Strata Title
Synonyms: Unit Title، Condominium Ownership، Sectional Title، Commonhold
Last updated: 2026-09-25
Short Definition
Strata title is a form of ownership in which each owner holds a separate unit in a jointly owned building, such as a flat, floor, shop or parking space, under its own title deed, plus an undivided share in the common parts such as the land, entrances, lifts and roof.
Overview
Legal Basis
Law of Ownership, Subdivision and Management of Real Estate Units issued by Royal Decree No. (M/85) dated 2/7/1441H and Council of Ministers Resolution No. (440) dated 1/7/1441H, replacing the 1423H law: Article 2 (subdivision and a deed for each unit), Article 4 (REGA approves subdivision), Article 6 (disclosure statement and 30-day rescission right), Article 7 (share in common parts), Article 12 (owners' association for three or more owners, registered with REGA), Article 18 (three-quarters-of-area quorum), Article 21 (manager decisions approved by REGA are enforceable instruments) and Article 24 (mandatory contributions). Real Estate Registration Law issued by Royal Decree No. (M/91) dated 19/9/1443H, Article 28.
Practical Example
A building in Jeddah has 12 subdivided flats with separate deeds and a total area of 1,800 m². Reem owns a 150 m² flat, so her share in the common parts is 150 ÷ 1,800 = 8.33%. The general assembly of the registered owners' association approves an annual budget of SAR 72,000 for cleaning, security and lift maintenance, so Reem's share is SAR 6,000 a year (8.33%). When the association decides to replace the lifts at a cost of SAR 180,000, the decision is valid because the owners in favour hold 1,400 m² of the 1,800 m² (77.8%), more than three quarters of the area. One owner refuses to pay, arguing he does not use the lift, but the law obliges every owner to contribute and does not allow him to abandon his share to avoid it, and the manager's REGA-approved decisions are enforceable against him.
Common Mistakes
- ✗Buying a flat in an unsubdivided building under an informal contract without a separate unit deed, leaving the buyer without an independent unit that can be registered or mortgaged.
- ✗Not forming an owners' association despite having three or more owners, leaving common parts without lawful management or a budget.
- ✗Assuming that an owner who does not use a shared service (such as the lift) is exempt from its costs, although every owner must contribute according to his share.
- ✗Taking common parts such as the roof or parking for private use, or altering the façade without approval, which the law prohibits.
- ✗Not asking for the disclosure statement when buying, although it sets out the unit's rights and obligations and gives the buyer a right of rescission for material omissions.
International Differences
Similar systems exist in most countries under different names: strata title in Australia and Singapore, condominium in the US and Canada, and commonhold in England, although leasehold remains the most common form for flats there. In Turkey it is governed by the Condominium Law (Kat Mülkiyeti Kanunu), with management through an owners' board and a manager. In the UAE, each emirate's jointly owned property laws provide for owners' associations and service charges. The Saudi system is distinctive for making an owners' association mandatory at three owners, its three-quarters-of-area quorum, its cap of half the votes for any single owner, and treating approved manager decisions as enforceable instruments.
