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Definitions
 Article One:
The following words and expressions – wherever they appear in this Law – shall have the meanings set forth opposite each of them, unless the context requires otherwise:
Law:  The Real Estate Unit Ownership, Subdivision and Management Law. Regulations: The Implementing Regulations of the Law.
Authority: The Real Estate General Authority (REGA).
Owner: A natural or legal person who owns one or more subdivided real estate units.
Land: Real estate designated for the construction of one or more buildings thereon with their associated facilities and services, having completed all approved statutory procedures.
Subdivision: A procedure whereby real estate with a constructed building is divided into independent units for the purpose of disposing of each unit separately. Subdivided Real Estate Unit: 
The designated part of shared property that entitles its owner to benefit from it and dispose of it independently of other parts of the property. This includes houses, apartments, floors, commercial premises, garages, or any part of a shared property or real estate complex that may be owned, used, or disposed of independently.
Common Areas: Parts of a shared property or real estate complex designated for common use, or whose nature requires shared ownership among owners of subdivided real estate units. These include, without limitation: land, entrances, corridors, parking areas, tanks, pipelines, utility services, swimming pools, gardens, courtyards, elevators, and similar facilities.
Shared Property: Property consisting of subdivided real estate units and common areas. Real Estate Complex: A group of shared properties of either single or multiple uses, located within a specified geographical area and interconnected through common areas.
Owners Association: An entity established by owners – or their representatives – within a shared property for the purpose of managing all affairs of that property, in accordance with the provisions of the Law and the bylaws.
Bylaws: The bylaws of the owners association.
Budget: The annual budget of the owners association for managing the shared property.
General Assembly: The general assembly of the owners association.
Manager: The natural or legal person(s) appointed to manage a shared property or real estate complex.
Maintenance: All works necessary to preserve the shared property or real estate complex and maintain their utility. 
Article Two:
1. Every landowner holding a title deed that meets Sharia and statutory requirements may construct a building on the land and subdivide it into independent units, and a title deed may be issued for each subdivided real estate unit, in accordance with the approved statutory procedures.
2. Subdivided real estate units in a shared property shall be numbered sequentially so that no number is duplicated for two subdivided units within the same shared property.
Article Three:
1. Re-subdivision of a shared property or part thereof, or changing its uses, shall be permissible after approval by the general assembly and the mortgagee, if any, without prejudice to the right of any aggrieved party to resort to the competent court.
2. The shared property plan must be amended to reflect the re-subdivision or change of use, subject to the approval of the competent authorities.
3. If any change occurs to the shared property, all owners shall be partners in the outcome of such change, each according to the ratio of their subdivided real estate unit’s area to the total area of subdivided real estate units, as stated in the document issued by the Authority certifying the subdivision.
Owners may agree to consider the value and area of the subdivided real estate unit when determining each owner’s share in the outcome of such change.
Article Four:
The Authority shall certify subdivision and re-subdivision, and the Regulations shall specify the necessary procedures for such certification. The Authority may assign certain activities in this regard to the private sector.
Article Five:
1. Partners constructing shared property must include in the partnership contract the names of partners with in-kind and monetary shares, a description of the land designated for construction, the title deed number, its date and source, and the obligations and rights of the partners.
2. Partners in shared property may divide their undivided shares therein so that each partner holds one or more subdivided real estate units. If they fail to reach an agreement on division, the party requesting division may resort to the competent court.
Article Six:
1. The owner must disclose, in a statement, to any prospective purchaser of their subdivided real estate unit, all information regarding its specifications, annexes, and all rights and obligations associated with it. The statement must include a sufficient description of the shared property, its contents, management, and ownership organization. The prospective purchaser must also be notified of any changes to such information before concluding the sale contract. This information shall constitute an integral part of the sale contract. The Regulations shall specify the detailed provisions governing this matter.
2. If the disclosure statement fails to include information that must be disclosed pursuant to paragraph (1) of this Article, the purchaser shall have the right to rescind the sale contract within thirty (30) days from the date of signing it or from the date of becoming aware of such information, if the information is material and its concealment has caused harm or has rendered the subdivided real estate unit unfit for the purpose for which it was purchased. The purchaser shall not bear any costs arising from the rescission of the contract.
Article Seven:
1. Owners of subdivided real estate units in a single shared property shall be co-owners of the common areas. Where a subdivided real estate unit is jointly owned by multiple persons, all of them shall be deemed co-owners of the common areas. In all cases, owners may agree otherwise.
2. Ownership of side barriers, walls, floors, and ceilings between two adjacent subdivided real estate units shall be shared between their owners, unless a structural separator exists between them or evidence proves otherwise. No owner may use their designated part in a way that harms another owner or other co-owners.
3. Common areas whose benefit is exclusive to certain owners shall be jointly owned among them, unless agreed otherwise.
4. Each owner’s share in the common areas shall, where indivisible, constitute an undivided part that is fully attached to their subdivided real estate unit in all statutory transactions related to the unit, unless agreed otherwise.
5. Each owner’s share in the common areas shall equal the ratio of the area of their subdivided real estate unit to the total area of all subdivided real estate units as recorded in the document issued by the Authority approving the subdivision, or in the building permit of the shared property in cases of off-plan sales. The owners may also agree to take into account the value and area of the subdivided unit when determining each share.
Article Eight:
1. The disposition of all or some subdivided real estate units shall be considered with each unit treated as independent from the others.
2. Each owner shall have the right to use their subdivided real estate unit in a manner that does not conflict with its designated purpose.
Article Nine:
1. Each owner, pursuant to the provisions of this Law, must not abuse their right to use their subdivided real estate unit or the common areas to the extent that it causes harm to a neighbor. A neighbor may not claim damages for ordinary and unavoidable neighborhood nuisances but may request the removal of such nuisances if they exceed the ordinary, taking into account public morals, prevailing customs, the nature of the property, the location of each subdivided real estate unit relative to others, and the intended purpose of each unit.
2. No owner may carry out any action that could damage the structural framework or affect the façades, nor may they use the common areas for purposes other than those designated for them, or obstruct their use with obstacles that hinder proper access or usage.
Article Ten:
Without prejudice to applicable laws, if public interest requires the expropriation of the shared property or part thereof, each owner shall be compensated according to the ratio of the value of their ownership in the shared property. Compensation shall be paid to the owner of the expropriated part if such part is a subdivided portion of the shared property.
Article Eleven:
Ownership transfer procedures shall be carried out before the competent authorities responsible for the authentication of contracts and declarations and the issuance of related title deeds, in accordance with approved statutory procedures.
Article Twelve:
1. If the number of owners of subdivided real estate units in a shared property reaches three (3) or more, they must establish an association to manage the affairs of that property and register such association with the Authority. If a subdivided real estate unit is sold off-plan, the registration of the owners association shall be effective from the date of commencement of delivery of the second subdivided real estate unit.
2. The owners association shall enjoy independent legal personality, once registered in accordance with the provisions of this Law, and shall have independent financial liability.
3. The Authority shall undertake the registration of owners associations, regulate their activities, and determine the procedures required for such registration through the Regulations. The Authority may delegate some of its activities in this regard to the private sector.
4. Each owners association shall have bylaws to ensure proper utilization and sound management of the shared property in a manner not conflicting with the provisions of this Law. The existence of such bylaws shall be a prerequisite for registering the association. The Regulations shall specify the provisions required therein, which shall include the following:
a. Rules governing the operation of the general assembly and the manager.
b. Provisions related to the use and management of common areas.
c. Rules for determining the subscription amounts payable by the owners for managing the shared property and maintaining common areas.
d. Determination of the beginning and end of the fiscal year of the owners association, the rules governing expenditure from the association’s budget, and the methods of financial oversight.
e. Rules governing the termination of the owners association and the procedures for its liquidation.
Article Thirteen:
1. Owners of shared properties located within a real estate complex may establish an association with independent legal personality, to be called the Complex Association, comprising one or more representatives from the owners association of each shared property within the real estate complex, or representatives of the owners themselves if no owners association has been established for that shared property.
2. The provisions governing owners associations shall apply to the Complex Association to the extent consistent with its nature.
Article Fourteen:
The owners association shall represent the owners with respect to dispositions related to the common areas.
Article Fifteen:
Without prejudice to the provisions of Article (Six) of this Law, ownership of a subdivided real estate unit in a shared property where an owners association has been established shall constitute acceptance by the owner of the bylaws and a commitment to comply with the decisions issued by the general assembly.
Article Sixteen:
The owners association shall not restrict or limit the rights of any owner to dispose of their subdivided real estate unit, or to use it, or to use the common areas within the purposes for which they were designated, provided this does not harm the other owners.
Article Seventeen:
If a subdivided real estate unit has multiple owners, they must select one of them to represent them in the general assembly. The decisions of the general assembly shall be binding on all co-owners of the subdivided real estate unit, each according to their ownership share in that unit.
Article Eighteen:
1. The owners association shall have a general assembly comprising all owners.
2. The general assembly shall have authority over all matters related to the owners association, including but not limited to the following:
a. Reviewing and approving the manager’s report on the management of the shared property, the owners association, and its financial position during the fiscal year, as well as the auditor’s report, if any.
b. Discussing and approving the annual budget of the owners association.
c. Appointing the manager and auditor, and determining their remuneration.
d. Discharging the manager.
e. Amending the bylaws.
3. The general assembly shall elect a president from among its members to chair its meetings and follow up on its decisions, for a term of three (3) years, renewable.
4. The general assembly shall convene upon invitation by its president, in accordance with the rules set forth in the bylaws, and shall meet at least once a year during the three (3) months following the end of the association’s fiscal year.
5. The general assembly may be convened at any time at the request of the manager, the auditor (if any), or a group of owners representing at least half the total number of subdivided real estate units in the shared property.
6. Decisions of the general assembly shall be valid if approved by owners representing at least three-quarters (¾) of the total area of the subdivided real estate units, unless the bylaws stipulate a higher percentage. If an owner’s share of the total area exceeds half, their voting rights shall be reduced to equal half.
7. The Authority may send one or more delegates to attend meetings of the general assemblies to ensure compliance with the provisions of this Law.
Article Nineteen:
1. Shared property shall be managed by a manager, whether selected from among the owners or from others, with the bylaws specifying the rules for their appointment and the method of their work.
2. Without prejudice to the powers granted to the general assembly, the bylaws shall define the manager’s powers in managing the shared property. The owners association shall be bound by every disposition made by the manager in the name of the association and within its purposes.
3. The manager may, by a written decision, delegate some of their powers to others to carry out specific work or tasks.
4. The owner who constructed the shared property may unilaterally appoint the manager, provided they:
a. Maintain ownership of not less than ten percent (10%) of the total number of subdivided real estate units in the shared property. b. Comply with the conditions stipulated in the Regulations.
5. The manager shall be liable to compensate the owners association or the owners for any damage resulting from their violation of the provisions of the Law or the bylaws. All managers, if there are multiple managers, shall be jointly liable if such damage arises from a unanimous decision. As for decisions made by a majority vote, dissenting managers shall not be held liable if they have explicitly recorded their objection in the minutes of the meeting in which the decision was made. Absence from a meeting shall not exempt a manager from liability unless it is proven that the absent manager was unaware of the decision or unable to object to it after becoming aware of it.
Article Twenty:
1. The manager shall prepare a draft annual budget for the owners association, covering the costs of managing the shared property and maintaining common areas, for presentation to the general assembly for approval.
2. The fiscal year of the owners association shall be twelve (12) months, as defined in its bylaws. By exception, the first fiscal year may be set at not less than six (6) months and not more than eighteen (18) months, starting from the date of the association’s registration.
3.a. The manager shall, for each fiscal year, prepare financial statements for the owners association and a report on its activities and financial position, within three (3) months following the end of the fiscal year. The manager shall make these documents available to the auditor, if any, at least forty-five (45) days prior to the scheduled date of the general assembly meeting.
b. The manager shall provide the Authority and each owner with copies of the documents referred to in subparagraph (3/a) of this Article, as well as a copy of the auditor’s report, if any, within one (1) month from the date of their preparation.
Article Twenty-One:
Without prejudice to the provisions of relevant laws, decisions of the manager and contracts related to transactions entered into by them, within the powers granted under the Law, concerning the shared property or real estate complex, and after their approval by the Authority, shall constitute an enforcement instrument against the owners, in accordance with the provisions of the Enforcement Law. The Regulations shall specify the necessary procedures.
Article Twenty-Two:
1. In the cases specified by the Regulations, the owners association shall appoint an auditor licensed to practice in the Kingdom.
2. The auditor shall have the right, at any time, to examine the books, records, and other documents of the owners association, and may also request any data or clarifications deemed necessary. If the auditor encounters any difficulties in this regard, this shall be recorded in a report submitted to the general assembly.
3. The auditor shall prepare an annual report in accordance with recognized auditing standards and present it to the general assembly.
Article Twenty-Three:
1. In the event of leasing a subdivided real estate unit, the owner shall remain liable before the owners association and third parties for all rights and obligations related to the subdivided real estate unit and the common areas, unless otherwise agreed with the lessee.
2. Lessees in a property owned by a single owner, where lease agreements exceed five (5) years, may agree with the owner to establish an owners association in accordance with the provisions of this Chapter, and to manage and maintain the property in accordance with the provisions of Chapter Five of the Law.
Article Twenty-Four:
1. The resources of the owners association shall consist of:
a. Owner subscriptions.
b. Donations, gifts, bequests, and endowments.
c. Returns from investing the owners association’s funds and investable common areas. The Regulations shall specify the provisions governing subparagraphs (1/b) and (1/c) of this Article.
2. The funds of the owners association shall be used solely for managing the shared property and maintaining the common areas.
3. Each owner is obligated to pay their subscription amount toward the costs of managing the shared property and maintaining the common areas. No owner may relinquish their share in the common areas as a means to avoid contributing to their preservation or maintenance costs.
Article Twenty-Five:
The owners association shall be dissolved if the number of owners falls below the threshold required for its establishment, unless the remaining owners wish to continue the association in accordance with the provisions of the Law. Dissolution of the association shall not affect its liability for debts and obligations incurred prior to the date of its dissolution. 
Article Twenty-Six:
1. Each owner shall contribute to the costs of maintaining and managing the common areas in proportion to the area of their subdivided real estate unit relative to the total area of subdivided units in the shared property. The value of an owner’s contribution to such costs may vary depending on the type of use of their subdivided unit if the shared property is mixed-use.
2. Any owner, with the approval of the owners association, may at their own expense improve the utilization of the common areas or part thereof, provided this does not alter their designated use or cause harm to others.
Article Twenty-Seven:
1. The owner must perform the necessary maintenance of their subdivided real estate unit, even if it is not in use, to prevent harm to the shared property, and must not introduce anything within their unit that may cause damage to the shared property.
2. If it becomes necessary to carry out work inside any subdivided real estate unit to ensure the safety of the shared property or to enhance the use or maintenance of common areas, the owner of that unit may not object. The unit must be restored to its original condition immediately upon the completion of the necessary works, and the owner shall not bear any costs arising from this. The Regulations shall set out the relevant provisions.
Article Twenty-Eight:
The owners association shall manage the shared property in accordance with standards specified by the Regulations.
Article Twenty-Nine:
1. If the shared property is partially damaged, the owners must repair it as determined by the general assembly, unless otherwise agreed.
2. If the shared property collapses, the general assembly shall decide on the necessary measures. In case of disagreement, the matter shall be referred to the competent court.
Article Thirty:
1. No modification may be made to the external appearance of the shared property without the approval of the general assembly.
2. The approval of the general assembly shall be obtained prior to undertaking any work that would result in an increase in the value of all or part of the shared property. Such work shall be at the expense of the requesting owner(s) and subject to conditions set by the general assembly, including compensations and any additional obligations for the benefit of all owners. 
Article Thirty-One:
The Authority’s Board of Directors shall propose the Regulations, which shall be issued by a decision of the Minister of Housing within one hundred eighty (180) days from the date of issuance of this Law.
Article Thirty-Two:
This Law shall replace the Real Estate Unit Ownership and Subdivision Law issued by Royal Decree No. (M/5) dated 11/2/1423 Hijri and shall repeal all provisions that conflict with it.
Article Thirty-Three:
This Law shall enter into force one hundred eighty (180) days after its publication in the Official Gazette.