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What does the Association do with all the service charge collected?
Last Updated: April 23, 2026Funds are allocated to maintenance, operations, staff, utilities, and reserves as per approved Budget by the Owners during the Annual General Assembly Meeting. Professional management ensures full transparency and timely reports to the Board.
What is an Order to Pay?
Last Updated: April 19, 2026An Order to Pay is a formal legal notice sent by an Owners Association manager or board chairman to a defaulting owner who has failed to pay service charges. Under Law 27 of 2020, this document acts as a preliminary step to debt recovery, demanding payment within 60 days and detailing outstanding amounts, penalty fees, and...
Can the association file a case if service charges are not paid?
Last Updated: April 23, 2026The Owners Association has full legal authority to pursue recovery of unpaid service charges through formal legal channels. This includes issuing notices, filing claims, and enforcing court orders if necessary.This legal framework ensures fairness and prevents financial burden from falling on compliant owners.
What happens if I don’t pay the service charge?
Last Updated: April 23, 2026Non-payment results in penalties, interest charges, and formal notices. Continued failure to pay can escalate to legal action, including an official Order to Pay issued under Bahrain law. This process ensures that all owners fulfil their financial obligations, protecting the community from financial instability.This process ensures that all owners fulfil their financial obligations, protecting the...
Do I have to pay if I don’t use the facilities?
Last Updated: April 23, 2026Yes. Service charges are based on shared ownership, not usage. Even if you do not personally use certain facilities, you still benefit from the overall maintenance and value preservation of the property. The building’s condition, reputation, and functionality impact all units equally, making shared contribution necessary.
Why do we have to pay service charge?
Last Updated: April 23, 2026It is a legal requirement under Real Estate Regulatory Authority Bahrain (RERA) for all owners to pay service charges, ensuring the proper funding and operation of the Owners Association. Service charges are essential because they fund all services and maintenance activities required to keep the property operational. Without these contributions, critical services such as cleaning,...
How are service charges calculated?
Last Updated: April 23, 2026Service charges are calculated based on each unit’s proportionate share in the building, usually determined by unit size or entitlement as defined in the registered Bylaws. This ensures a fair distribution of costs, where larger units contribute more than smaller ones. The calculation is designed to reflect actual usage and ownership share, maintaining transparency and...
What is Annual Service Charge?
Last Updated: April 23, 2026Annual service charge in an Owners Association (OA) is a mandatory yearly fee paid by property owners to cover the costs of managing, maintaining, and repairing shared common areas and facilities. These fees ensure the upkeep of security, landscaping, lifts, cleaning, and building insurance, often calculated based on unit area.
Who approves the budget?
Last Updated: April 23, 2026The Board reviews it and presents it to the Owners at the Annual General Assembly Meeting. The Owners to vote and approved the budget for the coming year.
Who prepares the budget?
Last Updated: April 23, 2026The Association Manager prepares a comprehensive and detailed budget based on the actual operational needs of the property, including maintenance, services, and reserve funding requirements. The proposed budget is then presented to owners for review and approval during the AGM, ensuring transparency and collective decision-making.