Frequently Asked Questions

Q. What is an Owners Association?

 

A. An ‘Owners Association’ is a group of owners that own “units” within a jointly owned property.

 

An Owners Association is formed upon registration of the first unit sale, it is made up of all unit owners it is a legal entity in its own right.

 

It is responsible for ensuring common areas and assets are repaired, replaced, maintained and renewed.

 

It must obtain and maintain any insurance and required licenses. Documents such as records and statements must be maintained, produced and audited.

 

It is responsible for service charge budgeting, collection and accounting.

It is not for profit.

 

It must fairly enforce the Master Community Declaration, Community/Building Rules and any Building Management Statement and has a responsibility to promote harmony and a sense of good will and belonging among owners and occupiers of units.

 

It must ensure that the common areas can be used as designated and others are not disturbed or put at risk in them.

 

It can also sue and be sued.

 

Q. What is the service charge?

 

A. A fee paid in advance for the cost of the maintenance, management, operation and repair of the common areas, facilities and services.

 

It is usually paid quarterly or annually and it includes such things as insurance, utility services e.g. DEWA (Water & Electricity), air conditioning, cleaning, security, preventative maintenance and administration of the Owners Association, including recovery of service fee, management of the bank accounts and payment of creditors.

 

There are two types of service charges, one for the “General” fund which pays for the day to day management and maintenance and one for the “Reserve” fund that is specifically for capital improvements and lifecycle replacements.

 

A. A Jointly Owned Property Declaration is prepared by the developer of a building or project. This document must disclose a great deal of detail about the property to a potential purchaser and unit owner.

 

 

The final regulations that support the Jointly Owned Property Law have not yet been executed but it is expected that much of the following detail will be required in this Declaration:

 

• Whether freehold or leasehold (and what form of lease is to be used)
• The name of the Owners Association
• The numbering of units
• The area of units
• Details of the expected stages of the development
• Details about the delivery and use of utility services
• Details of any easements, rights of access or covenants
• Community/Tower Rules
• Explanation of the subdivision and structure
• Forms of lease.
• Detail of any special Management Arrangements
• Restrictions on use of units
• Architectural and Landscape codes
• Restrictions on use of common areas
• Details of rights of exclusive use of common areas
• Duties and obligations of any sub-developers
• Duties and obligations of owners and occupiers

 

Q. What is a Building Management Statement?

 

A. Building Management Statement only applies to buildings and it must identify both the Component Use areas and Common Elements. A Building Management Statement helps to establish how a building shall be managed and acts to establish and disclose details of the rights and responsibilities of the different owners.

 

It may also specify the following:

 

• The owners of the Common Elements
• Rights of access
• Rights of support and shelter
• Responsibility for maintenance
• Cost sharing arrangements
• Insurance arrangement
• Details of the Management Group
• The maintenance charge arrangements
• Architectural standards
• Environmental management requirements
• Rules for use of Common Elements
• Administrative arrangements
• Matters to protect owner and occupier interests

 

A Building Management Statement must be lodged at Dubai Land Department if there is no Jointly Owned Property Declaration in existence for the building affected. A Building Management Statement may be lodged if there is volumetric subdivision or where a Jointly Owned Property Declaration would be needed for a component.