Article 18 of the Saudi Real Estate Unit Ownership, Division and Management Law
المادة 18 من نظام ملكية الوحدات العقارية وفرزها وإدارتها · الفصل الرابع: جمعية الملاك
The article governs the owners' association general assembly: its composition, powers, chair, meeting times, and the quorum of three quarters of the area for decisions, with the Authority's representative able to attend.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تكون لجمعية الملاك جمعية عامة تتكون من جميع الملاك.
2- تختص الجمعية العامة بجميع الأمور المتعلقة بجمعية الملاك، ولها على وجه الخصوص الآتي:
أ- الاطلاع على تقرير المدير المتعلق بإدارة العقار المشترك وجمعية الملاك ومركزها المالي خلال السنة المالية، وتقرير مراجع الحسابات إن وجد، واعتمادهما.
ب- مناقشة الميزانية السنوية لجمعية الملاك واعتمادها.
ج- تعيين المدير ومراجع الحسابات، وتحديد أجورهما.
د- إبراء ذمة المدير.
هـ- تعديل النظام الأساسي.
3- تنتخب الجمعية العامة رئيساً لها من بين أعضائها يتولى رئاسة اجتماعاتها ومتابعة قراراتها، وتكون مدة رئاسته (ثلاث) سنوات قابلة للتجديد.
4- تعقد الجمعية العامة بدعوة من رئيسها وفقاً للقواعد التي يحددها النظام الأساسي، على أن تعقد مرة على الأقل في السنة خلال الشهور (الثلاثة) التالية لنهاية السنة المالية لجمعية الملاك.
5- يجوز دعوة الجمعية العامة للانعقاد في أي وقت بناءً على طلب المدير أو مراجع الحسابات - إن وجد - أو عدد من الملاك يمثل نصف إجمالي عدد الوحدات العقارية المفرزة في العقار المشترك على الأقل.
6- تكون قرارات الجمعية العامة صحيحة إذا وافق عليها عدد من الملاك تمثل نسبة ملكيتهم (ثلاثة أرباع) إجمالي مساحة الوحدات العقارية المفرزة على الأقل، ما لم ينص النظام الأساسي على نسبة أعلى من ذلك. وفي حال كانت مساحة حصة أحد الملاك تزيد على النصف، أنقص عدد ما له من أصوات إلى ما يساوي النصف.
7- للهيئة أن توفد مندوباً - أو أكثر - لحضور اجتماعات الجمعيات العامة؛ للتأكد من تطبيق أحكام النظام.
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 18 explained in plain English
This article governs the general assembly, the supreme body of the owners' association:
- Composition: It consists of all the owners.
- Powers: It is competent for all the association's affairs, and in particular: reviewing and approving the manager's report on managing the property and the financial position and the auditor's report if any, discussing and approving the annual budget, appointing the manager and the auditor and setting their fees, discharging the manager, and amending the articles of association.
- Chair: It elects from among its members a chair who presides over its meetings and follows up its decisions, for 3 years, renewable.
- Ordinary meeting: On the call of its chair under the rules of the articles of association, at least once a year within the 3 months following the end of the financial year.
- Meeting at any time: At the request of the manager, or the auditor if any, or owners representing at least half of the total number of units.
- Quorum for decisions: Decisions are valid if approved by owners whose ownership represents at least three quarters of the total area of the units, unless the articles of association provide a higher percentage. If the share of one owner exceeds one half, his votes are reduced to the equivalent of one half, so a large owner cannot decide alone.
- The Authority's oversight: The Authority may send one or more representatives to attend the meetings to ensure the Law is applied.
Article 17 complements these provisions by requiring partners in a single unit to choose a representative, and Article 19 shows that the manager manages the property and the articles of association set the rules for appointing him, subject to the general assembly's powers. In case of a dispute over the validity of a decision, a person may consult a lawyer specialized in real estate matters.
Practical example
In a building in Jeddah where the total area of the units is 2000 meters, one owner holds units of 1200 meters (60%). When voting, his votes are reduced to the equivalent of one half, so his vote alone is not enough to reach the required three quarters, and other owners must join to pass the decision.
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 18 of the Saudi Real Estate Unit Ownership, Division and Management Law
What voting percentage is required for owners' association decisions?
Approval by owners whose ownership represents at least three quarters of the total area of the divided units, unless the articles of association provide a higher percentage.
How often does the general assembly of the owners' association meet?
At least once a year within the three months following the end of the financial year, and it may be called at any time at the request of the manager, the auditor or owners representing half of the number of units.
How long is the term of the general assembly's chair?
3 years, renewable.
Can an owner who holds more than half the building control the decisions?
No. If the share of one owner exceeds one half, his votes are reduced to the equivalent of one half.
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 12
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.
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
- 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
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.