Dubai, UAE – The Dubai Rental Disputes Center (RDC) has introduced a significant legal clarification for property owners: buyers are required to pay service charges even before officially taking possession of their property if delays in handover are caused by their own actions.
This new principle addresses a long-standing dispute between developers and buyers regarding responsibility for service fees, especially when units are sold but not yet formally handed over.
Service Fees Under Law
According to Law No. (6) of 2019 on Jointly Owned Properties, service charges are mandatory to maintain shared facilities in residential and commercial buildings. These fees are crucial to ensure smooth building operations and upkeep of amenities.
Responsibility for Delayed Handover
In instances where handovers are delayed due to buyer payment issues, confusion often arises over who should cover ongoing maintenance costs. The RDC clarified that buyers listed in the preliminary property register must pay service charges starting either from the project’s completion or from the date they defaulted on payments—whichever comes first.
Judge Abdulqader Mousa Mohammed, President of the RDC, stated: “This decision closes a legal gap and ensures fairness for compliant owners and developers. It guarantees that essential services in buildings continue without interruption and that those who delay payment cannot avoid their obligations.”
Impact on UAE Residents and Property Market
This ruling provides added legal clarity for property owners and investors across Dubai and the UAE, particularly in buildings with shared amenities. Consistent payment of service charges ensures that maintenance and building services remain uninterrupted, helping sustain property value and investor confidence.
In 2024, the RDC closed 49,817 execution files related to jointly owned properties and introduced a self-execution service for service fee claims, allowing property managers to recover dues more efficiently.
This legal clarification reinforces Dubai’s reputation as a stable and transparent real estate market, protecting both developers and compliant buyers while enhancing operational efficiency in residential and commercial buildings.
