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Common Properties Law No. 6 (2019)

Dubai developers no longer allowed to collect service charges from property owners

New Law comes into effect removing developers from setting charges or collecting funds

This forms one of the key changes of the Common Properties Law, No. 6 of 2019, which comes into effect on Tuesday (November 19).

  • The collected funds will go into the service accounts of seven - so far - approved banks. “From now on, homeowners get to see the breakup of each fil they have paid for the upkeep of their building’s common areas

  • And they will not have to pay for any hike in service charges unless it has been vetted by RERA or its approved financial auditor.

  • This will increase the transparency of an electronic system and the audits will bring service charges in Dubai.

  • Developers in Dubai have only a month left to start invoicing all service charges on ready properties through the Dubai Land Department’s electronic records.

In other words, what this means is they can no longer collect any service charges on behalf of property owners. Property owners — or approved property management companies acting on their behalf — will assume all such collection responsibilities.

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Search and composed by: Sheher Bano

This article has been composed merely for information purposes. Reader might not take legal assistance or advice from the above mentioned.

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