Implementing Regulations of the Law of Ownership, Subdivision, and Management of Real Estate Units - Article 27

rega_gov_sa · executive_regulation · processed · 1 chunks

date_gregorian=2020-06-26 date_hijri=1441-11-05 document_type=executive_regulation entity=regulation:Implementing Regulations of the Law of Ownership, Subdivision, and Management of Real Estate Units entity=legislation_category:regulation entity=legislation_type:ministerial_decision entity=format:application/pdf entity=document_number:27 language=en taxonomy_l1=municipal_construction taxonomy_l2=real_estate validity=valid validity_confidence=1.0

1.Owners association and complex association, as the case may be, shall appoint an auditor licensed to operate in the Kingdom in the following cases:

a. The jointly-owned property or real estate complex contains one hundred (100) or more subdivided real estate units.

b. The assets of the owners association or the complex association exceed one million (1,000,000) riyals.

2.Auditor may not combine auditing work with membership of the general assembly or any other role associated with the jointly-owned property or the real estate complex. The auditor may not be a partner, an employee, or a relative up to the fourth degree of any member of the general assembly.

3.The auditor may, at any time, review the association's books, records, and documents, and may request any data or information deemed necessary for performing his duties. The manager shall facilitate the auditor’s work. If the auditor encounters difficulties in this regard, these shall be documented in a report to the general assembly.

4.The auditor shall prepare an annual report in accordance with recognized auditing standards and submit the same to the general assembly. The report shall highlight any violations of the Law, the Regulations, or the charter discovered during the audit.

5.The auditor shall not disclose any confidential information obtained in the course of his duties to third parties or owners who are not members in the general assembly.

6.The auditor shall be liable for any damages caused to the general assembly due to errors, negligence, or omissions in the performance of his duties.

7.Any decision passed by the general assembly approving the manager’s report or the financial statements, without prior review of the auditor's report, shall be void.