New Decision by Dubai Rental Disputes Center
The Dubai Rental Disputes Center has made a new decision according to which the owners of the unit are obliged to pay service fees, even if they have not officially taken their own property, especially if the delay is due to the buyer.
Background of the Decision
This new legal principle aims to solve recurring disputes between owners and real estate developers through responsibility for the costs for the operation and maintaining joint construction facilities. The center showed that a unique situation had triggered legal uncertainty in which units were sold to installments that have not yet been registered according to the names of the buyers.
Reason for the Decision
In several such cases, developers have retained the delivery due to outstanding fees, which raised the question of who should cover the service fees – the buyer or the developer. The case was transferred to the general authority in order to unite principles within the center.
Outcome of the Decision
The authority found that the buyer, whose name appears in the preliminary register of the living unit, has been completed for service fees from the date of the project or from the time of the failure obligation, even if the final ownership has not yet been transferred. This ensures continuous furnishing companies and protects developers and compliant owners from financial burdens.
Legal Basis for the Decision
The center said that this interpretation is anchored in legal figures No. 6 from 2019 to joint properties that regulate the payment of such fees for the coverage of the administration, operation and maintenance costs. According to the law, either the developer or the owner must endure these fees for units that have not been sold, whereby the funds were instructed to the administrative companies to ensure uninterrupted services and efficient building technology.
Reaction to the Decision
Judge Abdulqader Mousa Mohammed, President of the Rental Stand Center, said that this legislative gap was solved by the interpretation of the underlying intention of the law to ensure the stability of common properties and the guarantee of uninterrupted provision of essential services. "If the buyers are responsible for employee fees, the spirit of legislation corresponds. In this way we have set a clear judicial precedent, eliminated the confusion, strengthens a practical approach and confirms our commitment to justice and fair dispute resolution," he said.
Statistics on the Center’s Performance
The center said that it closed 49,817 execution files in connection with common property in 2024. The Dubai Rental Disputes Center completed 443 voting agreements worth 190.7 million in the second quarter and with an average settlement period of six days per case.
