Mullak System and Shared Housing in Saudi Arabia 2026: Complete Guide to Homeowners Associations, Rights, and Executive Deed

Introduction: The Major Transformation in Saudi Housing Patterns

The Saudi real estate market has witnessed a fundamental shift in housing preferences in recent years. While standalone villas were once the primary dream for every Saudi family, ownership apartments have become the most realistic option for young people and new families. This transformation did not come out of nowhere but resulted from rising land and villa prices, changing lifestyles, and government support for housing financing programs. With this new trend, the urgent need emerged to regulate the relationship between owners of shared residential units, which led to the launch of the Mullak program as one of the most important regulatory initiatives in the real estate sector.

Official statistics indicate that the Saudi family homeownership rate reached 65.4 percent by the end of 2024, exceeding the target of 64 percent. The Mullak program also recorded a growth of 185 percent in renewed homeowners association certificates during the first half of 2025. These figures reflect the accelerating maturity of the housing sector in the Kingdom and the growing awareness of the importance of organizing shared housing.

From Complete Independence to Shared Ownership

For decades, housing culture in Saudi Arabia has been associated with the concept of complete independence. A standalone villa with its private garden and separate entrance was the golden standard for dignified housing. However, economic reality has imposed a new equation, as out of every 100 residential units currently being built, the rate of units designated as ownership apartments is at least 60 units.

This transformation has created a new reality represented in shared housing or shared ownership of parts and facilities. When you buy an apartment in a residential building, you do not only own your apartment but also own a common share in the land, entrances, corridors, parking lots, elevators, gardens, and all shared facilities. This new reality required firm legislative interventions through the Real Estate Unit Ownership, Subdivision and Management Law issued by Royal Decree No. M/85 and the Mullak program affiliated with the Real Estate General Authority.

Reasons for the Shift Towards Ownership Apartments

This shift is due to several interrelated factors, most notably the rise in land and villa prices beyond the purchasing power of a large segment of citizens. The change in lifestyle and the preference of small families for smaller spaces with better services also contributed to this trend. Additionally, government-supported housing financing programs through Sakani and the Real Estate Development Fund have facilitated apartment ownership with affordable installments. The development of apartment designs and the provision of duplex, roof, and private entrance options have also made them more attractive to Saudi families.

What is the Mullak Program?

The Mullak program is an integrated electronic platform launched by the Real Estate General Authority to enable owners and occupants of real estate units with shared ownership to establish a homeowners association. The program aims to organize property and facility management services in a way that contributes to preserving rights, proper utilization, and promoting a culture of coexistence. The official platform link is mullak.rega.gov.sa.

The program provides a comprehensive set of services including registering homeowners associations and obtaining an official certificate, electronic voting on decisions, managing the association's financial resources, contracting with service providers and registered property managers. It also allows issuing executive deeds against defaulters and issuing the unified national number 700 for the association.

When Must a Homeowners Association Be Established?

According to the law, if the number of owners of subdivided real estate units in a shared property reaches three or more, they must establish an association among themselves to manage the affairs of that property and register that association with the Authority. In the case of off-plan sales, the registration of the homeowners association shall be from the date of starting to deliver the second subdivided real estate unit. Technical development has been made between the Mullak and Real Estate Unit Subdivision platforms so that a homeowners association is automatically established by the real estate developer when subdividing the units.

Legal Framework for Homeowners Associations

The homeowners association enjoys independent legal personality after its registration in accordance with the provisions of the law and has an independent financial liability. This means the association can open a bank account in its name, contract with others, and represent owners before official authorities. Each homeowners association has a basic system that determines the rules of work for the general assembly and manager, provisions related to the use and management of shared parts, rules for determining subscription amounts, and spending and financial control mechanisms.

Structure of Homeowners Association

The homeowners association consists of three main components. The first is the General Assembly which includes all owners of real estate units in the shared property and has the supreme authority to make decisions, vote on budgets, and choose leadership. The second is the Association President who is an owner elected by members to be responsible for the board of directors and represents the association in official matters. The third is the Property Manager who may be an individual or company and must hold a Fal license for property management and handles daily management, fee collection, and contracting with service providers.

Executive Deed: The Radical Solution for Payment Evaders

Historically, residents in apartment complexes faced a major challenge represented by payment evaders or what is known as Free Riders, where some owners refuse to pay maintenance fees, leading to deterioration of services and decreased property value. This problem used to drain associations' efforts and create ongoing conflicts among owners.

The radical solution came in the Real Estate Unit Ownership Law, which stipulated that the manager's decisions and transaction contracts he concludes according to the powers authorized to him, after being approved by the Authority, shall be an executive deed against the owners in accordance with the provisions of the Execution Law. This means that the property manager can now, through the Mullak platform, issue an executive deed against the owner who refuses to pay, leading to suspension of his services or seizure of his accounts through the Najiz platform without the need to file a lengthy lawsuit.

Mechanism for Issuing Executive Deed

The process begins with determining subscription fees by the general assembly through voting, then the property manager issues a decision on the amounts to be paid by each owner and submits the decision to the Real Estate General Authority for approval as an executive deed. In case any owner defaults on payment, the property manager can submit a request through the platform and transfer it to the execution court via Najiz. Possible penalties include suspension of government services, seizure of bank accounts, and travel ban in ongoing cases.

Homeowners Association Fees

The Real Estate General Authority confirmed that the Real Estate Unit Ownership Law and its executive regulations do not specify a specific percentage or value for subscription in the association. Fees are determined based on the needs of each property, its size, and required services, and are voted on by the general assembly. As an illustrative example for properties containing 20 to 30 units, the proposed subscription fees may be around 1,000 SAR per real estate unit annually, but this varies significantly depending on the property size and service level.

What Association Fees Cover

Subscription fees cover elevator and mechanical parts maintenance, cleaning of corridors, entrances, and shared parts, lighting of common areas and general electricity bills, swimming pool and garden maintenance if available, security and surveillance systems, guards and workers' salaries, building insurance premiums, and emergency maintenance reserve. There must be complete transparency in spending aspects, and any owner has the right to view financial statements and meeting minutes.

Shared Parts and Their Management

Understanding shared parts is fundamental for every owner in a shared property. According to the law, shared parts include land, entrances, corridors, parking lots, tanks, channels, services, swimming pools, gardens, squares, elevators, and the like. They also include any structural elements passing through a subdivided real estate unit, shared mechanical and electrical systems, and any part of the public services infrastructure.

Rights and Obligations of Owners Regarding Shared Parts

Each owner has the right to benefit from shared parts without conflicting with others' rights. No owner may modify shared parts or make improvements without the approval of the general assembly. Ownership of side barriers, walls, floors, and ceilings between two adjacent units is shared between their owners unless there is a structural separator. Any improvements made by an owner at their expense on shared parts do not grant them ownership.

Social and Cultural Challenges

Despite the solid legal framework, there are still cultural challenges in shared housing. The culture of coexistence is new to Saudi society, which is accustomed to complete independence. Disputes over noise, parking use, corridor cleanliness, and pet keeping require time for mindsets to change towards respecting shared ownership and neighbors' rights.

Most Common Challenges

Common challenges include noise and disturbance especially late at night, disputes over parking and allocation, exclusive use of shared parts by some owners, delay in paying association fees, non-participation in association meetings, difficulty making unanimous decisions, and disputes over the required service level and cost.

Role of the Real Estate Developer

There are increasing demands to oblige developers to remain as members of the association or guarantors of facility quality for a longer period after sale. The current law states that construction and operation guarantees are transferred to the homeowners association upon its establishment and that the property subdivider must correct all defects until all valid guarantees related to construction or operation are transferred. However, this transfer does not affect the contractual or legal responsibility of whoever subdivided the property.

Developer Obligations

The real estate developer is obligated to establish a homeowners association under establishment when subdividing units if their number is three or more, deliver shared facilities in proper operational condition, correct all defects during the warranty period, officially transfer guarantees to the association upon establishment, and provide all technical and operational documents to the association.

Updated Statistics and Figures 2025

Official statistics reveal notable growth in the homeowners association sector. Mullak indicators recorded 3,600 new associations and 9,000 real estate units, bringing the total to 17,000 registered associations. More than 16,000 members joined the portal, with 4,000 association presidents and 1,000 property managers registered. Operations executed through the homeowners associations portal exceeded 74,000 operations including registration, ownership transfer, and voting. The Saudi family homeownership rate rose to 65.4 percent, exceeding the 2025 target early.

Steps to Register a Homeowners Association

To register a new homeowners association, follow these steps. First, access the Mullak electronic portal via the link mullak-services.housing.gov.sa. Second, log in through the National Single Sign-On. Third, choose to create a new association and enter property information including deed number and address. Fourth, enter the founding owners' data. Fifth, approve the basic system or modify it as needed. Sixth, submit the application and wait for approval from the Authority. Seventh, receive the association registration certificate. After registration, you can apply to issue the unified national number 700 which enhances the legal status of the association and facilitates dealings with banks and government agencies.

Tips for Successful Homeowners Association

For Individual Owners

Make sure to attend association meetings and participate in voting as this is your right and duty. Pay subscription fees on time to avoid executive deeds and penalties. Respect neighbors' rights and general behavior rules in the property. Report any malfunctions or problems immediately to the property manager. Review financial statements and meeting minutes regularly.

For Association Presidents and Property Managers

Set a clear plan for preventive maintenance, not just emergency maintenance. Maintain complete transparency in financial matters. Hold regular meetings at least monthly or quarterly. Use communication channels in the Mullak platform effectively. Focus on continuous development through specialized courses. Document all decisions and contracts officially.

Frequently Asked Questions

Is homeowners association registration mandatory?

Yes, if the number of subdivided unit owners reaches three or more, they must establish an association and register it with the Real Estate General Authority.

How much does it cost to register a homeowners association?

Registration on the Mullak platform is completely free and there are no government fees for establishing the association.

What happens if I refuse to pay association fees?

The property manager can issue an executive deed against you, leading to suspension of your government services and seizure of your accounts through the Najiz platform.

Can a tenant participate in the homeowners association?

Membership in the association is for owners only, but the system allows the possibility of creating a separate tenants' association.

Who determines subscription fees?

The general assembly determines fees through voting, and the Authority does not interfere in determining the value.

Is the owner responsible even if they rent out their apartment?

Yes, the owner's responsibility for paying association fees remains even if they rent out the unit unless their contract with the tenant states otherwise.

How do I verify the homeowners association status before buying an apartment?

Ensure the association is registered on the Mullak platform, request to view financial statements and meeting minutes, and verify there are no debts or obligations on the unit.

Conclusion

The Mullak system represents a qualitative leap in organizing the shared housing sector in Saudi Arabia. With the Saudi family homeownership rate rising to 65 percent and young people trending towards ownership apartments, homeowners associations have become a necessity rather than an option. The executive deed has solved the problem of payment evaders that exhausted associations for years. However, true success requires a cultural change in understanding the concept of shared ownership, respecting neighbors' rights, and active participation in property management. Investing in an apartment within a shared property is no longer a risk as it was in the past thanks to the solid legal framework provided by the Real Estate General Authority. The key is awareness of your rights and obligations and active participation in the homeowners association.