Law of Ownership of Real Property Units and Plotting thereof - 1423

Article 1

The words or phrases contained in this Law shall mean the following:
1 - Land: It is the plot designated for the construction of a building and the establishment of its facilities and services, according to the approved engineering plan with a building permit.
2 - Real Estate Unit: It is the house, floor, apartment, garage, shop, or any part of the lawful building that can be separated and have property rights exercised over it, and can be acted upon independently of other parts of the building.
3 - Owner: It is the person who owns an independent real estate unit, whether one or more.
4 - Maintenance and Restoration: These are the necessary works to preserve the property or maintain the utility, whether for an independent unit or for what is included in the common ownership, such as the elevator, stairs, and garden.
5 - Common Parts: These are the land on which the building is constructed, gardens, setbacks, the structure of the building, the roof, entrances, stairs, and all other parts of the building intended for common use, whether attached or separate, such as parking spaces, corridors, fountains, and elevators, unless otherwise agreed.

Article 2

1 - Every owner has the right to build on their Land within the limits of the regulations and instructions, a building of one or more floors, and to divide it into independent Real Estate Units according to the approved design in the plan and the license. Their disposition of all or some of these units shall be considered as each unit being independent of the others.
2 - The Real Estate Units in a single building shall be numbered sequentially so that no single number is repeated for two Real Estate Units in the same building.
3 - The shape and boundaries of the Land, its lengths, the building, and its dimensions must remain in accordance with the approved plan.
4 - The contents of the Title Deed must match the descriptions of the Land, its boundaries, its shape, and the descriptions of the Real Estate Unit, its boundaries, and its geometric shape. If the descriptions differ from reality, the competent authority shall correct the data of the deed in accordance with the applicable procedures, and a deed may be issued for each unit.
5 - A- If two or more persons participate in the construction of a building, they shall all be considered partners in its ownership of both Land and building, with shared ownership in all its floors and Real Estate Units and their annexes, each according to their contribution to the capital and expenses unless otherwise agreed in the contract.
B - The contract must include the names of the owners of the in-kind shares from the Landowners and the owners of the cash shares, descriptions of the Land prepared for construction, the number of the Title Deed, its date, its source, the obligations of the partners, and their other rights.

Article 3

The partners may divide their common shares in the joint property, and each of them is entitled to one or more real estate units. If they do not agree on the division, the requesting party may resort to the judiciary.

Article 4

1- The owners of real estate units in a single building are partners in the common parts unless otherwise agreed.
2- The side barriers and walls between two adjacent units in an existing building are shared between their owners unless proven otherwise, and neither of them has the right to use their share in a way that causes harm to the other.
3- The common parts that are limited in benefit to some owners are jointly owned among them unless otherwise agreed.
4- Each owner's share in the common parts that cannot be divided is an undivided share in the land and the building, and it is fully attached to the real estate unit in all actions unless otherwise agreed.
5- Each owner's share in the common parts is proportional to the value of the separately owned part.

Article 5

1- Each owner of one or more real estate units shall participate in the costs of maintaining the common parts mentioned in Article Four, managing them, and restoring them, each according to their ownership of the building.
2- Any owner, after obtaining the approval of the Owners' Association, may improve the use of the common parts or part of them at their own expense, provided that it does not change their designation or cause harm to others.
3- The owner of the unit must maintain and restore their independent share, even if they are not benefiting from it, to prevent harm to others or to the common parts.
4- No owner of a real estate unit may relinquish their share in the common parts in order to avoid participation in the costs of preserving, maintaining, or restoring them.
5- The owner of the lower unit must carry out ordinary works and restorations to prevent harm from the upper unit and its collapse, and the owner of the upper unit must not cause any harm to the lower unit in their construction and must carry out the necessary works and restorations to prevent harm to the lower unit.
6- If it becomes necessary to carry out certain works to preserve the safety of the common building or to ensure the proper use of the common parts or to maintain and restore them within any unit of this building, neither the owner of that unit nor the Owners' Association may oppose the aggrieved person in this regard, provided that the condition of this unit is restored to what it was at the expense of the executor immediately after the necessary repairs are completed.

Article 6

Article 7

The procedures for transferring ownership are carried out before the competent authority in the Authentication of Contracts and Admissions and the issuance of the related deeds, in accordance with the applicable procedures, taking into account what is stated in this Law.

Article 8

1- If the public interest necessitates the expropriation of the building, whether the expropriation is of the entire building, part of it, or of shared property such as the garden and setbacks, each owner is entitled to compensation proportional to the value of their ownership in the building.
2- However, if the expropriated part is a distinct portion of the building, then the compensation is due to the owner of the expropriated part.

Article 9

Previous Amendments

1 - If there is a shared ownership of real estate divided into more than ten units and the number of owners exceeds five, the owners must form an association among themselves for the benefit of the property. An association may be formed among them if the number of these units is ten or less, or if the owners are five or fewer.
2 - The owners' association enjoys legal personality and has an independent financial liability, and it is registered with the Ministry of Labor and Social Affairs.

  • 3 - The resources of the owners' association consist of the following:

    • A - Contributions from the owners.

    • B - Amounts determined to be collected from the owners to meet the obligations of the association.
      And the parts that are capable of that.

    • C - Loans.

    • D - Donations and gifts.

    • E - Investment returns.

Article 10

The Owners' Association elects a president from among its members who will preside over its meetings and follow up on its decisions. The election is conducted by the majority stipulated in Article Twelve, and the term is three years, renewable.

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