Owners Association. Under the microscope of law and order
Lawyer Mohammed Khayat
The implementation of the owners“ association system ensures the sustainability of the property and the sustainability of the quality of the common areas and preserving them by performing periodic, preventive and necessary maintenance in addition to introducing some matters to develop the property in general, as by maintaining the property and the common areas in it directly affects the value of the property.
The reluctance of some owners to register
The application of governance in the management of the property is one of the most prominent features of the owners” association system, as the unit owner knows the amount of service and maintenance fees incurred by him and the mechanism for dividing and disbursing them, and this is an important factor to remove any confusion or fear for the buyer of the property later and thus indirectly affects the value of the property.Due to the development of the property and the common areas, some owners are reluctant to register. Due to the novelty of the system in the Kingdom of Saudi Arabia and the lack of spread of the culture of shared real estate and owners' associations among members of society, we managers of shared real estate face the reluctance of some owners of real estate units to register the real estate units owned by them, which delays the establishment of the association and start practicing its duties and obligations stipulated by law, and we also face difficulty in establishing a bank account in the name of the owners' association, which may take several months to establish.
Also, we face difficulty in establishing a bank account in the name of the owners' association, which may take several months.
Amendments to a subdivided real estate unit
a. Notify the unit owner sufficiently in advance of the commencement of the work, including the type of work and the time limit for its completion.
B. <(b) Restore the condition of the unit to the status quo ante immediately upon completion of the works. <Without prejudice to the obligations of the unit owner established in the Law, the Regulations and the Articles of Association, the unit owner shall not bear any additional costs arising from the execution of such works, except to the extent that he is responsible for the damage to the common property. The unit owner shall be compensated, if necessary, for the damage resulting from the evacuation of the unit at the time of carrying out the works, in proportion to the similar rent for that unit, and the compensation shall include any additional costs incurred by the unit owner or occupant during the stay in an alternative place, in accordance with (M/36) of the Executive Regulations of the Real Estate Unit Ownership, Sorting and Management System.
Registration of Owners Associations
<As for penalties, the law and its executive regulations do not provide penalties for those who do not establish an association of owners of real estate units, although the law stipulates that "if the owners of real estate units sorted in a common property reach three or more, they must establish an association among them to manage the affairs of that property, and register that association with the Public Authority for Real Estate ...." (M/12) Real Estate Unit Ownership, Sorting and Management Law, it is inferred from the text of the law that the legislator is obliged to establish an owners' association for common properties when the number of sorted units reaches three or more.Consequently, in the absence of the establishment of an owners' association, it is difficult to oblige the owner to pay service and maintenance fees, on the other hand, when an owners' association is established according to the law, the association enjoys independent legal personality and has an independent financial liability based on (M/2/12) of the law, thus enabling the property manager in the owners' association to demand unit owners to pay service and maintenance fees judicially and collect the amount by force of arms.
The legislator has enabled the property manager in the owners' association to demand unit owners to pay service and maintenance fees judicially and collect the amount by force of arms.
Link the association with government agencies
We wish to link the owners' association with all governmental and service sectors, and enable it, for example, to transfer the ownership of water and electricity meters for common areas to be in the name and under the responsibility of the owners' association, in addition to enabling it to issue labor visas and transfer sponsorship to and from the owners' association by virtue of its legal personality.We wish to link the owners' association with all governmental and service sectors, and enable it to transfer the ownership of water and electricity meters for common areas to the name and responsibility of the owners' association. In addition to linking the association to the Ministry of Justice to easily and effectively fetch the data of unit owners in the common property and oblige them to register with the association, in addition to allowing the use of service and maintenance fee invoices issued by the association as an executive document to facilitate procedures and shorten the litigation period.
What is important is to link the association to the Ministry of Justice to facilitate procedures and shorten the litigation period.
