Homeowners Associations in Saudi Arabia 2025: Complete Guide to Fees, Rights, and Executive Enforcement

Introduction: Why is a Homeowners Association Essential?

Have you ever lived in a building where the elevator broke down for months because some residents refused to pay maintenance fees? Or faced problems with neighbors about cleaning entrances and lighting corridors? These frustrating scenarios were a daily reality for thousands of Saudis until the solution came!

Since the issuance of the Real Estate Ownership and Management Law under Royal Decree No. M/85, establishing a homeowners association has become mandatory when there are 3 or more owners. More importantly, the association can now use executive enforcement to collect dues from defaulters!

💡 Important: The number of registered associations on the "Mullak" platform has exceeded 15,810 associations, of which 9,354 are active (69%), with more than 212,000 members!

What is a Homeowners Association?

A homeowners association is a legal entity established by owners of real estate units in a shared property to manage that property's affairs. The association enjoys legal personality and independent financial liability upon registration with the Real Estate General Authority, representing all owners regarding transactions on shared parts.

Shared Parts Managed by the Association

Shared parts in any property include:

Basic Facilities: Entrances, corridors, stairs, elevators, waiting halls, and parking lots.

Shared Services: Water tanks, electrical rooms, central air conditioning systems, and sewage networks.

Recreational Facilities: Swimming pools, gardens, playgrounds, and gyms.

Structural Elements: Roofs, exterior walls, foundations, and general structural framework.

When is Establishing an Association Mandatory?

According to the Real Estate Ownership and Management Law:

Mandatory: If the number of owners of separated real estate units in a shared property reaches three or more, they must establish an association among themselves to manage that property's affairs and register it with the Real Estate General Authority.

Optional: If the number of owners is less than three, they can establish an association voluntarily.

Developer Obligation: For off-plan sales projects, the real estate developer is required to establish a homeowners association through the "Mullak" platform before separating units.

⚠️ Warning: Owners of separated real estate units – or their representatives – must apply to the Real Estate General Authority to register the homeowners association within thirty days of its establishment!

Structure of Homeowners Association: Who Manages What?

The homeowners association consists of several parties, each with specific responsibilities:

General Assembly (All Owners)

Includes all real estate unit owners in the shared property. Meets to make major decisions, vote on fees and budgets, elect the president, and approve amendments.

Association President

Elected from among the owners through electronic voting on the "Mullak" platform. Calls and chairs general assembly meetings, supervises the property manager's performance, and signs contracts and official documents.

Property Manager

May be an individual or company, and must hold a "Fal Property Management" license. Manages maintenance of shared parts, collects fees through the association's bank account, disburses according to budget, contracts with service providers, and prepares periodic financial and technical reports.

Member (Owner)

Is an owner of a unit within the shared property, participates in general meetings and votes on decisions, and has the right to view financial statements and minutes. Commits to paying association fees and bears electricity and water bills for their unit.

Association Fees: Where Does Your Money Go?

One of the most important questions owners ask: How much do I pay? And where does this money go?

How Are Fees Determined?

Subscription fees are determined based on a general assembly decision with a 75% majority vote. The "Mullak" program studies the association's situation according to the number of units and shared parts, then proposes fees for voting and approval.

Maximum Subscriptions (Guideline Regulations)

According to the guideline regulations, maximum limits are as follows:

Units valued over 300,000 SAR: Maximum annual subscription is 3% of the unit's market value.

Units valued under 300,000 SAR: Maximum annual subscription is 7% of the unit's market value.

Practical Example of Fee Distribution

Let's assume a building with 20 apartments, annual subscription fees of 2,000 SAR per unit, totaling 40,000 SAR annually. This is distributed approximately as follows:

Elevator Maintenance: 8,000 - 12,000 SAR annually (per elevator) including periodic visits and emergency repairs.

Cleaning: 6,000 - 10,000 SAR annually including cleaning staff salary or contracting with a specialized company and cleaning materials.

Shared Electricity: 4,000 - 8,000 SAR annually for lighting entrances, corridors, and parking.

Water Tank Maintenance: 1,500 - 3,000 SAR annually for periodic cleaning and sterilization.

Security and Guarding: As needed, may reach 24,000 SAR annually for a security guard.

Emergency Maintenance: 10-15% reserve of budget for unexpected cases.

Executive Enforcement: The New Legal Weapon

This is the most important and powerful point in the new system! What happens when an owner refuses to pay fees?

What is Executive Enforcement?

According to Article 21 of the Real Estate Ownership and Management Law: "The manager's decisions and contracts concluded - according to the powers delegated under the law - related to the shared property or real estate complex, after approval by the Authority, shall be an executive document against owners according to the provisions of the Execution Law."

What Does This Mean Practically?

It means that when any owner defaults or refuses to pay association fees by their due dates:

Step One: The property manager submits an executive enforcement request through the "Mullak" platform.

Step Two: The program verifies the default or refusal to pay.

Step Three: It's sent to the Real Estate General Authority for approval.

Step Four: It's submitted through the "Najiz" platform by the property manager.

Step Five: An execution document is issued against the defaulter.

The Advantage of This Procedure

No need for lengthy lawsuits! Direct submission to the execution court with fast and effective procedures. This protects the rights of shared parties in the property and ensures service continuity.

📌 Tip: Executive enforcement is one of the strongest legal tools, as it can lead to stopping government services for the defaulter or even seizing their assets!

Steps to Establish a Homeowners Association

If you're an owner in a shared property and haven't established an association yet, here are the steps:

Step 1: Access the Mullak Platform

Enter the Mullak electronic platform (mullak.rega.gov.sa) and choose to register as a new user through the National Single Sign-On.

Step 2: Create the Association

Click "Create New Association" and enter property information such as comprehensive deed number, property area, number of units, and location.

Step 3: Add Owners

Invite other owners to join the association by entering their data (ID number and unit deed number).

Step 4: Elect the President

Open nominations for association presidency, then vote electronically. The president appoints a deputy from among the nominees.

Step 5: Appoint the Property Manager

Choose a property manager from the list available on the "Mullak" platform (individuals or companies licensed by "Fal"). Can be one of the owners or an external party.

Step 6: Determine Fees

The fee proposal is submitted for voting by the general assembly. Fees are approved by 75% majority.

Step 7: Open Bank Account

Print the bank account opening letter from the Mullak platform and go to any bank to open an account in the association's name.

Step 8: Issue Unified Number (700)

Submit a request to issue the National Unified Number for Establishments (700) through the platform, which is necessary for dealing with banks and government agencies.

Common Problems and Their Solutions

From practical application, several recurring problems have emerged:

1. Lower Floor Owners Refusing to Pay Elevator Fees

Ground and first floor residents argue they don't use the elevator. Solution: The law states that every owner shares in the costs of shared parts according to what they own of the building, regardless of use. The elevator raises property value for everyone.

2. Association Struggling to Reach Voting Quorum (75%)

Some associations don't reach the required voting percentage. Solution: The "Mullak" program announced handling struggling associations in Riyadh and Jeddah. "Mullak" can take measures to activate struggling associations by appointing a president, manager, and setting fees.

3. Dispute Between Owner and Tenant Over Fee Payment

Who pays association fees: owner or tenant? Solution: The responsibility falls on the owner before the association. However, they can agree with the tenant in the lease contract for the tenant to bear these fees.

4. Lack of Transparency in Spending

Some owners complain about not knowing where money is spent. Solution: The law requires the property manager to prepare periodic financial reports and share them with the Authority and owners. Every owner has the right to view financial statements and minutes.

5. No Association in the Building

Many old buildings have no organized association. Solution: Any owner can initiate establishing an association through the "Mullak" platform. Registration is free with no government fees.

Owner Rights and Obligations

It's important to know what you're entitled to and what's required of you:

Your Rights as an Owner

You have the right to participate in general assembly meetings and vote on decisions, and to run for association presidency or any position. You can view financial statements, minutes, and reports, object to decisions through association mechanisms, equally benefit from shared parts with other owners, and request fee modifications through voting.

Your Obligations as an Owner

You must pay association fees on their due dates, comply with approved general assembly decisions, and preserve shared parts without causing damage. You must not modify shared parts without association approval, maintain your private unit to prevent harm to others, and not sublet except with association approval.

🔑 Remember: Even if you rent out your unit, your responsibility to the association remains unless your contract with the tenant states otherwise!

Mullak Platform: Your Electronic Services

The "Mullak" platform affiliated with the Real Estate General Authority provides a range of electronic services:

Basic Services

These include creating and registering a new homeowners association, joining an existing association, running for association presidency or management, electronic voting on decisions, issuing and collecting subscription invoices, and viewing financial statements.

Advanced Services

These include issuing the National Unified Number (700), transferring water meter to association name, contracting with registered service providers, applying executive enforcement for defaulters, community page for member communication, and issuing and printing association certificate.

Ready Service Packages

"Mullak" provides comprehensive service packages including elevator maintenance (4 annual visits), tank cleaning (one visit), pest control (one visit), cleaning services (12 visits), and emergency calls.

Golden Tips for Buyers Before Purchasing a Condo

If you're thinking of buying an apartment in a building or residential complex, here's what to check:

Before Purchase

Verify there's a registered and active homeowners association on the platform, and request to view the association's financial statements to ensure no debts. Ask about the annual subscription value and what it includes, confirm there are no outstanding dues on the unit you want to buy, and review association meeting minutes to see previous decisions.

At Purchase

Ensure the sales contract includes disclosure of the unit's obligations to the association. Request immediate transfer of membership in the association to your name, and receive a copy of the association's bylaws.

After Purchase

Register your unit on the "Mullak" platform and participate in association meetings and voting. Commit to paying fees on time and communicate with the property manager for any observations or complaints.

Frequently Asked Questions

Is establishing a homeowners association free?

Yes, there are no government fees for establishing or registering a homeowners association. The only fees are owner subscriptions determined by voting to cover maintenance and service costs.

Can I object to fee amounts?

Individual objection to approved fees is not possible, but members can submit a request in association decisions to change fees and vote on them again.

What happens to struggling associations?

Associations that struggle to complete activation requirements (appointing president, property manager, determining subscriptions) will have "Mullak" take measures to activate them by appointing a president, manager, and determining subscription fees.

Can a tenant association be established?

Yes, the law allows the possibility of establishing a tenant association to organize their affairs in shared ownership properties.

What is the Unified Number (700) and why do I need it?

The National Unified Number for Establishments (700) enhances the association's legal standing and facilitates dealings with banks and government agencies like Najiz, water company, and electricity company.

Can the association prevent a defaulting owner from using facilities?

The law allows the association to take administrative and financial measures, but the strongest weapon is executive enforcement through which compulsory collection can be made through the execution court.

Conclusion

A homeowners association is not just a routine procedure, but the optimal solution for organizing shared living in shared ownership properties. With executive enforcement, no owner can evade their responsibilities at others' expense.

If you live in a building or residential complex and haven't established an association yet, now is the time to take initiative! Registration is free through the "Mullak" platform, and the benefits are countless: from organizing maintenance, to protecting rights, to raising property value.

Remember: A building without a homeowners association is like a ship without a captain!