How Did a Landowner Legally Avoid a SAR 100,000 Fee?

How Did a Landowner Legally Avoid a SAR 100,000 Fee?

A landowner filed a case before the Administrative Court in Riyadh seeking the cancellation of a SAR 100,000 White Land Fee imposed on her property.

Grounds for the claim

• The land has been under a judicial dispute for years and is subject to court-ordered liquidation.
• The existence of endowment (waqf) shares prevents any disposition without judicial approval.
• The owner was not responsible for the legal impediment.
• The Ministry miscalculated the ownership share.

The Ministry’s response

• There is no genuine impediment to disposition.
• The fee was calculated correctly based on ownership records.
• The heirs are responsible for delays in completing procedures.

The Judgment

The court ruled to cancel the imposed fee, and the Court of Appeal upheld the judgment.

Legal Principle

• White Land Fees cannot be imposed where there is a judicial or regulatory impediment preventing the owner from disposing of the land, provided the owner is not responsible for it.
• Property records must align with judicial reality, not outdated or inaccurate registry data.

Salama Law Firm’s opinion

Although the White Land Fees Law and its implementing regulations have recently been amended, the principle of exemption due to a non-owner-caused impediment or obstacle remains valid (Article 8 of the new regulation).
This judgment serves as a strong judicial precedent that can be invoked in similar cases.