Law of Ownership, Subdivision, and Management of Real Estate Units

Chapter 1: Definitions

Article 1

  • In this Law, the following terms and phrases shall have the meanings assigned thereto, unless the context requires otherwise:

    • Law: Law of Ownership, Subdivision, and Management of Real Estate Units.

    • Regulations: The implementing regulations of this Law.

    • Authority: The Real Estate General Authority.

    • Owner: A natural or legal person who owns one or more subdivided real estate units.

    • Land: Real estate allocated for the construction of one or more buildings, along with its facilities and utilities, and for which the approved statutory procedures have been completed.

    • Subdivision: A procedure whereby a real estate on which a building is constructed is divided into separate units for the disposition of each unit separately.

    • Subdivided Real Estate Unit: A part of a jointly-owned real estate or a real estate complex which can be owned, utilized, or disposed of separately, including houses, duplexes, apartments, shops, garages, or any other part.

    • Common Parts: Parts of a jointly-owned real estate or a real estate complex which are prepared for common use, or the nature of which requires joint ownership by the owners of the subdivided real estate units, including lands, entrances, corridors, parking lots, water tanks, conduits, utilities, swimming pools, gardens, yards, elevators, and the like.

    • Jointly-owned Real Estate: A real estate which consists of subdivided units and common parts. Real Estate Complex: A group of single-purpose or multi-purpose jointlyowned properties located within a specific geographic area and connected through common parts. Owners

    • Association: An entity established by the owners of a jointly-owned real estate, or their representatives, for the management of the affairs of such property, in accordance with the provisions of this Law and the Charter.

    • Charter: The owners association’s charter.

    • Budget: The owners association’s annual budget for the management of the jointly-owned property.

    • General Assembly: The general assembly of the owners association.

    • Manager: Any natural or legal person appointed to manage a jointly-owned real estate or a real estate complex.

    • Maintenance: The works necessary to preserve a jointly-owned real estate or a real estate complex in a manner that serves its purpose.

Chapter 2: Real Estate Partition

Article 2

  • 1. An owner of a land by title deed which meets Sharia and statutory requirements may construct a building thereon, sub-divide the building into separate units, and issue separate title deeds for each subdivided real estate unit, subject to approved statutory procedures.

  • 2. Subdivided real estate units in a jointly-owned real estate shall be serially numbered so that each subdivided unit has a distinct number.

Article 3

  • 1. The re-subdivision or changing of the purpose of a jointly-owned real estate or part thereof may be carried out upon the approval of the general assembly and the mortgagee, if any, without prejudice to the right of an aggrieved party to legal action.

  • 2. The plan of a jointly-owned real estate must be amended according to the changes made thereto due to the re-subdivision or change of purpose; such amendments shall be approved by the competent agencies.

  • 3. If any changes are made to a jointly-owned real estate, the owners shall share the outcomes of such changes based on the area of their subdivided units to the total area of the subdivided real estate units as indicated in the subdivision document issued by the Authority. In sharing such outcomes, the owners may agree to take into account the value and area of each subdivided real estate unit when determining the share of each owner in such changes.

Article 4

Previous Amendments
  • 1- The following conditions must be met for subdivision or re-subdivision:

    • A- Title Deed, fulfilling the legal and regulatory requirements, along with the associated rights and obligations.

    • B- Data of the real estate or the common real estate or the real estate complex or the part of the common real estate or the real estate complex - as applicable - including: its address, area, facilities if any, and any other data required by the authority.

    • C- Licenses, permits, and approvals; issued by the competent authorities.

    • D- A survey report from a licensed engineering office, approved by the authority; which includes the determination of what pertains to each subdivided real estate unit from the land and the common parts, based on the ratio of the area of each subdivided real estate unit to the total area of the subdivided real estate units, or the value of that unit and its area to the total value of the subdivided real estate units and their area, as applicable.

    • E- Evidence of the approval of the owners or the owners' association or the complex association - as applicable - on the report of the engineering office referred to in paragraph (1/d) of this article.

    • F- Evidence of the mortgagee's approval, if any.

    • G- Evidence of the approval of the owner of the subdivided real estate unit if the re-subdivision involves a change in the area of his unit or his share of the common parts or his shared area of the land.

    • And the Board of Directors of the authority may, by its decision, amend or exempt some of the requirements mentioned in this paragraph.

  • 2- The competent authority for subdivision or re-subdivision shall decide on the claim referred to in paragraph (1) of this article within (ten) days from the date of completing the requirements mentioned in the same paragraph.

  • 3- In the event of approval of the claim referred to in paragraph (1) of this article; the authority - or whoever is assigned that - shall approve the subdivision and re-subdivision, and issue a document that includes the data specified by the authority.

Article 5

  • 1. Partners shall, upon building a jointly-owned real estate, include in the partnership contract the names of the holders of in-kind shares; the holders of monetary shares; the description of the land prepared for construction; the title deed’s number, date, and source; and partners’ obligations and rights.

  • 2. Partners in a jointly-owned real estate may divide their common shares; each partner shall have one subdivided real estate unit, or more. If the partners fail to agree on the division, legal action may be taken.

Chapter 3: Ownership Provisions

Article 7

  • 1. The common parts of a jointly-owned real estate shall be shared by the owners of subdivided real estate units. If a subdivided real estate unit has multiple owners, they shall all be deemed co-owners of the common parts, unless they agree otherwise.

  • 2. The ownership of side barriers, walls, floors, and ceilings between two contiguous subdivided real estate units shall be shared by their owners unless there is a structure separating the two units, and unless otherwise established. In using the part allocated to him, the owner may not harm the other owner or owners.

  • 3. Common parts the benefit of which is limited to certain owners shall be deemed jointly owned by them, unless agreed otherwise.

  • 4. An owner's share in the common indivisible parts shall be deemed a common part, and shall be attached to his subdivided real estate unit in all legal actions applicable to the unit, unless agreed otherwise.

  • 5. An owner's share in the common parts shall be equal to the percentage of the area of his subdivided real estate unit to the total area of the subdivided real estate units as indicated in the subdivision document issued by the Authority or in the construction permit of the jointly-owned real estate in case of off-plan sale of subdivided real estate units. In determining such shares, the owners may agree to take into account the values and areas of the subdivided real estate units.

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