Article 23 of the Saudi Real Estate Unit Ownership, Division and Management Law
المادة 23 من نظام ملكية الوحدات العقارية وفرزها وإدارتها · الفصل الرابع: جمعية الملاك
The article keeps the owner of a leased unit bound toward the owners association and third parties unless he agrees otherwise with the tenant, and lets tenants under leases longer than 5 years agree with the owner to form an association.
Official text (Arabic)
This article has not been amended since the law was issued.
1- في حالة تأجير الوحدة العقارية المفرزة، يظل المالك ملزماً أمام جمعية الملاك والغير بجميع الحقوق والواجبات المتعلقة بالوحدة العقارية المفرزة وبالأجزاء المشتركة، ما لم يتفق مع المستأجر على غير ذلك.
2- يجوز للمستأجرين في عقار مملوك لمالك واحد، وتزيد عقود تأجيرهم على (خمس) سنوات، الاتفاق مع المالك على تأسيس جمعية ملاك وفقاً لأحكام هذا الفصل، وإدارته وصيانته وفقاً لأحكام الفصل (الخامس) من 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 23 explained in plain English
This article deals with the relationship between leasing and the owners association in two cases:
First case: leasing a separate unit. If an owner leases his unit, he remains bound toward the owners association and toward third parties by all the rights and duties relating to the unit and the common parts. Leasing does not automatically transfer these obligations to the tenant. But the owner may agree otherwise with the tenant, for example that the tenant bears some of these obligations.
Second case: a property owned by a single owner. Tenants in a property owned by a single owner, if their leases run longer than 5 years, may agree with the owner to:
- Form an owners association in accordance with the provisions of the chapter on the owners association.
- Manage and maintain the property in accordance with the provisions of Chapter Five of the Law.
This provision is optional and rests on agreement with the owner; under this article, tenants cannot impose it on him.
This article connects to Article 24, which requires every owner to pay his contribution to the costs of managing the shared property and maintaining the common parts, and prevents him from giving up his share in the common parts to avoid these costs. Since the owner remains bound after leasing, the contribution stays with him unless he agrees otherwise with the tenant.
To draft lease terms on these obligations, it is advisable to use a lawyer who specializes in real estate disputes.
Practical example
Yusuf leased his separate apartment in Riyadh for two years, and the contract contained no term on owners association contributions. Yusuf remains bound toward the association to pay the contribution and all other obligations relating to the apartment and the common parts. But if the contract provides that the tenant bears them, that agreement is applied.
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 23 of the Saudi Real Estate Unit Ownership, Division and Management Law
Who pays the owners association contribution if the apartment is leased?
The owner remains bound toward the owners association and third parties by all rights and duties relating to the unit and the common parts, unless he agrees otherwise with the tenant.
Can tenants form an owners association?
Tenants in a property owned by a single owner, if their leases run longer than 5 years, may agree with the owner to form an owners association.
Can the owner pass the association fees on to the tenant?
Yes, if he agrees with the tenant on that, since the article keeps the obligation with the owner unless he agrees otherwise with the tenant.
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.