Article 19 of the Saudi Real Estate Unit Ownership, Division and Management Law

This article deals with the manager of the shared property, who handles day-to-day management, in five paragraphs:

1. Who the manager is: The shared property is managed by a manager who may be an owner or an outsider; the bylaws set the rules for appointing the manager and how the manager works.
2. Powers: The bylaws define them, subject to the powers of the general assembly. The association is bound by every act the manager performs in its name and within its purposes.
3. Delegation: By a written decision, the manager may delegate some of his powers to another person for a specific task or tasks.
4. The builder's right: The owner who built the shared property may appoint the manager alone, provided he keeps ownership of at least 10% of the number of units and complies with the conditions set by the Implementing Regulations.
5. Liability: The manager is liable to compensate the association or the owners for damage resulting from violating the provisions of the Law or the bylaws. Where there are several managers:
   • They are all liable if the damage results from a decision they made unanimously.
   • For decisions made by majority, a dissenting manager is not liable if he expressly recorded his objection in the minutes of the meeting.
   • Absence does not relieve a manager of liability unless it is proven that the absent manager did not know of the decision or could not object after learning of it.

Article 18 provides that the general assembly appoints the manager, sets his pay, discharges him and approves his report, while Article 20 requires the manager to prepare the draft annual budget and the financial statements. Anyone harmed by the manager's actions would do well to consult a lawyer who specializes in real estate disputes.