1. What is an Owners' Association?
An Owners' Association (OA) is a legal entity established to manage common areas in multi-unit properties, such as residential towers and commercial complexes.
🏢 Properties Requiring an OA
- • Multi-story residential towers
- • Residential compounds
- • Multi-unit commercial buildings
- • Mixed-use developments
- • Townhouse communities
✅ OA Responsibilities
- • Maintain common facilities and areas
- • Manage the maintenance fund
- • Collect service charges
- • Insure the building
- • Enforce building rules
- • Resolve disputes between owners
Legal Framework: The Strata Title Law (Decree-Law No. 27 of 2017) and its implementing regulations govern Owners' Associations in Bahrain, supervised by the Real Estate Regulatory Authority (RERA).
2. Establishing an Owners' Association
Formation Steps
Property Registration with RERA
Developer registers property and submits plans showing common and private areas
Prepare Bylaws
Draft bylaws according to RERA's approved template
Inaugural General Assembly
Hold first owners' meeting to approve bylaws and elect board of directors
Official Registration
Register OA with RERA and obtain legal personality
| Requirement | Details |
|---|---|
| Minimum for Formation | 10% of units sold or 1 year from first sale |
| Inaugural Meeting Quorum | 51% of owners' votes |
| Board of Directors | 3-7 elected members |
| Term of Office | 2 years, renewable |
3. Governance & Management
General Assembly
Supreme authority - all owners. Meets at least annually.
Board of Directors
Elected by owners. Manages daily OA affairs.
Property Manager
Licensed management company or dedicated employee.
⚖️ Voting Thresholds
Ordinary Decisions (Simple Majority)
- • Annual budget
- • Board elections
- • Routine maintenance
Special Decisions (75%)
- • Bylaw amendments
- • Major capital projects
- • Sale or mortgage of common areas
4. Owners' Rights & Duties
✅ Owner Rights
- • Use their unit and common facilities
- • Attend general assemblies and vote
- • Stand for board election
- • Access records and accounts
- • Challenge non-compliant decisions
- • Sell or lease their unit
- • Demand repair of common facilities
⚠️ Owner Duties
- • Pay service charges on time
- • Comply with bylaws and building rules
- • Maintain their private unit
- • Not damage common facilities
- • Not disturb neighbors
- • Obtain approval for modifications
- • Inform tenants of building rules
5. Service Charges
Service charges are amounts paid by owners to cover building management and common area maintenance costs.
| Item | What It Covers |
|---|---|
| General Maintenance | Elevators, central A/C, lighting, cleaning |
| Amenities | Pool, gym, gardens, parking |
| Security | Guards, CCTV, access systems |
| Insurance | Building and liability insurance |
| Management | Management company, accounting, legal |
| Reserve Fund | Major repairs and emergencies (typically 10-25%) |
🚫 Consequences of Non-Payment
- • Late payment penalties (typically 1-2% monthly)
- • Suspension of certain services (with notice)
- • Prevention of unit sale or transfer
- • Property lien
- • Court proceedings and debt recovery
6. Dispute Resolution
Common disputes include: service charges, board decisions, facility usage, and building rule violations.
Resolution Methods
Direct Negotiation
Attempt amicable resolution between parties or through the board
RERA Complaint
File complaint with RERA's Common Property Dispute Committee
Arbitration
If stipulated in the bylaws as a dispute resolution mechanism
Civil Courts
File lawsuit in Major Civil Court for complex disputes
💡 Our OA Services
- ✓ Owner representation before RERA
- ✓ Bylaw drafting and review
- ✓ OA governance consulting
- ✓ Service charge collection
- ✓ OA dispute litigation
- ✓ Management contract review
7. Frequently Asked Questions
What is an Owners' Association?
A legal entity managing common areas in multi-unit properties. It handles maintenance, collects service charges, and manages building affairs.
Are service charges mandatory?
Yes. All owners must pay service charges. Refusal results in penalties, sale prevention, and potential legal action.
What is RERA's role?
RERA regulates and supervises OAs, registers associations, approves bylaws, and adjudicates disputes through its specialized committee.
How are disputes resolved?
Progressively: Direct negotiation → RERA complaint → Arbitration (if available) → Civil courts.
Our Services for Owners' Associations
🏆 Our Experience
Sahwan Law has extensive experience with owners' associations, including involvement in incorporating the first associations under both the old and new regulatory regimes in Bahrain:
- • Tala Owners' Association (Main) - Pioneer association
- • Amwaj Islands Owners' Association - Large-scale master community
📦 Retainer Packages for Associations
We offer comprehensive package deals (retainers) tailored for owners' associations that include:
- ✓ Legal Advisory: Ongoing guidance to the Board on governance, compliance, and liability protection
- ✓ Contract Review: Property management, maintenance, and service contracts
- ✓ General Assembly Support: Meeting notices, quorum, resolutions, and minutes
- ✓ Debt Collection: Service charge recovery including demand letters, negotiation, and litigation
- ✓ Dispute Resolution: RERA complaints, arbitration, and court representation
- ✓ Regulatory Compliance: RERA filings and bylaw amendments
🏢 For Associations
- • Establishing new associations
- • Board advisory and liability protection
- • Service charge collection
- • Litigation against defaulters
- • Contract negotiation
👤 For Individual Owners
- • Challenging unlawful decisions
- • Service charge disputes
- • RERA complaints
- • Protecting ownership rights
- • General Assembly representation
Need Legal Support for Your Association?
Contact us to discuss retainer packages and comprehensive legal services