Article 22 of the Saudi Real Estate Unit Ownership, Division and Management Law
المادة 22 من نظام ملكية الوحدات العقارية وفرزها وإدارتها · الفصل الرابع: جمعية الملاك
The article requires the owners association to appoint a licensed auditor in the cases set by the Implementing Regulations, gives him the right to inspect its books and request information, and requires an annual report to the general assembly.
Official text (Arabic)
This article has not been amended since the law was issued.
1- على جمعية الملاك في الحالات التي تحددها اللائحة تعيين مراجع حسابات مرخص له بالعمل في المملكة.
2- لمراجع الحسابات - في أيّ وقت - حق الاطلاع على دفاتر جمعية الملاك وسجلاتها وغير ذلك من الوثائق، وله أيضاً طلب البيانات والإيضاحات التي يرى ضرورة الحصول عليها، وإذا صادف مراجع الحسابات صعوبة في هذا الشأن أثبت ذلك في تقرير يقدمه إلى الجمعية العامة.
3- يعد مراجع الحسابات تقريراً سنوياً وفق معايير المراجعة المتعارف عليها ويعرضه على الجمعية العامة.
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 22 explained in plain English
This article governs the auditor of the owners association, an independent financial oversight tool, in three paragraphs:
- When one is appointed: The owners association must appoint an auditor licensed to practice in the Kingdom, in the cases set by the Implementing Regulations. So not every association is required to do so by the text of this article; the Implementing Regulations must be consulted to know these cases.
- His powers: At any time, he may:
- Inspect the association's books, records and other documents.
- Request the data and clarifications he considers necessary.
- Annual report: He prepares an annual report in accordance with generally accepted auditing standards and presents it to the general assembly.
The importance of this oversight is clear in light of Article 21, which makes the manager's decisions and contracts relating to the shared property, once approved by the Authority, an enforceable instrument against the owners. An independent auditor who inspects the records and submits his report to the general assembly allows owners to follow the association's financial performance.
To ask whether these cases apply to a particular association, you can consult a lawyer who specializes in real estate disputes.
Practical example
An owners association for a residential complex in Jeddah falls under one of the cases set by the Implementing Regulations, so it appointed a licensed auditor. The auditor asked to inspect the maintenance contracts and their invoices, but the manager did not give him access. The auditor may record this difficulty in a report he submits to the general assembly.
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 22 of the Saudi Real Estate Unit Ownership, Division and Management Law
Is every owners association required to appoint an auditor?
The article requires the owners association to appoint a licensed auditor in the cases set by the Implementing Regulations.
What are the powers of the owners association's auditor?
At any time, he may inspect the association's books, records and documents, and request the data and clarifications he considers necessary.
What does the auditor do if he is denied access to the records?
He records the difficulty he encountered in a report that he submits to the general assembly.
More articles on Manager of Jointly Owned Property
- Article 18
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.
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 تقر
- Article 19
The article covers the manager of the shared property: appointment, powers and delegation, the builder's right to appoint alone on conditions, and liability for damages caused by violations.
1- يتولى إدارة العقار المشترك مدير من الملاك أو من غيرهم، ويحدد النظام الأساسي قواعد تعيينه وطريقة عمله. 2- مع مراعاة الاختصاصات المقررة للجمعية العامة، يحدد ال
- Article 20
The article requires the manager to prepare the draft annual budget, financial statements and annual report, sets the association's financial year and deadlines, and requires copies to go to the Authority and each owner.
1- يعد المدير مشروع ميزانية سنوية لجمعية الملاك يتضمن تكاليف إدارة العقار المشترك وصيانة الأجزاء المشتركة، تمهيداً لعرضه على الجمعية العامة لاعتماده. 2- تكون ال
- Article 21
The article makes the shared property manager's decisions and contracts, issued within his powers and approved by the Authority, an enforceable instrument against owners under the Enforcement Law.
دون إخلال بما تقضي به الأنظمة ذات الصلة، تكون قرارات المدير وعقود التعاملات التي يبرمها - وفقاً للصلاحيات المخولة له بموجب النظام - المتعلقة بالعقار المشترك أو
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.