Article 12 of the Saudi Real Estate Unit Ownership, Division and Management Law
المادة 12 من نظام ملكية الوحدات العقارية وفرزها وإدارتها · الفصل الرابع: جمعية الملاك
The article requires owners of shared property, when there are 3 or more, to form an owners' association and register it with the Authority, gives it legal personality and a separate financial liability, and requires articles of association.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا بلغ عدد ملاك الوحدات العقارية المفرزة في عقار مشترك ثلاثة فأكثر؛ فعليهم أن يؤسسوا جمعية بينهم لإدارة شؤون ذلك العقار، وتسجيل تلك الجمعية لدى الهيئة، وإذا كان بيع الوحدة العقارية المفرزة على الخارطة فيكون تسجيل جمعية الملاك اعتباراً من تاريخ البدء في تسليم ثاني وحدة عقارية مفرزة.
2- تتمتع جمعية الملاك بالشخصية المعنوية المستقلة - بعد تسجيلها وفق أحكام النظام - وتكون لها ذمة مالية مستقلة.
3- تتولى الهيئة تسجيل جمعيات الملاك، وتنظيم أعمالها، وتحدد اللائحة الإجراءات اللازمة لذلك. وللهيئة إسناد بعض أنشطتها في هذا الخصوص إلى القطاع الخاص.
4- يكون لكل جمعية ملاك نظام أساسي لضمان حسن الانتفاع بالعقار المشترك وحسن إدارته بما لا يتعارض مع أحكام النظام، ويعد توافره شرطاً لتسجيل الجمعية. وتحدد اللائحة الأحكام الواجب توافرها فيه، على أن تشمل تلك الأحكام ما يلي:
أ- قواعد عمل الجمعية العامة والمدير.
ب- الأحكام المتعلقة باستعمال الأجزاء المشتركة وإدارتها.
ج- قواعد تحديد مبلغ اشتراكات الملاك المطلوب سدادها لإدارة العقار المشترك وصيانة الأجزاء المشتركة.
د- تحديد بداية السنة المالية لجمعية الملاك ونهايتها، وقواعد الصرف من ميزانية الجمعية، وأساليب المراقبة المالية.
هـ- القواعد التي تتبع عند انقضاء جمعية الملاك، وإجراءات تصفيته.
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 12 explained in plain English
This article is the foundation of owners' associations, and contains four provisions:
- When formation is required: If the number of owners of divided units in a shared property reaches 3 or more, they must form an association to manage the property's affairs and register it with the General Authority for Real Estate. In the case of sale off plan, registration is from the date delivery of the second unit begins.
- Legal personality: After registration, the association enjoys independent legal personality and a financial liability separate from the owners.
- The Authority's role: The Authority registers associations and regulates their work, the Regulations set the procedures, and the Authority may assign some of its activities to the private sector.
- Articles of association: Every association has articles of association to ensure proper use and management of the property, and having them is a condition of registration. The Regulations set their provisions, and they must include:
- The rules of work of the general assembly and the manager.
- The provisions on using and managing the common parts.
- The rules for determining owners' contributions to managing the property and maintaining the common parts.
- The start and end of the financial year, the rules for expenditure, and methods of financial oversight.
- The rules for the association's dissolution and the procedures for its liquidation.
Article 13 adds the possibility of forming a "complex association" for shared properties within a real estate complex, including representatives of the owners' associations in it. To inquire about the position of a particular property, a person may consult a lawyer specialized in real estate matters.
Practical example
A building in Riyadh has 12 apartments owned by 5 different owners. Since the number of owners exceeds 3, they must form an owners' association and register it with the General Authority for Real Estate, preparing articles of association that set the association's rules of work, the owners' contributions and its financial year. After registration, the association has a separate financial liability.
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 12 of the Saudi Real Estate Unit Ownership, Division and Management Law
When must an owners' association be formed in a building?
When the number of owners of divided units in the shared property reaches 3 or more, and it must be registered with the General Authority for Real Estate.
When is the owners' association registered in off-plan sale projects?
Registration is from the date delivery of the second divided real estate unit begins.
Can the association be registered without articles of association?
No. Having articles of association is a condition of registering the association.
Does the owners' association have a separate financial liability?
Yes. After registration it enjoys independent legal personality and a separate financial liability.
More articles on Owners' Association
- 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 3
The article allows re-dividing the shared property or changing its use with the approval of the general assembly and any mortgagee, with the plan amended, and sets owners' shares in what results from the change.
1- يجوز إعادة فرز العقار المشترك أو جزء منه أو تغيير استعمالاته؛ بعد موافقة الجمعية العامة، وموافقة المرتهن إن وجد. ولا يخل ذلك بحق المتضرر في اللجوء إلى المحكم
- Article 13
The article allows owners of shared properties within a real estate complex to form a "complex association" with independent legal personality, made up of representatives of the owners' associations, to which the owners' association provisions apply as consistent with its nature.
1- للملاك في العقارات المشتركة التي تقع ضمن مجمع عقاري إنشاء جمعية ذات شخصية معنوية مستقلة تسمى (جمعية المجمع)، تضم ممثلاً أو أكثر عن جمعية الملاك في كل عقار مش
- 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 15
The article provides that owning a divided unit in a shared property that has an owners' association is acceptance of its articles of association and a commitment to the general assembly's decisions, without prejudice to Article 6.
دون إخلال بحكم المادة (السادسة) من النظام، يعد امتلاك وحدة عقارية مفرزة في عقار مشترك - مؤسس له جمعية ملاك - قبولاً من المالك بالنظام الأساسي، والتزاماً منه بال
- 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.