In the Kingdom of Bahrain, an Owners Association (OA) is a legal entity responsible for managing and maintaining common areas within jointly owned properties such as apartment buildings, residential complexes, and mixed-use developments. The formation of an Owners Association ensures proper governance, financial management, and maintenance of the property.
The process is regulated by the Real Estate Regulatory Authority (RERA) Bahrain under the framework of the Law No. 27 of 2020 on Promulgating the Real Estate Sector Regulation Law.
1. Formation of the Owners Association
Once the units are sold and registered with SLRB, the Owners Association is officially established. All unit owners automatically become members of the association.
2. Preparation of the Owners Association Documents for Formation:
- Joint Property By Laws
- Unit Entitlements for the entire property
- Community rules and regulations
- Proposed annual service charge budget
- Board of Directors nomination forms
These documents establish how the property will be managed and how expenses will be shared among owners.
3. First General Assembly Meeting
The first meeting of owners is held to:
- Approve the service charge budget
- Elect the Board of Directors
- Approve the Joint Property By Laws
- Approve the communal rules and regulations
- Approve the Owners Association Management Company
4. Appointment of an Owners Association Manager
The Owners Association appoints a licensed OA Manager approved by RERA. The manager is responsible for the daily operations of the building, including maintenance, financial management, vendor contracts, and compliance.
5. Registration of the Joint Property
After the First General Assembly meeting is completed a set of required documents must be submitted to RERA for review and approval. RERA will issue a registered and approved Certificate of the Established Owners Association.
6. Opening of the Association Bank Account
A dedicated bank account is created in the name of the Owners Association to collect service charges and manage operational expenses. A Reserve Fund account must also be opened to deposit reserve charges for future CAPEX expenses of the property.
With proper registration and professional management, Owners Associations play a key role in maintaining the quality and sustainability of residential communities across Bahrain.
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