Can Developers Increase Service Charges After Handover?
If you own a villa in a Dubai community, you likely pay service and usage fees covering utilities, common areas, and drainage. If your villa is part of a major project, the regulations for jointly owned properties apply.
Relevant Legal Provisions
Building Management Regulation: This document, registered with the Dubai Land Department (DLD), outlines maintenance procedures for shared areas, equipment, and services, along with the owners’ cost contributions.
Management Company: A sole proprietorship or company recognized by RERA (Real Estate Regulatory Authority) that specializes in managing jointly owned properties or shared facilities.
Utility Services: These include water, electricity, gas, air conditioning, telecom networks, waste disposal, mail services, and landscaping, among other systems that enhance common facilities.
Major Project: A designation for certain jointly owned properties based on criteria set by the Director General.
For major projects, Article 18(a)(1) of the Dubai Jointly Owned Properties Law states that the master developer is responsible for management and maintenance. Under Article 19, the developer may delegate these responsibilities to a management company through a RERA-approved written agreement.
Service Charge Disputes
Article 25 requires property owners to pay service charges. Article 38 allows RERA to replace a management company if necessary.
If you believe the service charge increase is unfair, you should first discuss it with your developer or the management company. If an agreement isn’t reached, Article 42 allows you to file a complaint with the Rental Dispute Centre (RDC) in Dubai for resolution.
