Saudi General Real Estate Authority sets laws for Owners Association
The system aims to better manage jointly-owned real estate; resolve disputes; facilitate O&M; and increase property life
Saudi Arabia’s General Real Estate Authority has issued a guiding law for the owners’ associations and complex societies, which share certain basic provisions. The law clarifies the system of real estate ownership, joint ownership, sorting, management, and implementing of regulations.
The General Real Estate Authority has called on the owners of real estate units detached in a common property or their representatives to submit to the authority a request to register their Owners Association as soon as it is established, and before the expiration of 30 days from the date of incorporation.
In addition, the owners of real estate units may apply to the authority for registration, while the owners of real estate complexes may apply to the commission to register the complex society, once it is established.
The executive regulations specify that provisions must be made to include: the rules for the work of the general assembly and the director; the rules for the use and management of the common parts; the rules to determine the amount of the owners ’contributions to be paid to manage the association and the operation of the property; and rules to determine the beginning and end of the financial year for the owners’ association.
The pilot system aims to improve the management of jointly-owned real estate; promote a culture of coexistence; resolve disputes between owners; facilitate maintenance and operation work; and improve the sustainability and life of the property, according to the state-run Saudi Press Agency.