The Dubai Rental Disputes Centre has issued a definitive ruling on property service fees, mandating that buyers must pay charges from project completion, even before formal handover, resolving a long-standing legal ambiguity in the real estate market.
In a landmark decision, Dubai’s Rental Disputes Centre has established a clear judicial principle addressing when property buyers become responsible for service fees in jointly owned buildings. The ruling stems from Law No. (6) of 2019 on Jointly Owned Properties, which regulates payments for managing and maintaining common areas.
The key clarification focuses on scenarios where property units are sold through installment plans but not yet formally registered under the buyer’s name. Previously, this created disputes between developers and buyers about service charge responsibilities.
Key Highlights of the Ruling:
- Buyers listed in the preliminary unit register are liable for service charges from project completion
- Charges apply even if final ownership transfer has not occurred
- Aims to ensure uninterrupted building services and maintenance
“The General Authority has addressed this legislative gap by interpreting the law’s underlying intent to secure the stability of jointly owned properties and guarantee the uninterrupted provision of essential services,” said Judge Abdulqader Mousa Mohammed, President of the Rental Disputes Centre.
The decision reinforces Dubai’s commitment to creating a transparent and efficient real estate regulatory framework. In 2024, the Centre closed 49,817 execution files related to joint ownership and launched a self-execution service for service fee claims.
This ruling not only provides clarity for property buyers and developers but also strengthens Dubai’s reputation as a sophisticated and investor-friendly real estate market.
