Homeowners to set service charges
Master developers will no longer be able to levy exorbitant service charges on freehold premises on the property owners as the new Condominium Law shifts the responsibility to the owners' representatives, a senior government official said.
Article No 22 of the Condominium Law (Law No 27 of 2007: Joint Ownership of Property Law), states, "The owner of each unit shall pay to the Owners' Association his share of the yearly service fees to cover the management, operation, maintenance and repair of common parts.
"This share is defined based on the unit's area out of the total area of the joint property. The developer, whether main of subsidiary, must pay its share of fees for unsold units," the article says.
"No unit owner is allowed to give up his share of the common parts to avoid paying his share of the yearly service fees."
Currently, the master developers and property developers (of individual towers) who are building the major neighbourhoods in Dubai's freehold and leasehold areas designated under the Property Law of 2006, fix and levy these service charges, at a rate between Dh8 to Dh12 per square feet, which is considered high - a fact that had caused friction between the master developers and home owners at various freehold neighbourhoods a few years ago.
At this rate, the annual service charge for a 1,000 square-foot apartment could reach Dh12,000. A developer of a 100-flat tower, thus could pocket a Dh1.2 million annual revenue just as service charge. The recent flooding throws new focus on the management of the facilities at these properties, where several villas were inundated.
In the absence of proper laws, some developers have levied even higher service charges, to the discontent of the buyers.
However, with the new Condominium Law, the situation will change for the better as the property buyers will dictate and fix the service charges of their own premises, instead of the developer, who has lost a say in this matter.
"As per the new Condominium Law, the home owners will be able to fix their own service charges, instead of the developers," Mohammad Sultan Thani, assistant director-general of Dubai Land Department, told Gulf News. "Even if the developer has sold one unit, there should be a owners' association in which the developer will represent unsold units."
Source:
Gulf News |
