OWNERS ASSOCIATIONS
Regulations and interim measures relating to service charges those developers keen to progress their registrations to prepare the necessary documentation and information. In addition to regulating registrations, the regulations introduce international standards governing the management and operation of Owners Associations in Dubai. The owners of apartments or villas in a registered Jointly Owned Property development will become members of an Owners’ Association which will be responsible for administering and maintaining the common areas in their building or villa community and will be governed by a Board elected by the owners. Owners will be empowered to view the financial statements of the Owners Association and to approve their budgets for the expenses that will be incurred in managing and maintaining the common areas on an annual basis. Accordingly, Mr. Eng. Marwan bin Ghalita, CEO of RERA has announced
the following clarifications to the freeze on service charges announced recently: Service charges for existing buildings, (i.e. buildings that have been handed over) will be frozen at the rates that were applicable in 2008 unless the 2009 rates are for a lesser amount or have been approved by RERA. The freeze will
What is an Owners Association? • • •
Owners’ Association is made up of owners in apartments or villas in a registered jointly owned property. The Owners’ Association is responsible for administering and maintaining common areas of their building or villa community. Owners will be able to look at financial statements of the Owners’ Association and check expenses.
last until the first General Assembly of the Owners Association (which will need to be held within three months of registration). Service charges for buildings that
sued, the Dubai Land Department and RERA will be holding information sessions for developers, interested owners and professionals in the real estate sector in Dubai.
DUBAI REAL TIMES
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oon four regulations relating to Jointly Owned Property developments in Dubai will be issued (the “Regulations”). These regulations will create the legal framework enabling developers, and in certain instances, owners to apply for the registration of an Owners Association with RERA. Developers will have six months from the date the regulations are issued to register Owners Associations for their developments, and if they do not move promptly, owners will themselves be able to register the Owners Association at the developer’s expense. RERA has developed an on-line system for the registration of Owners Associations. Developers wishing to use the on-line system will need to undertake a short training programme, after which they will be given a user name and password to access the system. The system will be available for use on March 15 this should allow sufficient time for
are about to be handed over, or are in the process of being handed over, will be subject to the approval of RERA and after approval will apply until the first General Assembly of the Owners Association. Owners in both categories of buildings will be required to pay the relevant service charges until the owners approve, with or without amendment, the service charges at the first General Assembly of the Owners’ Association. Service charges which have already been paid by owners for the 2009 year will be adjusted accordingly after the Owners Association approves the service charges. Developers or managers currently managing Jointly Owned Properties (such as buildings or villa communities) must continue to manage such properties until the first General Assembly of the Owners’ Association at which time they must present a proper budget for consideration by owners. Owners Associations will be required to appoint an Owners’ Association manager (“General Manager”) who will be responsible for the administrative, secretarial and financial affairs of the association. The general manager will need to obtain a license from RERA and to do so will need to show that they are qualified to manage Owners’ Associations, attend the necessary training course and have the appropriate professional indemnity insurance in place. As soon as the Regulations are is-
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