Law Informations
Ownership of Jointly Owned Real Property in the Emirate of Dubai
Number: Law No. (6) of 2019
Issued On: 4 September 2019
Type: Federal Law
Law No. (6) of 2019
Concerning
Ownership of Jointly Owned Real Property in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil Code of the United Arab Emirates and its
amendments;
Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law No. (27) of 2007 Concerning Ownership of Jointly Owned Real Property in the Emirate
of Dubai;
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai
and its amendments;
Law No. (7) of 2013 Concerning the Land Department;
Decree No. (22) of 2009 Concerning Special Development Zones in the Emirate of Dubai;
Decree No. (17) of 2013 Concerning Licensing and Classification of Hotel Establishments in
the Emirate of Dubai;
Decree No. (26) of 2013 Concerning the Rental Disputes Settlement Centre in the Emirate
of Dubai; and
The legislation establishing and regulating free zones in the Emirate of Dubai,
Do hereby issue this Law.
Title of the Law
Article (1)
This Law shall be cited as “Law No. (6) of 2019 Concerning Ownership of Jointly Owned Real Property in the Emirate of Dubai”.
Title of the Law
Article (1)
This Law shall be cited as “Law No. (6) of 2019 Concerning Ownership of Jointly Owned
Real Property in the Emirate of Dubai”.
Definitions
Article (2)
The following words and expressions, wherever mentioned in this Law, shall have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate : The Emirate of Dubai.
Government : The Government of Dubai.
Executive Council : The Executive Council of the Emirate of Dubai.
DLD : The Land Department.
RERA : The Real Estate Regulatory Agency.
RDSC : The Rental Disputes Settlement Centre in the Emirate.
Competent Authority : The authority in charge of issuing building permits and
approving community plans in the Emirate.
Director General : The director general of the DLD.
CEO : The chief executive officer of RERA.
Real Property Register : The register regulated pursuant to the above-mentioned Law
No. (7) of 2006.
Master Developer : A Person who is licensed to conduct Real Property
development business in the Emirate and to dispose of Real
Property units to others, and who is classified as a master
developer in accordance with the legislation in force in the
Emirate.
Sub-developer : A person who is licensed to conduct Real Property
development business in the Emirate and to dispose of Real
Property units to others; who is granted by a Master
Developer the right to develop part of a Master Project,
in accordance with the provisions of a Master Community
Declaration; and who is classified as a sub-developer in
accordance with the legislation in force in the Emirate.
Developer : A Master Developer or a Sub-Developer.
Master Project : A project which involves developing vacant land, constructing
infrastructure and common service facilities thereon,
subdividing that land for the purpose of sale, and
constructing residential, commercial, or mixed-use multi
storey buildings or compounds; and which is classified
by RERA as a master project in accordance with the relevant
criteria approved by the Director General.
Jointly Owned Real Property : A building, including the parts and appurtenances
allocated for common use, and the land on which
that building is constructed; or land which is
subdivided into Units or land plots intended for
individual ownership.
Major Project : Any Jointly Owned Real Property designated as a
major project in accordance with the relevant criteria
approved by the Director General.
Hotel Project : Any Real Property whose Units are intended for joint
ownership, and which is licenced for use as a Hotel
Establishment by the Competent Authority. This
includes hotels, hotel villas, hotel apartments, and
hotel rooms.
Unit : A flat, shop, office, warehouse, floor, whole or part
of a land plot, town house, or independent house
that constitutes part of Jointly Owned Real Property
and is intended for residential, commercial,
industrial, or any other use.
Master Plan : A set of plans and design and engineering drawings
of a Master Project which are prepared by the
Master Developer and approved by the DLD and the
Competent Authority.
Site Plan : A map prepared by the Developer, and approved by
the DLD and the Competent Authority, which
delineates the boundaries of a building in Jointly
Owned Real Property.
Plans : These include Master Plans and Site Plans.
Common Facilities : The areas and spaces demarcated on a Master
Plan as common facilities which are owned by
the Developer, subject to ownership limitations,
and are designated for common use and for serving
the Master Project. This includes gardens, landscape
areas, fountains, streets, ponds, swimming pools,
playgrounds, public areas, public car parks,
pedestrian walkways, beaches, and other facilities.
Common Parts : The parts of Jointly Owned Real Property, as shown
on the Site Plan, designated for common use by the
Owners and Occupants of Units.
Designated Common Parts : The Jointly Owned Real Property parts, connections,
fittings, equipment, or facilities designated for
exclusive use by certain Owners rather than others.
Developer-owned Areas : The areas and spaces, other than Common Facilities
and Common Parts, that are specified on a Master
Plan or a Site Plan, owned by the Developer, and
designated by him for private, commercial, or
investment use.
Owner : A Person registered in the Real Property Register as
an Owner of a Unit, including the holder of a
usufruct or long-term lease right pursuant to the
above-mentioned Law No. (7) of 2006; or a
Developer in respect of unsold Units.
Master Community Declaration : The conditions and provisions governing the
development and operation of a Master Project and
the Jointly Owned Real Property and Common
Facilities therein, including the planning and
construction standards of the Master Community.
Building Management Regulation : A document prepared in accordance with the
relevant bylaws issued by the DLD, and entered in
the Jointly Owned Real Property Register, which
states the procedures for maintenance of Common
Parts, including equipment and services in any part
of another building, and the percentages of
contribution of Owners in the relevant costs.
Owners Committee : A committee constituted from amongst Owners in
accordance with the provisions of this Law.
Statute : The rules and provisions governing an Owners
Committee, which are established and approved in
accordance with the provisions of this Law.
Service Charges : The annual charges collected from Owners to cover
the cost of management, operation, maintenance,
and repair of Jointly Owned Real Property.
Usage Charges : The annual charges collected from Owners or
Sub-developers in return for the management,
operation, maintenance, and repair of Common
Facilities.
Occupant : Any person using a Unit for its intended purposes,
including an Owner, a tenant, or any other person
authorised by the Owner to use the Unit.
Management Company : A sole proprietorship or a company recognised by
RERA and specialised in managing Common
Facilities, Jointly Owned Real Property, or Common
Parts, as the case may be.
Hotel Project Management Company: A sole proprietorship or a company recognised by
RERA and specialised in managing Hotel Projects
and their Common Parts in accordance with the
provisions of this Law.
Management Entity : An entity in charge of managing Common Facilities,
Jointly Owned Real Property, or Common Parts in
accordance with the provisions of this Law. This
includes Developers, Management Companies, or
Hotel Project Management Companies, as the case
may be.
Utility Services : These include water connection or supply; gas
connection or supply; electricity; air conditioning;
telephone; computer, television, and
telecommunication cables; sewerage; rain water
drainage; garbage and waste removal or disposal;
mail, parcel, or cargo delivery; and horticulture and
agriculture services, as well as any systems or
services intended for improving Common Facilities
or Common Parts.
Scope of Application
Article (3)
The provisions of this Law shall apply to all Master Projects and Jointly Owned Real
Property in the Emirate, including those in Special Development Zones and in free zones.
Jointly Owned Real Property Register
Article (4)
a. The DLD shall maintain a special register of Jointly Owned Real Property, which contains
the following:
1. details of the land plots owned by Developers on which Jointly Owned Real Property
are to be constructed;
2. details of Units that are intended for individual ownership in Jointly Owned Real
Property and sold by Developers, and names of Owners of these Units;
3. details of members of Owners Committees;
4. Building Management Regulations;
5. Plans;
6. details of Management Entities;
7. the contracts for management of Jointly Owned Real Property or Common Parts;
8. statement of the total area of Common Parts and Designated Common Parts, and its
ratio to the total area of Units in Jointly Owned Real Property; and
9. details of Developer-owned Areas in Jointly Owned Real Property.
b. Upon the request of concerned parties, the DLD shall issue the certificates, deeds,
or other documents related to Units or Jointly Owned Real Property based on the
information in the register referred to in paragraph (a) of this Article. Any interested
party shall have the right to access that register.
Ownership Rules
Article (5)
The rules and conditions stipulated in the above-mentioned Law No. (7) of 2006 shall
apply to the ownership of Jointly Owned Real Property.
Jointly Owned Real Property Title Deeds
Article (6)
a. The Plans, Master Community Declaration, Statute, and Building Management
Regulation shall constitute part of the title deed of Jointly Owned Real Property. The
DLD shall maintain an original copy of each of these documents.
b. An Occupant shall be under an obligation towards the Developer, the Owner, the
Occupants of other Units, and the Owners Committee to comply with the Master
Community Declaration, Statute, and Building Management Regulation to the extent
that their provisions apply to that Occupant.
c. A Developer must, upon completing the construction of the Jointly Owned Real
Property and obtaining a completion certificate from the Competent Authority, file
the documents referred to in paragraph (a) of this Article with the DLD within sixty
(60) days from the date of issue of the completion certificate. The DLD may extend
this time limit for a period not exceeding thirty (30) days, provided that the Developer
provides valid reasons for the extension that are acceptable to the DLD.
d. The Developer›s obligation under paragraph (c) of this Article does not include filing
the Building Management Regulation where it is prepared by RERA.
e. Where the Developer fails to submit the documents referred to in paragraph (a) of this
Article within the time limit stated in paragraph (c) thereof, the DLD may request any
entity, as it deems appropriate, to file and maintain these documents with the DLD; in
which case, the Developer shall be held liable for all the expenses and costs incurred in
this regard.
f. The DLD shall issue and update the maps of Common Parts, Designated Common
Parts, and Common Facilities in accordance with the provisions of this Law.
Components of Common Parts
Article (7)
a. The Common Parts of a building include, without limitation, the following:
1. the structural components of the Jointly Owned Real Property, including the main
supports, foundations, columns, structural walls, ceilings, ceiling joists, staircases,
stairwells, faades, and roofs;
2. unless otherwise indicated on the Site Plan, thresholds; halls; parking aisles;
entrances; emergency exits; and windows in external walls;
3. unless otherwise indicated on the Site Plan, watchmen rooms; recreational facilities
and equipment; swimming pools; gardens; storage facilities; offices; and car parks
designated for use by the Management Entity, the Owners Committee, or visitors;
4. equipment and systems of main utilities, including electricity generators; lighting
systems; gas, cold and hot water, and heating and cooling systems and equipment;
air conditioning systems; and waste collection and treatment facilities;
5. elevators, tanks, pipes, generators, chimneys, ventilation fans and ducts, air
compressor units, and mechanical ventilation systems;
6. water mains; sewer pipes; gas pipes and chimneys; and electrical and
telecommunications towers, wiring, and conduits serving the Owners of more than
one (1) Unit;
7. equipment used for measuring the provision or supply of Utility Services
8. any other parts outside the boundaries of Units which are necessary or required
for the existence, maintenance, sustainability, safety, or operation of the Jointly
Owned Real Property; and
9. any other Common Parts indicated on the Site Plan.
b. The Common Parts of a land plot include, without limitation, the following:
1. roads, roundabouts, intersections, pathways, pavement edges, median strips,
viaducts, drainage systems, and all related structures;
2. unless otherwise indicated on the Site Plan, lakes; ponds; canals; parks; fountains;
water features; and other waterways, including all equipment related thereto;
3. unless otherwise indicated on the Site Plan, landscape areas; public areas;
playgrounds; rest areas; and car parks designated for use by the Management
Entity, the Owners Committee, or visitors;
4. the wires, cables, pipes, drains, ducts, machinery, and equipment used to supply
Units or Common Parts with various services;
5. equipment used for measuring the provision or supply of Utility Services; and
6. any other Common Parts indicated on the Site Plan.
Developer-owned Areas
Article (8)
When obtaining the approval of a Master Plan or Site Plan for the first time, the Developer
may, subject to the approval of the DLD and the Competent Authority, designate areas
owned by the Developer on the Master Plan or Site Plan for private, commercial, or
investment use. This approval may only be granted, and the Developer-owned areas may
only be used, subject to the provisions of the Master Community Declaration and the
rights of Owners.
Unit Components
Article (9)
a. Unless otherwise indicated on the Site Plan, each Unit in a building or part of a building
includes, without limitation, the following:
1. floors and flooring materials and components down to the base of the joists, and
other structures supporting the floor of the Unit;
2. plaster ceilings and all other types of ceilings, additions that form part of the
interior of the Unit, spaces between such ceilings, ceilings above the support walls
and structures inside the Unit, and walls separating the Unit from other parts of
the Jointly Owned Real Property or any adjacent Units or Common Parts
3. the internal area, non-support internal walls, and surrounding walls of the Unit;
4. windows, glass, fixtures that form part of the internal windows, lighting systems,
doors, door frames, and all equipment and fixtures serving the Unit;
5. bathrooms and other integral parts of the Unit, such as balconies and other
ancillary parts allocated to the Owner;
6. facilities attached or allocated to the Unit, such as gardens, car parks, storage
rooms, or watchmen rooms, even if such facilities are not adjacent to the unit,
provided that these facilities are attached to the Unit and their area is not included
in the net area of the Unit;
7. internal connections serving the Unit;
8. fixtures and fittings installed by the Occupant;
9. additions, modifications, and improvements made to the Unit from time to time;
and
10. any other components indicated on the Site Plan.
b. For the purposes of application of the provisions of paragraph (a) of this Article, a Unit
does not include the Utility Services therein which serve the Common Parts or any
other Unit.
c. Unless otherwise indicated on the Site Plan, each Unit in any Jointly Owned Real
Property comprising land, rather than a building or part of a building, shall include,
without limitation, everything within the boundaries of the Unit other than the Utility
Services that serve the Common Parts or any other Unit.
d. Each Unit intended for individual ownership is entitled to the right of way in other
Units or land plots, and in Common Parts.
e. The dividing walls between two (2) adjacent Units shall be shared by the Owners of
both Units, provided that these walls are part of the Common Parts.
Car Parks designated for Units
Article (10)
a. The car parks allocated or designated to a Unit under the legislation applicable by the
Competent Authority shall be deemed an integral part of the Unit, and may not be
separated, or sold independently, from that Unit.
b. A Developer must register Units and their designated car parks in the names of
respective Owners in accordance with the relevant instructions issued by the Director
General. In all events, a Unit may not be sold or disposed of without the car parks
designated to it.
c. An Owner may purchase additional car parks, provided that such car parks are in
excess of those designated for all Units in the Jointly Owned Real Property under the legislation and instructions referred to in paragraphs (a) and (b) of this Article. The
Director General may prescribe the cases in which Owners may purchase additional
car parks.
Ownership of Interest in Common Parts
Article (11)
An Owner, or a Developer in respect of unsold Units, shall own an undivided interest in
Common Parts. This interest shall be determined based on the ratio of the Unit area to the
total area of the Jointly Owned Real Property.
Disposing of Jointly Owned Real Property Units
Article (12)
A Unit Owner may sell or dispose of his Unit in any legal manner, and may mortgage his
Unit to any bank or financing institution licensed to operate in the Emirate.
Subdivision of Jointly Owned Units
Article (13)
A Unit jointly owned by two (2) or more Persons may not be subdivided amongst them
unless that subdivision is permitted under the Master Community Declaration; the DLD
approval is obtained; and the necessary licenses are granted by the Competent Authority.
Pre-emption Rights
Article (14)
a. A co-owner of a Unit shall have a pre-emption right to purchase another co-owner’s
share in the Unit if that share is offered for sale or disposition to a non-Owner. Where
more than one (1) co-owner exercises this right, each of them shall be entitled to
purchase a share proportional to his existing share in the Unit.
b. The pre-emption right prescribed under paragraph (a) of this Article shall not be
established in case of sale or disposition of the co-owner’s share to any ascendants,
descendants, spouse, relatives up to the fourth degree, or in-laws up to the second
degree.
Exercise of Pre-emption Rights
Article (15)
a. A pre-emption right may not be divided and may only be exercised or waived in whole.
In case of multiple co-owners, each of them may exercise his pre-emption right in
proportion to his share in the relevant Unit; and if any of them waives his right, it shall
be transferred to the other co-owners in proportion to their existing shares.
b. A pre-emption right shall be forfeited if the co-owner offering to sell or dispose of his
share serves on the other co-owners, through a notary public, a written notice that
states the name and address of the third-party purchaser and the terms of sale, but
none of these co-owners agrees to such terms of sale within thirty (30) days from
receipt of that notice.
c. Where a co-owner agrees to purchase the offered share, he must notify his intention
to the co-owner offering to sell or dispose of his share, through a notary public, within
the notice period referred to in paragraph (b) of this Article; and must finalise the sale
procedures with the DLD within no later than ten (10) working days from the date of
expiry of that notice period.
d. If it is proven that the sale made pursuant to this Article is concluded under terms that
are more favourable to the purchaser than those mentioned in the notice sent to the
co-owners having the pre-emption right, these co-owners may file, with the RDSC,
claims against the seller for compensation for the damage they have sustained.
Leasing out Units
Article (16)
a. An Owner may lease out his Unit, provided that he and the tenant remain under an
obligation towards other Owners and Occupants, the Owners Committee, and the
Management Entity to comply with the Statute, the Master Community Declaration,
and the Building Management Regulation.
b. Unless otherwise stipulated in the Unit lease agreement, the Owner shall be liable
to pay the Service Charges and Usage Charges. In all events, the Owner may not be
discharged from his liability to pay the Service Charges and Usage Charges if the
tenant fails to pay the same as prescribed under this Law.
Disposition of Common Parts and Common Facilities
Article (17)
a. In all events, Common Parts may neither be converted into private property; nor
subdivided; nor disposed of in whole or in part, independently from the Units to which
they pertain, without first obtaining the approval of the DLD and the Competent
Authority. This applies even if the building to which the Common Parts belong is under
construction. The Director General shall issue a resolution prescribing the rules for
using the proceeds generated from such a conversion, subdivision, or disposition.
b. Unless the relevant prior approvals of the DLD and the Competent Authority are
obtained, it is prohibited to dispose of Common Facilities in any manner whatsoever;
or utilise, alter, redesign, or shut down these facilities in a manner that restricts their
use by Owners.
Management of Common Parts
Article (18)
a. For the purposes of management of Common Parts, Jointly Owned Real Property is
classified into three (3) categories as follows:
1. Category 1: Major Projects Projects in this category shall be determined in
accordance with the criteria prescribed under the relevant resolution issued by
the Director General. The Developer shall be responsible for the management,
operation, maintenance, and repair of Common Parts and Utility Services. A Major
Project shall have an Owners Committee constituted of members selected by RERA
from amongst Owners residing in the Jointly Owned Real Property. The duties of
the Owners Committee shall be determined pursuant to the Statute and the rules
and conditions prescribed under the relevant resolutions of the Director General.
2. Category 2: Hotel Projects These are projects wherein the management of Common
Parts must be outsourced by the Developer to a Hotel Project Management
Company in accordance with the relevant rules approved by the Director General.
A Hotel Project shall have an Owners Committee constituted of members selected
by RERA if the Hotel Project Management Company expresses its wish that such
a committee be constituted. This Owners Committee shall not be authorised to
participate in the management of the Hotel Project or its Common Parts.
3. Category 3: Real Property Projects Other Than Major Projects and Hotel Projects
These are Real Property projects other than those falling in Category 1 and Category
2, as referred to in this paragraph. The management of Common Parts in these
projects shall be undertaken by a specialised management company selected and
contracted by RERA in accordance with the relevant rules and standards approved
pursuant to the relevant resolution issued by the Director General. A Real Property
project in this category shall have an Owners Committee constituted of members
appointed by RERA as prescribed under this Law.
b. Where the Jointly Owned Real Property includes a project of Category 2 and a project
of Category 3, as referred to in paragraph (a) of this Article, the Common Parts in
that Jointly Owned Real Property shall be outsourced to a Hotel Project Management
Company. In this case, the Jointly Owned Real Property shall have a single Owners
Committee constituted of members appointed by RERA as prescribed under this Law.
c. The Developer may outsource all or any of his duties, and delegate all or any of his
responsibilities, under sub-paragraph (a)(1) of this Article to a Management Company
in return for the fees, and subject to the conditions, agreed upon by both parties. This
agreement must be approved by RERA.
d. In case of absence of a Developer in a project that falls in Category 1 or Category 2, as
stated in paragraph (a) of this Article, a Management Company shall be appointed by
RERA.
Management of Common Facilities
Article (19)
The Master Developer of a Master Project shall undertake the management and
maintenance of the Common Facilities in that project. The Master Developer must
outsource such management and maintenance to a Management Company pursuant to
a written agreement approved in advance by RERA.
Building Management Regulations
Article (20)
a. A Developer shall issue the Building Management Regulations of the Major Projects
and Hotel Projects managed by that Developer. Building Management Regulations
must be approved by RERA before making any legal disposition in respect of the Units
comprising the Jointly Owned Real Property in the Major Project or Hotel Project in
accordance with the provisions of this Law, the resolutions issued in pursuance hereof,
and the Master Community Declaration.
b. RERA shall issue the Building Management Regulations of Jointly Owned Real Property
other than the projects referred to in paragraph (a) of this Article, provided that
such Jointly Owned Real Property has no Building Management Regulation. In this
regard, RERA may engage any specialised company to assist it in drafting the Building
Management Regulation
c. If a part of the Jointly Owned Real Property is developed in phases, the Building
Management Regulation for that developed part must be issued.
Master Community Declarations
Article (21)
The Master Developer of a Master Project shall issue the Master Community Declaration
of that project before making any legal disposition in respect of the land, buildings, or
Units of the project. The Master Community Declaration must be approved by RERA. Any
amendment to that Master Community Declaration, affecting in any way the rights of
purchasers, may not be made without first obtaining the relevant approval of RERA.
Owners Committees
Article (22)
a. The Owners Committee of a Real Property project that falls in Category 1 or Category 3,
as stated in paragraph (a) of Article (18) of this Law, shall be constituted of a maximum
of nine (9) members appointed by RERA, including the committee chairman and vice
chairman.
b. An Owners Committee shall be constituted upon the registration of at least ten
percent (10%) of the total Units of the Jointly Owned Real Property on the Real Property
Register in the names of their respective Owners.
c. A member of an Owners Committee must:
1. be of full legal capacity;
2. be an Owner residing in the Jointly Owned Real Property;
3. be of good character and repute;
4. pay the Service Charges and Usage Charges; and
5. attend, and actively participate in, the meetings of the Owners Committee.
d. A Developer may be a member of the Owners Committee only if he owns unsold Units
in the Jointly Owned Real Property.
e. An Owners Committee shall elect from amongst its members the chairman of that
committee, who shall represent it before the Management Entity and RERA.
f. The provisions and conditions stipulated in this Law, the resolutions issued in pursuance
hereof, and the Statute shall apply to Owners Committees.
g. Subject to the provisions of this Law, RERA shall issue Statutes.
h. The membership of an Owner in the Owners Committee shall be terminated if he
ceases to meet any of the membership requirements stipulated in paragraph (c) of
this Article, in which case RERA shall appoint a replacement member who meets these
requirements.
i. RERA may, at any time, reconstitute an Owners Committee, provided that the new
members meet the Owners Committee membership requirements.
Meetings of Owners Committees
Article (23)
a. An Owners Committee shall be regularly convened every three (3) months, i.e. four (4)
times a year; and its first meeting shall be convened within thirty (30) days from the
date of its constitution. Meetings of the Owners Committee shall be valid if attended
by the majority of its members, provided that its chairman or vice chairman is in
attendance.
b. Where necessary, the Owners Committee may convene an extraordinary meeting,
provided that it notifies RERA in advance of the date and time of this meeting and the
reasons for convening the same.
c. When voting on the resolutions and recommendations of the Owners Committee,
each of its members shall have one (1) vote, whether he owns one (1) Unit or multiple
Units in the Jointly Owned Real Property. In the event of a tie, the chair of the meeting
shall have a casting vote.
d. The Management Entity must designate a place for holding the Owners Committee
meetings, and must appoint a rapporteur of the Owners Committee to prepare the
reports and minutes of these meetings.
Duties of Owners Committees
Article (24)
An Owners Committee shall exclusively:
1. verify that the Management Entity undertakes the management, operation,
maintenance, and repair of the Common Parts in accordance with this Law, the
resolutions issued in pursuance hereof, and the Building Management Regulation;
2. review, and provide the necessary recommendations on, the annual budgets for the
maintenance of the Jointly Owned Real Property; and for this purpose, request the
Jointly Owned Real Property financial reports;
3. discuss the obstacles and difficulties related to the management, operation,
maintenance, and repair of Common Parts; and submit the necessary recommendations
on the same to the Management Entity or RERA, as the case may be;
4. receive, and notify to the Management Entity, the complaints and suggestions submitted
by Owners and Occupants in respect of the management, operation, maintenance,
and repair of Common Parts; and submit these complaints and suggestions to RERA if
the Management Entity fails to address them within fourteen (14) days from the date
of being notified of the same;
5. request RERA to replace the Management Entity of any Real Property project that
falls in Category 3, as stated in paragraph (a) of Article (18) of this Law; and provide
appropriate advice to RERA on the selection and appointment of a new Management
Entity;
6. notify the Management Entity or RERA of any defects in the structural parts of the
Jointly Owned Real Property; or any damage to, or defect in, the Common Parts that
requires urgent repair;
7. coordinate with RERA, the Management Entity, or the Competent Authority with
respect to any safety, environmental, security, or other matter related to the Jointly
Owned Real Property; and
8. submit to the Management Entity any proposals regarding the method of use of
Common Parts; or regarding amendment of the Building Management Regulation, in
which case the amendment must be approved by RERA.
Service Charges
Article (25)
a. An Owner shall pay to the Management Entity his share of the annual Service Charges
to cover the Common Parts management, operation, maintenance, and repair expenses.
This share shall be calculated, using the relevant method approved by the Director
General, based on ratio of the area of the Owner’s Unit to the total area of the Jointly
Owned Real Property. A Developer shall pay his share of the annual Service Charges
in respect of unsold Units, and in respect of the sold Units for which he undertakes,
under the provisions of the sale contract or reservation agreement, to pay the Service
Charges on behalf of the purchaser.
b. For the purposes of application of paragraph (a) of this Article, the Owner’s share of
the Service Charges shall be calculated based on the area of his Unit as recorded in the
Real Property Register.
Usage Charges
Article (26)
A Master Developer shall be entitled to collect Usage Charges from Owners or Subdevelopers in return for the management, operation, maintenance, or repair of the
Common Parts in the Master Project. Such Usage Charges apply in respect of completed
buildings, under-construction buildings, and vacant land. The Owner or Sub-developer’s share of the Usage Charges shall be calculated using the method adopted pursuant to
the relevant resolution issued by the Director General, provided that this method is in
compliance with the approved Master Community Declaration.
Approval of Service Charges and Usage Charges
Article (27)
a. A Management Entity must not charge Owners, or collect from them, any amounts
whatsoever in return for the management, operation, maintenance, or repair of
Common Parts or Common Facilities; or for any other reason, without first obtaining
the relevant approval of RERA. This approval shall be issued in accordance with the
approved Master Community Declaration and the relevant rules and criteria approved
by the Director General.
b. For the purposes of application of paragraph (a) of this Article, RERA may not approve or
ratify the Service Charges or Usage Charges budget unless it is approved by a certified
audit firm recognised by RERA for this purpose.
c. Where necessary, RERA may approve a temporary Service Charges budget until the
budget referred to in paragraph (b) of this Article is approved. The temporary budget
shall be approved in accordance with the rules prescribed under the relevant resolution
issued by the Director General.
Non-payment of Service Charges or Usage Charges
Article (28)
An Owner or Sub-developer may not refrain from paying the Service Charges or Usage
Charges approved by RERA. An Owner may not waive his interest in Common Parts to
avoid paying the charges due from him.
Preventing Owners from Using Units
Article (29)
A Developer or Management Entity must not take any action against any Owner to
prevent him from taking possession of, or using, his Unit or using Common Parts or
Common Facilities, with the intent of forcing him to pay Service Charges or Utility Services
in contravention of the procedures stipulated in this Law and the resolutions issued in
pursuance hereof. Deposit and Disposition of Service Charges
Article (30)
a. A Management Entity must open a Service Charges account for each Jointly Owned
Real Property with a bank licensed to operate in the Emirate and recognised by RERA.
b. In accordance with the rules prescribed under the relevant resolution issued by the
Director General, the Management Entity must deposit the Service Charges it collects
in the account referred to in paragraph (a) of this Article within seven (7) working days
from the date of collection of these charges.
c. The amounts deposited in the Service Charges account may not, for any reason
whatsoever, be subject to attachment in favour of the Management Entity creditors.
d. Until a Management Company is appointed by RERA, the Developer must undertake
the management of the Jointly Owned Real Property and maintain the Service Charges
paid by Owners in the relevant Service Charges account, as prescribed by this Law.
e. The funds deposited in the Service Charges account may not be disposed of, and may
only be used for the following purposes:
1. paying for Common Parts cleaning services;
2. paying for security and safety services in the Jointly Owned Real Property;
3. paying for the operation, maintenance, repair, and improvement of Common Parts
and their fixtures, fittings, and installations; and for preserving the same in a good
condition;
4. paying the Jointly Owned Real Property insurance premiums;
5. paying any fees for the audit of the accounts and budgets related to the Service
Charges account;
6. paying the Management Company fees, as per the amount and method of payment
determined by RERA;
7. cover the Developer’s administrative expenses related to Major Projects, as
approved by RERA;
8. creating a cash reserve to cover emergency expenses, or to replace equipment and
devices in Common Parts, which must be deposited in an account separate from
the Service Charges account and may not be disposed of for any purposes, other
than in critical emergencies, without first obtaining the approval of RERA;
9. paying any fees or costs in return for inspecting; or overseeing the management,
operation, maintenance, and repair of, Jointly Owned Real Property by RERA; and
10. covering any other costs prescribed under the Master Community Declaration and
approved by RERA, as required for the management, operation, maintenance, and
repair of Common Parts.
f. Where the cash reserve referred to in sub-paragraph (e)(8) of this Article is not sufficient
to cover emergency expenses, the DLD may, subject to obtaining the relevant prior
approval of RERA, request Owners to cover these expenses. Deposit and Disposition of Usage Charges
Article (31)
a. A Master Developer must open a Usage Charges account for each Major Project with a
bank licensed to operate in the Emirate and recognised by RERA.
b. In accordance with the rules prescribed under the relevant resolution issued by the
Director General, the Management Entity must collect Usage Charges and deposit
them in the account referred to in paragraph (a) of this Article within seven (7) working
days from the date of collection of these charges.
c. Where the Developer uses Common Facilities for profitable commercial purposes
based on the DLD approval, he must deposit a percentage of the net profits generated
from that use in the Usage Charges account within ten (10) days from the date of
collection of the proceeds from use of the Common Facilities. This percentage of net
profits shall be determined pursuant to the relevant resolution issued by the Director
General.
d. The funds deposited in the Usage Charges account shall be used only for the purposes
stated in paragraph (e) of Article (30) of this Law in relation to Common Facilities in the
Major Project.
e. In addition to the purposes mentioned in paragraph (e) of Article (30) of this Law, the
Master Developer may, subject to obtaining the prior approval of RERA, use a portion
of the funds deposited in the Usage Charges account for the purposes of repair and
maintenance in the Developer-owned Areas in the Master Project, provided that these
areas are available for public use without consideration.
f. The amounts deposited in the Usage Charges account may not, for any reason
whatsoever, be subject to attachment in favour of the Master Developer creditors. Collection of Service Charges and Usage Charges
Article (32)
a. The Management Entity shall have a lien on every Unit for unpaid Service Charges in
respect thereof. A Unit may not be disposed of unless these charges are paid to the
Management Entity.
b. Where an Owner fails to pay his share of the Service Charges or any part thereof, the
Management Entity must request him to pay such charges within thirty (30) days from
being served the relevant written notice approved by RERA. In the event of failure of
the Owner to pay the charges within this time limit, the financial claim made by the
Management Entity against the Owner shall be enforceable by the execution judge at
the RDSC in accordance with the relevant rules and procedures adopted by the RDSC. c. Where necessary, the competent execution judge may order that a Unit in respect of
which the Owner fails to pay his share of Service Charges is sold by public auction to
collect these charges.
d. An Owner who defaults in paying his share of Service Charges must pay any court fees
and costs, or advocates’ fees, adjudged by the competent execution judge.
e. RERA shall determine the method of service of the notice referred to in paragraph (b)
of this Article.
f. The provisions of this Article apply to the collection of Usage Charges owed to Master
Developers.
Audit and Inspection
Article (33)
a. RERA shall inspect; and audit the management, operation, maintenance, and repair
of, the Jointly Owned Real Property, Common Parts, and Common Facilities. For these
purposes, RERA shall have the authority to:
1. inspect Jointly Owned Real Property, Common Parts, and Common Facilities; and
verify their suitability for the intended purposes, without prejudice to the functions
of the Competent Authority;
2. record violations and serve notices on Developers or Management Entities, as the
case may be, where it is proven that they have failed to preserve the Jointly Owned
Real Property, Common Parts, or Common Facilities in a good condition; and grant
them time limits as necessary to remedy such violations;
3. audit the revenue credited, and the expenditure debited, to the Service Charges
account and the Usage Charges account; and for this purpose, request any
information, data, or statements and engage a certified auditor recognised by RERA
in this regard;
4. consider the complaints filed against Developers, Management Entities, or Owners
Committees in relation to the management, operation, maintenance, and repair of
Jointly Owned Real Property, Common Parts, and Common Facilities; and take the
necessary action in respect thereof;
5. Audit the contracts and agreements concluded by Management Entities with
maintenance, security, cleaning, insurance, and other corporations and companies;
and
6. exercise any other duties or powers assigned to it by the Director General.
b. RERA may outsource any of its duties and delegate any of its powers under paragraph
(a) of this Article to any natural or legal person in accordance with the relevant
conditions and rules approved by the Director General.
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Conclusion of Contracts and Agreements
Article (34)
a. A Management Entity shall conclude contracts and agreements with maintenance,
security, cleaning, insurance, and other corporations and companies to the extent
required to enable it to perform its duties and obligations as prescribed in this Law.
b. A Management Entity must provide RERA, every six (6) months, with a periodic report
on the management of, and the maintenance works performed in, Jointly Owned Real
Property, Common Parts, and Common Facilities. Where necessary, RERA may request
the Management Entity to provide it with any information or with a statement of the
revenue and expenditure related to Service Charges or Usage Charges.
Repair and Maintenance Works
Article (35)
a. Where it is established to the satisfaction of RERA that Common Parts or Common
Facilities are not duly maintained, or not preserved in a good, clean, and serviceable
condition, RERA may serve a written notice on the Management Entity requesting it
to take any necessary action or perform the relevant repair or maintenance works it
deems appropriate.
b. RERA must state in the notice referred to in paragraph (a) of this Article, the required
repair and maintenance works and the dates of commencement and completion of
such works.
c. Where the Management Entity fails to perform repair or maintenance works in
accordance with paragraph (a) of this Article, RERA may appoint any other entity to
perform all or any of these works; and debit the costs and expenses incurred in this
regard to the Service Charges account or to the Usage Charges account referred to in
Article (30) and Article (31) of this Law respectively.
Security Deposit for Repair of Common Parts and Common Facilities
Article (36)
a. A Management Entity must provide a bank guarantee, in favour of the DLD and in the
amount it determines, with respect to all Jointly Owned Real Property managed by
that Management Entity. The bank guarantee shall be held as a security deposit to be
used to remedy any damage sustained by Common Parts or Common Facilities as a
result of omission or negligence on the part of the Management Entity.
b. Where Jointly Owned Real Property, Common Parts, or Common Facilities sustain
damage as a result of any act, negligence, or omission of the Management Entity,
RERA may serve a written notice on the Management Entity requesting it to remedy
such damage within the time limit specified by RERA.
c. Where the Management Entity fails to remedy the damage within the time limit
specified in the notice served on it pursuant to paragraph (b) of this Article, RERA may
appoint any other entity to fulfil all or any of the requirements stated in the notice
and deduct the costs and expenses incurred in this regard from the bank guarantee
referred to in paragraph (a) of this Article.
Incompetence of Developers or Hotel Project Management Companies
Article (37)
a. Where a Developer or Hotel Project Management Company is proven incompetent
or unable to manage Jointly Owned Real Property or Common Parts in projects that
fall in Category 1 or Category 2, as stated in paragraph (a) of Article (18) of this Law, in
a manner that ensures their sustainability and serviceability, the CEO may appoint a
specialised Management Company to undertake the management and operation of
that Jointly Owned Real Property or Common Parts.
b. The provisions of paragraph (a) of this Article shall apply if a Master Developer is
proven incompetent or unable to manage the Common Facilities in a Master Project in
a manner that ensures their sustainability and serviceability.
Incompetence of Management Companies
Article (38)
a. Where RERA deems that a Management Company is incompetent, unqualified, or
unable to manage and maintain Common Parts in Real Property projects that falls
in Category 3, as stated in paragraph (a) of Article (18) of this Law, RERA may appoint
a replacement Management Company to undertake the management of the Jointly
Owned Real Property. In this case, RERA must adhere to the following procedures:
1. notify the Owners Committee of the violations committed by the Management
Company, and seek its opinion regarding such violations;
2. serve a written warning on the Management Company stating its mistakes and
wrong practices with respect to the management, operation, maintenance, and
repair of Common Parts; whereupon the Management Company may respond
to that written warning within fourteen (14) days from the date of service of the
warning;
30 31
3. appoint a certified audit firm to audit the Service Charges account and verify the
Management Company’s compliance with the Service Charges budget approved by
RERA; and
4. grant the Management Company a time limit to hand over the management
of the Jointly Owned Real Property to the replacement Management Company
within thirty (30) days from the date of issue of RERA’s decision appointing that
replacement Management Company.
b. Where any damage to property in the Jointly Owned Real Property or Common Parts
is caused by the acts of the substituted Management Company, that company shall be
liable for the cost of remedy of this damage, which shall be deducted from the bank
guarantee provided by that company, as referred to in paragraph (a) of Article (36) of
this Law.
Alterations to Jointly Owned Real Property
Article (39)
a. Without prejudice to the construction legislation in force in the Emirate, an Occupant
may make substantial alterations or modifications to the structure or external
appearance of his Unit, or to any part of the Jointly Owned Real Property, only after
obtaining the approval of the Master Developer, the DLD, and the Competent Authority.
b. An Occupant who violates the provisions of paragraph (a) of this Article shall be liable
for remedying, at his own expense and in the manner prescribed by Master Developer
or RERA, any damage arising from the alterations or modifications made by him.
c. Where an Occupant fails to remedy the damage in accordance with paragraph (b) of
this Article, RERA or the Master Developer may appoint any entity to remedy such
damage; and hold the Occupant liable for the remedy costs and expenses.
d. Subject to the provisions of the Building Management Regulation, an Occupant and
his guests must use Common Parts only for their intended purposes, and in a manner
that does not prejudice the rights of others to use these Common Parts, disturb them,
or endanger their safety or the safety of the Jointly Owned Real Property.
Liability of Developers
Article (40)
a. Subject to the provisions governing contractor agreements, as stipulated in the abovementioned Federal Law No. (5) of 1985, a developer shall remain liable, for a period of
ten (10) years from the date of obtaining the completion certificate of the Real Property
project developed by him, to remedy or rectify any defects in the structural parts of the
Jointly Owned Real Property.
b. The Developer shall remain liable, for a period of one (1) year from the date of handover
of the Unit to the Owner, for repairing or replacing defective installations in the
Jointly Owned Real Property. These include mechanical and electrical works, sanitary
and sewerage installations, and similar installations. Where an Owner refrains from
taking possession of his Unit for any reason, the above-mentioned liability period shall
commence from the date of obtaining the completion certificate of the Real Property
project developed by the Developer.
c. Subject to the provisions of paragraphs (a) and (b) of this Article, nothing in this Law
may preclude or prejudice any rights or warranties granted to Owners as against
Developers pursuant to any other legislation.
d. An agreement which is made after this Law comes into force and which contradicts, in
any way, the provisions of this Article shall be deemed null and void.
Insurance of Jointly Owned Real Property
Article (41)
a. A Management Entity must insure the Jointly Owned Real Property under an insurance
policy that covers the maintenance and reconstruction of the Jointly Owned Real
Property in case of fire, damage, or destruction for any reason whatsoever. For these
purposes, the beneficiary of the insurance must be the Management Entity.
b. The Management Entity must insure the Jointly Owned Real Property against the
liability for damage and for bodily injuries sustained by Occupants or third parties.
c. Insurance premiums payable by Owners shall be calculated pursuant to the insurance
contracts concluded with insurance companies, and shall be included in the Service
Charges.
Dispute Resolution
Article (42)
In addition to the functions assigned to the RDSC under the legislation in force, the RDSC
shall have the exclusive jurisdiction to hear and determine all disputes and disagreements
related to the rights and obligations stipulated in this Law and the resolutions issued in
pursuance hereof, in accordance with the relevant rules and procedures adopted by the
RDSC.
32 33
Fees
Article (43)
In return for issuing the approvals and providing the services prescribed under this Law
and the resolutions issued in pursuance hereof, the DLD shall collect the fees determined
pursuant to the relevant resolution issued by the Chairman of the Executive Council.
Sanctions and Administrative Penalties.
Article (44)
a. Without prejudice to any stricter penalty stipulated in any other legislation, a person
who commits any act constituting a violation of the provisions of this Law and the
resolutions issued in pursuance hereof shall be punished by a fine of not less than
one million Dirhams (AED 1,000,000.00). Upon repetition of the same violation within
one (1) year from the date of the previous violation, the amount of the fine shall be
doubled. A fine must not exceed two million Dirhams (AED 2,000,000.00).
b. The acts constituting a violation of the provisions of this Law, and the fines prescribed
for each of these acts, shall be determined pursuant to the relevant resolution issued
by the Chairman of the Executive Council.
Law Enforcement
Article (45)
The persons nominated by a resolution of the Director General shall have the capacity of
law enforcement officers to record the acts committed in breach of the provisions of this
Law and the resolutions issued in pursuance hereof. For this purpose, they may issue the
necessary violation reports and seek the assistance of concerned Government Entities in
the Emirate, including police personnel.
Grievances
Article (46)
Any affected party may submit a written grievance to the Director General against any
decision or measure taken against him under this Law and the resolutions issued in
pursuance hereof, within thirty (30) days from the date of being notified of the contested
decision or measure. The grievance shall be determined, within thirty (30) days from the
date of its submission, by a committee formed by the Director General for this purpose.
Without prejudice to the grievant’s right to recourse to the RDSC to seek any relief, the
decision issued in respect of the grievance shall be final.
Payment of Revenues
Article (47)
The fees and fines collected pursuant to this Law and the resolutions issued in pursuance
hereof shall be paid to the Public Treasury of the Government.
Compliance
Article (48)
a. All Developers, Management Entities, and Owners Associations must comply with the
provisions of this Law within six (6) months from its effective date. Where necessary,
the Director General may extend this grace period for the same period.
b. The provisions of this Law shall apply without prejudice to the provisions of the
contracts concluded before its effective date between Developers and Owners and
the Master Community Declarations approved by and filed with RERA, except for
the provisions related to the exemption applicable to the constitution of Owners
Associations.
Succession of Owners Associations by Management Entities
Article (49)
All rights and obligations of Owners Associations, arising before the effective date of this
Law, are hereby transferred to Management Entities.
Issuing Implementing Resolutions
Article (50)
The Director General shall issue the resolutions required for the implementation of this
Law. These resolutions shall be published in the Official Gazette of the Government of
Dubai.
Repeals
Article (51)
a. The above-mentioned Law No. (27) of 2007 is hereby repealed. Any provision in any
other legislation shall also be repealed to the extent that it contradicts the provisions
of this Law.
b. The bylaws, regulations, and resolutions issued in implementation of the abovementioned Law No. (27) of 2007 shall continue in force, to the extent that they do not
contradict this Law, until new superseding bylaws, regulations, and resolutions are
issued.
34
Publication and Commencement
Article (52)
This Law shall be published in the Official Gazette and shall come into force sixty (60)
days after the date of its publication.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 4 September 2019
Corresponding to 5 Muharram 1441 A.H.
Real Estate & Construction
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