Owners Association
Synonyms: Homeowners Association، HOA، Mullak، Strata Corporation
Last updated: 2026-08-04
Short Definition
An association that must be established among owners of separated units in a shared property once they reach three or more, under the Law of Ownership, Subdivision and Management of Real Estate Units issued by Royal Decree M/85 dated 02/07/1441H.
Overview
Legal Basis
Owners associations rest on the Law of Ownership, Subdivision and Management of Real Estate Units issued by Royal Decree M/85 dated 02/07/1441H, whose Article 12 requires establishing an association among owners of separated units in a shared property once owners reach three or more. The Real Estate General Authority has issued indicative bylaws for owners and complex associations. Registration requires details of separated unit owners and their representatives if any, details of the shared property or complex including the national address and deed number, and the names of general assembly members at registration. Services are managed through the Authority Mullak program. The Saudi Real Estate Arbitration Center hears cases arising from the owners associations program.
Practical Example
A residential building in Jeddah has 12 separated units owned by 9 owners. Since owners exceed three, establishing an association became mandatory under Article 12 of the Law of Ownership, Subdivision and Management of Real Estate Units. The association was registered through the Mullak program with owner details, the property deed number and national address. The general assembly voted an annual common parts budget of SAR 96,000 covering lift maintenance, cleaning, security and corridor lighting, distributed across units at an average SAR 8,000 per unit a year, or SAR 667 a month. A new buyer of one unit became bound by the bylaws and assembly decisions upon acquisition, so he reviewed the set fees before contracting.
Common Mistakes
- ✗Ignoring the obligation to establish an association despite owners reaching three or more, when the law requires establishment in that case.
- ✗Buying a unit without reviewing the association bylaws and set fees, when owning a unit constitutes acceptance of the bylaws and commitment to general assembly decisions.
- ✗Confusing common parts with the separated unit, when common parts are defined by law and include the land, entrances, corridors, parking, lifts and gardens.
- ✗Collecting fees not approved by a general assembly vote, when the platform displays subscription fees that have been voted on.
- ✗Using the term owners union in official dealings, when the recognised term with the Authority is owners association under the Mullak program.
International Differences
In the UAE, Dubai jointly owned property law regulates owners associations and management companies under Land Department supervision, with annually approved service charges. In Turkey, the Condominium Law regulates management of shared buildings through the owners board and an appointed manager, with a mandatory annual meeting and approved budget. In Egypt, occupants unions regulate shared property management, but practical application varies and is largely customary. The Saudi model differs in making establishment mandatory once owners reach three, managing the framework digitally through the Real Estate General Authority Mullak program, with a dedicated arbitration and settlement track for disputes.