Dubai has moved to shut a long-running authorized hole in actual property, clarifying when property consumers should pay service charges for collectively owned buildings.
The Rental Disputes Centre has issued a brand new judicial precept confirming that unit homeowners are answerable for such costs from venture completion, even when formal handover has not but taken place.
The ruling resolves recurring disputes between builders and consumers over accountability for the prices of working and sustaining shared services.
Dubai Rental Disputes Centre
The ruling anchors itself in Legislation No. (6) of 2019 on Collectively Owned Properties, which regulates funds to cowl administration, operation, and upkeep of frequent areas.
Underneath the legislation, both the developer or the proprietor should bear costs for unsold items, with funds directed to administration firms to make sure uninterrupted companies and environment friendly constructing maintenance.
Whereas the laws was typically clear, disputes had emerged in instances the place items offered by instalments had been accomplished however not registered beneath the client’s identify.
Builders usually withheld supply as a consequence of excellent dues, elevating questions over who ought to pay the service costs — the client or the developer.
The Rental Disputes Centre referred the case to the Normal Authority for Unifying Ideas.
After reviewing the related authorized provisions, the Authority dominated that the client whose identify seems within the preliminary register of the unit is answerable for service costs ranging from the date of venture completion or from default on funds, even when remaining possession has not but been transferred.
Dubai actual property disputes
Choose Abdulqader Mousa Mohammed, President of the Rental Disputes Centre, stated: “The Normal Authority has addressed this legislative hole by decoding the legislation’s underlying intent to safe the soundness of collectively owned properties and assure the uninterrupted provision of important companies.
“Holding defaulting consumers accountable for service costs aligns with the spirit of the laws.
“By doing so, we now have established a transparent judicial precedent that eliminates confusion, strengthens sensible strategy, and reaffirms our dedication to justice and truthful dispute decision.”
The choice reinforces confidence in Dubai’s actual property regulatory framework, guaranteeing the continuity of important constructing companies, defending compliant homeowners, and stopping loopholes that would undermine communities.
Authorized ruling
It additionally underlines the Rental Disputes Centre’s position in clarifying laws by means of judicial interpretation. It retains tempo with evolving property practices and strengthening Dubai’s standing as a premier world funding vacation spot.
Consistent with this position, the Centre additionally closed 49,817 execution recordsdata associated to joint possession in 2024.
This milestone coincided with the launch of a self-execution service for service charge claims, enabling property administration firms to submit claims extra effectively and guaranteeing continuity of companies whereas enhancing constructing administration processes.
