The Ministry of Housing and Urban Planning published in this week’s issue of the Official Gazette a decision issuing the Form of the System of Real Estate Owners Associations that is intended to be binding on Real Estate Owners Associations and read alongside the System of the Apartments and Floors Ownership and its executive regulation.
The new System of Real Estate Owners Association is extremely important for any person who owns an apartment in a building as this system sets obligations for the appointment of a manager of the collective real estate. Article 18 of the system also imposes an obligation to establish a board of directors that is distinct from the general assembly of the owners if the number of units in the real estate exceeds 50 units.
The system provides a detailed outline of the duties of the manager, the general assembly, and the board of directors, and sets rules for a compulsory annual meeting of the general assembly, as well as the conditions relating to the payment of remuneration to the board of directors, the manager, and the auditor. The system also permits the appointment of a company to manage the real estate on behalf of the owners association instead of an individual manager, but requires this company to be wholly owned by Omanis or GCC nationals and that the company has a licence from MOCIIP to practise the activity of managing real estate owners association.
This new decision enters into force tomorrow, but existing owners associations have 3 months to comply with it. You can read it in full in English on the link below: