Regulatory Oversight of Service Charges in Dubai’s Jointly Owned Properties: Ensuring Transparency and Accountability

Service charges are essential to the operation, sustainability, and long-term upkeep of Dubai’s jointly owned communities. Historically, property owners have sought greater clarity and confidence in how these funds are allocated and managed. Recognising this, Dubai has developed a robust regulatory framework rooted in Dubai Law No. 6 of 2019 Concerning Ownership of Jointly Owned Real Property (the “JOP Law”) and its implementing regulations under the oversight of the Real Estate Regulatory Agency (“RERA”).


Under this supervised regime, community budgets cannot be issued or collected without RERA’s prior approval, expenditures must align strictly with documented and authorised commitments, and all financial records are subject to independent audit. Digital governance platforms, including the mandatory Mollak system, further ensure real-time regulatory visibility over budget cycles, collection processes, and payments.


Together, these mechanisms reflect Dubai’s “transparency by design” approach, enabling owners to clearly understand how their contributions support the community’s service standards, asset value, and long-term attractiveness.

Understanding Service Charges: Purpose, Scope, and Financial Discipline

Under the JOP Law, service charges constitute a mandatory financial obligation imposed upon every owner within a jointly owned development. They are neither discretionary nor negotiable; rather, they form the core economic framework that enables the ongoing management, preservation, and enhancement of the community’s common property.


These charges are meticulously structured to ensure the funding of essential operational requirements, including but not limited to:

• Maintenance and cleaning of common areas
• Security and access control
• Utilities for shared facilities
• Landscaping and environmental upkeep
• Management fees and community administration


Failure by owners to meet these obligations can undermine both the operational stability and financial integrity of the community, making timely compliance fundamental to sustaining the development’s standards and market reputation.


Complementing day-to-day operational funding, a prescribed share of the service charges is directed into a segregated and regulator-controlled reserve fund, the sole purpose of which is to finance future capital expenditures such as structural repairs, asset replacements, and major refurbishment initiatives. This mechanism, independently scrutinised and approved by RERA, serves to mitigate the risk of unforeseen special levies and ensures that the community remains adequately capitalised for long-term asset protection.

In essence, service charges represent a collective investment by the ownership body. They safeguard the living environment and quality of community services while protecting the sustained market value and legal integrity of the jointly owned property.

Legal Framework Governing Service Charges

Building on the obligations established under the JOP Law, the regulation of service charges is further reinforced through RERA’s Implementing Regulations and compliance directives. These instruments govern how budgets are formulated, reviewed, and authorised, and require that all collections and expenditures remain fully documented and defensible. Financial transactions must be processed through the regulated “Mollak” system, ensuring escrow-controlled handling of owners’ contributions and transparent disclosure of approved budgets and audited statements. This framework provides a clear enforcement mechanism that protects owners from arbitrary charges and ensures that community funds are utilised strictly for their intended purpose.

Safeguarding Owners’ Interests: Rights and Recourse

The regulatory framework governing service charges is underpinned by clear protections that recognise property owners as key stakeholders in community governance. Owners are entitled to transparency over how their contributions are allocated and utilised, including access to RERA-approved budgets, audited financial statements, and supporting documentation that evidences compliance with authorised expenditure.


If owners identify concerns regarding budget validity, improper spending, or the imposition of unapproved charges, they may initiate a formal complaint with RERA. The regulator is empowered to investigate, direct corrective action, and enforce compliance on community managers or developers found to be in breach of financial controls or governance obligations. Where necessary, owners retain the right to pursue further recourse through the competent judicial channels, including the Rental Disputes Centre, particularly in cases involving financial irregularities or unlawful demands.


This structured rights regime ensures that service charge oversight is not unilateral. Owners are afforded meaningful visibility, regulatory backing, and enforceable remedies to safeguard the proper management of their community’s funds and the long-term integrity of jointly owned developments.

Conclusion: A Governance Model Built on Clarity and Confidence


Dubai’s regulatory framework ensures that service charges are managed with discipline, transparency, and accountability at every stage. Through RERA’s strict oversight, mandatory budget approvals, audited financial controls, and digital governance via the Mollak system, owners are provided with clear visibility into how their contributions protect community standards and long-term asset value. By embedding transparency into the core of jointly owned property management, Dubai continues to reinforce investor confidence and support the sustainable growth of its residential and mixed-use developments.

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