Article 10 of the Saudi Real Estate Unit Ownership, Division and Management Law
المادة 10 من نظام ملكية الوحدات العقارية وفرزها وإدارتها · الفصل الثالث: أحكام الملكية
The article sets how compensation is distributed when shared property or part of it is expropriated for the public interest: to each owner in proportion to the value of what he owns, or to the owner of the divided part if that is what is taken.
Official text (Arabic)
This article has not been amended since the law was issued.
دون إخلال بما تقضي به الأنظمة ذات الصلة، إذا اقتضت المصلحة العامة نزع ملكية العقار المشترك أو جزء منه، يكون التعويض لكل مالك بقدر نسبة قيمة ما يملكه من العقار المشترك، ويكون التعويض لصاحب الجزء المنزوع في حال كان المنزوع جزءاً مفرزاً من العقار المشترك.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 10 explained in plain English
This article deals with what happens if the State decides to expropriate the shared property or part of it for a public interest, and specifies who receives the compensation:
- If the shared property or part of it is expropriated: compensation goes to each owner in proportion to the value of what he owns of the shared property.
- If what is expropriated is a divided part: that is, a specific unit, the compensation goes to the owner of that expropriated part.
Note that the criterion the article adopts for distributing compensation is the proportion of value, not merely area.
The article begins with the phrase "without prejudice to what the relevant laws provide"; this means that the procedures for expropriation, how compensation is assessed and the like remain subject to the laws competent for them, and this article does not regulate them but is limited to stating how compensation is distributed among the owners of the shared property.
Because expropriation and compensation matters may involve special assessments and procedures, a person affected by them would do well to consult a lawyer specialized in real estate matters.
Practical example
A decision was issued to expropriate part of the common parts of a building in Riyadh to widen a road. Compensation is distributed to the owners, each in proportion to the value of what he owns of the shared property. But if what is expropriated is a divided commercial shop owned solely by Salman, the compensation goes to Salman.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 10 of the Saudi Real Estate Unit Ownership, Division and Management Law
How is compensation for expropriating a building distributed among the owners?
Compensation goes to each owner in proportion to the value of what he owns of the shared property.
Who gets the compensation if my apartment alone is expropriated?
If what is expropriated is a divided part of the shared property, the compensation goes to the owner of the expropriated part.
Does this article regulate the expropriation procedures?
No. It applies without prejudice to what the relevant laws provide, and is limited to stating how compensation is distributed.
More articles on Common Areas and Owners' Rights
- Article 1
The article defines the Law's basic terms, such as division, the divided real estate unit, common parts, the shared property, the real estate complex, the owners' association, the manager and maintenance.
يقصد بالكلمات والعبارات الآتية - أينما وردت في هذا النظام - المعاني المبينة أمام كل منها، ما لم يقتض السياق غير ذلك: النظام: نظام ملكية الوحدات العقارية وفرزها
- Article 7
The article provides that unit owners are partners in the common parts, regulates ownership of dividing walls and ceilings, sets each owner's share by the area of his unit, and attaches the share to the unit in dispositions.
1- يكون ملاك الوحدات العقارية المفرزة في عقار مشترك واحد شركاء في الأجزاء المشتركة، وإذا تعدد ملاك وحدة عقارية مفرزة فإنهم يعدون جميعاً شركاء على الشيوع في ملكي
- Article 8
The article provides that disposing of each divided unit is independent of the others, and that the owner may use his unit in a way that does not conflict with its designated use.
1- يكون التصرف في جميع الوحدات العقارية المفرزة أو بعضها باعتبار كل وحدة منها مستقلة عن الأخرى. 2- لكل مالك الحق في أن ينتفع بوحدته العقارية المفرزة، بما لا يتع
- Article 9
The article bars an owner from going too far in using his unit or the common parts to the detriment of his neighbor, allows a request to remove abnormal harm, and prohibits harming the structure or facades or obstructing the common parts.
1- على كل مالك وفقاً لأحكام النظام، ألا يغلو في استعمال حقه في الانتفاع بوحدته العقارية المفرزة أو بالأجزاء المشتركة إلى الحد الذي يضر بجاره، وليس للجار أن يرجع
- Article 14
The article provides that the owners' association represents the owners in dispositions arising on the common parts.
تعد جمعية الملاك ممثلةً للملاك فيما يتعلق بالتصرفات التي تنشأ على الأجزاء المشتركة.
- Article 16
The article bars the owners' association from limiting or restricting the owner's rights to dispose of his unit or use it or the common parts within their purposes and without harming the other owners.
ليس لجمعية الملاك أن تحد أو أن تقيد من حقوق المالك في التصرف بوحدته العقارية المفرزة، أو في الانتفاع بها، أو بالأجزاء المشتركة في حدود الأغراض التي أعدت من أجله
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.