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Transfer of warranties when the association is formed

When the owners' association is formed, the construction and operating warranties pass to the owners or the complex association. The developer must keep repairing defects until valid warranties have been transferred, and the transfer does not end the developer's contractual or statutory liability.

Mullak platform (Real Estate General Authority) · Last reviewed: Oct 31, 2026

Who it applies to

The handover of a shared property from developer to owners' association, association members, and maintenance providers working on a newly delivered property.

What the source says

Article 38 of the implementing regulation of the unit ownership law deals with the moment a shared property is handed from the developer to the owners. Under its first paragraph, construction and operating warranties pass to the owners, or to the complex association once formed. Under its second paragraph, the developer remains responsible for repairing defects until valid warranties have passed, and the transfer does not end the developer's contractual or statutory liability.

In practice, once formed, the association is the party that claims under the warranties, and the developer is not released simply because the association exists. Until valid warranties have actually passed, repairing defects stays with the developer.

When it matters to you

If you sit on a newly formed association, ask the developer for the warranty documents, their dates and who carries out repairs, and keep them in the association's records before routine maintenance starts. If you are a maintenance provider, ask what warranty is still in force before repairing a defect that may be the developer's responsibility, so the association is not charged for something it should not pay.

What this article does not cover

The length of warranty periods is found in developers' contracts, not in the text, so this article states no period. This is general information from a published source, not legal advice; official decisions and procedures take place on the authority's platform.

Key points

  • Construction and operating warranties pass to the owners or the complex association when it is formed.
  • The developer repairs defects until valid warranties have passed.
  • The transfer does not end the developer's contractual or statutory liability.
  • Warranty periods are set in the developer's contracts.

Related provisions

  • اللائحة التنفيذية لنظام ملكية الوحدات العقارية، المادة 38 (الفقرتان 1 و2)