Law of Ownership Subdivision and Management of Real Estate Units

1. If a jointly-owned subdivided real estate unit comprises three owners or more, the owners shall establish an association to manage their property and register the same with the Authority. The owners association of a subdivided real estate unit sold off-plan shall be registered as of the date of delivery of the second subdivided real estate unit. 2. The owners association shall have an independent legal personality upon registration in accordance with this Law and shall have an independent financial capacity. 3. The Authority shall be responsible for registering owners associations and regulating their activities; the Regulations shall determine relevant procedures. The Authority may outsource some of the registration and regulation activities to the private sector. 4. Each owners association shall have a charter to ensure the jointly-owned real estate is used and managed in a manner not conflicting with the provisions of this Law. An association without a charter may not be Law of Ownership, Subdivision, and Management of Real Estate Units registered. The Regulations shall determine the provisions of the charter, including the following: a) Work procedures of the general assembly and the manager. b) Provisions for the use and management of the common parts. c) Rules for determining the amounts paid by the owners of the jointly-owned real estate for its management and for maintenance of its common parts. d) Determining the beginning and end of the owners association’s fiscal year, rules for budget disbursement, and methods of financial control. e) Owners association’s dissolution rules and liquidation procedures.