The Dubai Rental Disputes Center (RDC) has introduced a new legal precedent clarifying that buyers may be liable for property service charges even before officially receiving their property — if the handover delay results from the buyer’s actions.
Under Law No. 6 of 2019 on Jointly Owned Properties, owners are responsible for paying service fees to support the upkeep of shared facilities in residential or commercial developments.
Delays & Buyer Responsibility
Delays in handover often occur when buyers fail to make timely payments. The RDC has ruled that if a buyer appears in the preliminary property register (pre-registration), they are responsible for service charges starting from the date the project is completed or from when they first defaulted — whichever comes earlier.
Judge Abdulqader Mousa Mohammed, President of the RDC, said this ruling “fills a legal gap and ensures fairness for compliant owners and developers,” while maintaining essential services in buildings and preventing defaults from being used as an excuse to avoid obligations.
What This Means for Owners & Developers
- Buyers who delay transfer or payments may have to settle service fees even before taking handover.
- The decision provides clarity and legal stability for both buyers and developers in jointly owned properties.
- Service providers’ payments are more secure, ensuring smooth building operations and maintenance.
In 2024 alone, the RDC handled nearly 49,817 enforcement cases tied to jointly owned property disputes. It also introduced a self-execution service, allowing property managers to claim unpaid service fees more efficiently.
By establishing this principle, Dubai reinforces transparency in its real estate market and boosts investor confidence.
Source: Gulf News
