Question: I own a villa in a community in Dubai. Can the developer raise service charges several years after the handover? If I believe the increase is unfair, is there any way to challenge it?
Answer: It is assumed that you are paying service charges for various common services and utilities, including but not limited to utility services, common areas, and drainage systems. If your villa is part of a major project in Dubai, the provisions of the law regarding jointly owned properties would apply. Specifically, Article 1 of Law No. 6 of 2019, which governs the ownership of Jointly Owned Real Properties in Dubai, outlines the following:
- Building Management Regulation: This document, prepared in accordance with Dubai Land Department (DLD) by-laws, defines the procedures for maintaining common areas and systems, as well as the percentage contributions from owners for related costs.
- Owners Committee: A committee formed from among property owners, as per the law, to manage shared property matters.
- Service Charges: These are annual charges collected from owners to cover the costs of management, maintenance, and operation of shared property.
- Management Company: A company recognized by the Real Estate Regulatory Authority (RERA) that specializes in managing common areas and shared facilities.
- Utility Services: Includes services like water, electricity, air conditioning, sewerage, telecommunications, and waste removal, among others.
- Major Project: A project classified as a major property under criteria approved by the Director General of RERA.
For properties within major projects, the master developer is responsible for management and maintenance under Article 18(a)(1) of the Dubai Jointly Owned Properties Law. The developer may outsource this responsibility to a management company, as per Article 19.
If there is a dispute regarding service charge increases, you can initially discuss the matter with the developer or management company. If no resolution is reached, Article 42 of the law allows for a dispute to be taken to the Rental Dispute Centre (RDC) in Dubai for resolution.
In summary, you have the right to challenge the service charge increase if you find it unjust, first through discussions with the developer or management company, and then by seeking legal resolution through the RDC if necessary.
News Source: Khaleej Times
