Dubai has moved to close a long-running legal gap in real estate, clarifying when property buyers must pay service fees for jointly owned buildings.
The Rental Disputes Centre has issued a new judicial principle confirming that unit owners are liable for such charges from project completion, even if formal handover has not yet taken place.
The ruling resolves recurring disputes between developers and buyers over responsibility for the costs of operating and maintaining shared facilities.
Dubai Rental Disputes Centre
The ruling anchors itself in Law No. (6) of 2019 on Jointly Owned Properties, which regulates payments to cover management, operation, and maintenance of common areas.
Under the law, either the developer or the owner must bear charges for unsold units, with funds directed to management companies to ensure uninterrupted services and efficient building upkeep.
While the legislation was generally clear, disputes had emerged in cases where units sold by instalments were completed but not registered under the buyer’s name.
Developers often withheld delivery due to outstanding dues, raising questions over who should pay the service charges — the buyer or the developer.
The Rental Disputes Centre referred the case to the General Authority for Unifying Principles.
After reviewing the relevant legal provisions, the Authority ruled that the buyer whose name appears in the preliminary register of the unit is liable for service charges starting from the date of project completion or from default on payments, even if final ownership has not yet been transferred.
Dubai real estate disputes
Judge Abdulqader Mousa Mohammed, President of the Rental Disputes Centre, said: “The General Authority has addressed this legislative gap by interpreting the law’s underlying intent to secure the stability of jointly owned properties and guarantee the uninterrupted provision of essential services.
“Holding defaulting buyers accountable for service charges aligns with the spirit of the legislation.
“By doing so, we have established a clear judicial precedent that eliminates confusion, strengthens practical approach, and reaffirms our commitment to justice and fair dispute resolution.”
The decision reinforces confidence in Dubai’s real estate regulatory framework, ensuring the continuity of vital building services, protecting compliant owners, and preventing loopholes that could undermine communities.
Legal ruling
It also underlines the Rental Disputes Centre’s role in clarifying legislation through judicial interpretation. It keeps pace with evolving property practices and strengthening Dubai’s status as a premier global investment destination.
In line with this role, the Centre also closed 49,817 execution files related to joint ownership in 2024.
This milestone coincided with the launch of a self-execution service for service fee claims, enabling property management companies to submit claims more efficiently and ensuring continuity of services while improving building management processes.
