trade with the funds entrusted to them or to entrust them to a trustworthy expert in commercial matters after the judge's approval. The court must deliver the funds to trustees, guardians, and supervisors based on statements specifying the type of funds, their quantity, and the condition of the real estate, whether sound or dilapidated. It is not permissible for cash funds designated for purchasing real estate for an endowment or similar purposes to remain in the hands of the trustee, supervisor, or guardian for longer than the period determined by the court, and this period should be short. If it exceeds this period, the amounts must be deposited with the Monetary Agency, and the agency shall disburse these amounts only if authorized by a court order specifying the reason for the disbursement, after the court verifies that such action is necessary, including for the benefit of the minor, the endowment, or similar cases.

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The judge must exert all possible efforts to ascertain the competence of the person appointed over the minor and similar cases, as well as the supervision of the endowment. He is directly responsible for any leniency and negligence in this regard. The court imposes the guardian's and supervisor's fees according to the work they perform, and it also estimates the necessary alimony for the orphan and similar cases. An accounting must be conducted upon receipt of the mentioned funds, upon the dismissal of the supervisor, trustee, or similar persons, or upon their request for exemption, all under the supervision of the court. All the mentioned amounts must be deposited in the institution through the head of the court in courts with more than one judge, who also authorizes their disbursement. This authority lies with the judge in courts with only one judge.

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