UAE’s real estate business has always been booming and targeting customers. For complex structures, the law has allowed Joint Owners to take responsibility for the management of such areas. The perks of living in an apartment community helps with multiple issues, however there must be regulations which are followed for optimal maintenance and sustainable planning.
In the UAE the Dubai Law Number 27 of 2007 is imposed on owners association and community living that helps define what is the responsibility of the owners association:
- Owners Association of any community are non-profit bodies that are legally independent from its members that can sue or be sued in its own name.
- The Manager of the Owners Association will represent the community before court and other relevant authorities.
- The Association is bound to obtain a license from the Land Department and is responsible for the management, operation and maintenance of common areas which are included in the Owners Association.
- The Owners Association can delegate its powers and responsibilities to any person or company, if applicable, in accordance with agreed terms and for remuneration.
In 2019, the above law was amended as there were certain unclear regulations and provisions which were unambiguous to the real estate industry. The Law Number 6 of 2019 concerning the Jointly Owned Properties highlighted the following features:
- The present Jointly Owned Property Law introduces a three-tiered management system to maintain, repair and manage the common areas, based upon the types of real estate projects such as the major projects, hotel projects and the real estate projects.
- In the case of major projects, the developer is vested with the managerial responsibilities. The developer may further appoint a management company approved by the RERA to carry out the responsibilities on his behalf.
- In case of hotel projects, the developer is required to appoint a hotel project management company with the approval of the Real Estate Regulatory Authority (RERA) to manage.
- For real estate projects apart from the major projects and the hotel projects, specialized management companies shall be formed by RERA in line with the rules and regulations as specified by the resolution issued by the director general.
The law also named the Owners Association for Jointly Owned Properties as the ‘Owners Committee’.
As of now, these are the current regulations that are still being strictly enforced to all Jointly Owned real estate properties.
