Law No.

(6) of 2019 on Ownership of

Jointly Owned Properties in the Emirate of
Dubai

Contents

Article (1) The Name of the Law 5

Article (2) Definitions 5

Article (3) Scope of Application 8

Article (4) Jointly Owned Properties Register 9

Article (3) Ownership Rules 9

Article (6) Title of the Common Areas 10

Article (7) Components of Common Areas 11

Article (8) Developer Owned Areas 12

Article (9) Components of the Unit 13

Article (10) Parking for Unit 14

Article (11) Ownership of shares in common areas 15

Article (12) Disposal of Units in Jointly Owned Property 15

Article (13) Division of Units Owned by More Than One Person 15

Article (14) Right of First Refusal 15

Article (15) Use of The Right of First Refusal 16

Article (16) Unit Lease 17

Article (17) Disposing of Common Areas and Common Facilities 17

Article (18) Management of Common Areas 18

Article (19) Common Facilities Management 19

Article (20) Building Management Statement 19

Article (21) Master Community Declaration 20

Article (22) Owners’ Committee 20

Article (23) Owners’ Committee meetings 21

Article (24) Functions of the Owners’ Committee 23

Article (25) Services Charge 24

Article (26) Master Community Service Charge 24

Article (27) Approval of Service Charge and Master Community Service Charge 25

Article (28) Non-payment of Service Charge and Master Community Service Charge 25

Article (29) Restricting the Owner to use the Unit 25

Article (30) Depositing of The Service Charge and Disbursement Thereof 26

Article (31) Depositing of Master Community Service Charge and Disbursement Thereof 27

ARTICLE (32) Collection of Service Charge and Master Community Service Charge 28

Article (33) Control and Inspection 29

Article (34) Conclusion of Contracts and Agreements 30

Article (35) Repair and Maintenance Work 31

Article (36) Maintenance Guarantee for Common Areas and Common Facilities 31

Article (37) Non-performance of of Developer or Hotel Management Company 32

Article (38) Non-performance of Management 32

Article (39) Modification to Jointly Owned Properties 33

Article (40) Responsibility of the Developer 34

Article (41) Insurance of Jointly Owned Property 35

Article (42) Conflict Resolution 35

Article (43) Fees 35

Article (44) Administrative Fines and Penalties 36

Article (45) Judicial Enforcement 36

Article (46) Grievances 36

Article (47) Revenue Treatment 37

Article (48) Regularization 37

Article (49) Substitution of the Owners’ Association with The Management 37

Article (50) Issuing Executive Decisions 37

Article (51) Repeals 38

Article (52) Publication and Entry into Force 38

We are ​Mohammed bin Rashid Al Maktoum,​ Ruler of Dubai

Having examined the Civil Transactions Law promulgated by Federal Law No. 5 of 1985 and
its amendments;
Law No. (3) of 2003 on the establishment of an Executive Council for the Emirate of Dubai;
Law No. (7) of 2006 on real estate registration in the Emirate of Dubai;
Law No. (27) of 2007 on ownership of Jointly Owned Properties in the Emirate of Dubai;
Law No. (13) of 2008 on the organization of the initial land registry in the Emirate of Dubai
and its amendments;
Law No. (7) of 2013 on the Department of Lands and Property;
Decree No. (22) of 2009 on special development zones in the Emirate of Dubai;
Decree No. (17) of 2013 on licensing and classifying hotel establishments in the Emirate of
Dubai;
Decree No. (26) of 2013 on the Center for Rent Dispute Resolution in the Emirate of Dubai;
Legislation establishing and regulating the free zones in the Emirate of Dubai;

We promulgate the following law:

 Article (1)
The Name of the Law

This Law shall be called the ​Law (6) of 2019 on Ownership of Jointly Owned Properties in
the Emirate of Dubai​.

Article (2)
Definitions

The following words and expressions, wherever mentioned in this law, shall have the
meanings indicated against each of them, unless the context indicates otherwise:

Emirate:​ The Emirate of Dubai

Government:​ Government of Dubai

Executive Council: ​The Executive Council of the Emirate

Department: ​Land Department

Agency: ​Real Estate Regulatory Agency

The Center: ​Rental Disputes Center in the Emirate

Competent Authority: ​The competent authority to issue building permits and approve the
district plans in the Emirate

The Director General: ​The Director General

Executive Director: ​Executive Director of the Foundation

Land Registry: ​The registry organized under the aforementioned Law No. (7) of 2006

Master Developer: ​Any person licensed to engage in real estate development and the
disposal of Real Property Units to third parties and categorized as a Master Developer
according to the applicable regulations in the Emirate.
Sub-Developer:​ Any Any person licensed to engage in the real estate development
business and the sale of Units, and the disposal of Real Property Units to third parties and
granted by the Master Developer the right to develop part of a real estate development
project in accordance with the provisions of the Master Community and categorized as a
Sub-developer according to the applicable regulations in the Emirate.

Developer: ​includes the Master Developer and Sub-Developer.

Master Community: ​Project for the development of vacant land, the construction of
infrastructure and common services facilities and its division into several plots for sale, and
the construction of multi-storey buildings or complexes for residential, commercial,
industrial or mixed purposes, which the Agency classifies as a Master Community according
to the standards approved by the Director General in this regard.

Jointly Owned Property: ​includes the building, its parts and accessories for common use,
including the land on which it is situated, as well as land that is divided into units or land
for independent ownership.

Large Scale Projects: ​Are determined in accordance with the criteria adopted by the
Director General in this regard.

Hotel Project: ​Any property where Units are attached to Jointly Owned Property, which is
licensed by the competent entity for use as a hotel establishment, including but not limited
to hotels, hotel villas, hotel apartments, and hotel rooms.

Unit: ​Any apartment, shop, office, warehouse, floor, land or part of land or house
connected to another house or detached house which is part of Jointly Owned Property,
whether for residential, commercial, industrial or other uses.

Project Plans: ​A set of plans and drawings prepared by the Master Developer of the Master
Community, approved by the Department and the competent authority.

Site Plan: ​The identification map prepared by the Developer for the boundaries of the
building within the Jointly Owned Properties, approved by the Department and the
Competent Authority.
The Plans:​ include the Project Plan and the Site Plan.

Common Facilities:​ Zones and areas defined in the Project Plans, owned by the developer
in restricted ownership, intended for common use and service of the Master Community,
including parks, green spaces, fountains, streets, lakes, swimming pools, playgrounds,
public squares, public parking, footpaths, beaches and others .

Common Areas:​ The parts of Jointly Owned Property designated for the communal use of
the Owners and Occupants of the Units indicated in the Site Plan.

Exclusive Use Areas:​ Areas, connections, equipment, fixtures or facilities within Jointly
Owned Property designated for the exclusive use of some Owners (and Occupiers) but not
others.

Developer Owned Areas: ​The sites and areas specified in the project plan or site plan other
than the Common Facilities or Common Areas, owned by the developer, which are
reserved for private, commercial or investment use.

Owner: ​Any person who is registered in the Land Registry as the owner of the unit,
including those who have the right to use it or the right to lease it under the long term
lease covered by the aforesaid Law No. 7 of 2006, as well as the developer with respect to
unsold units.

Master Community Declaration:​ The terms and conditions governing the development and
operation of the Master Community and joint real estate and common facilities, including
the planning and construction standards of the complex.

Building Management Statement: ​The document prepared in accordance with the

regulations issued by the Department and recorded in the register of Jointly Owned
Properties, which shows the procedures for maintenance of the common areas, and the
percentage share of owners in the related costs, including equipment and services located
in any part of another building.

Owners Committee:​ a committee established by the owners in accordance with the

provisions of this law.
Constitution:​ The rules and provisions governing the Owners’ Committee, which shall be
drawn up and adopted in accordance with the provisions of this Law.

Services Charge​: The annual financial allowance collected from the owner to cover the
expenses of managing, operating, maintaining and repairing the Common Areas.

Master Community Service Charge:​ The annual financial allowance collected from the
owner or sub-developer for the management, operation, maintenance and repair of
common facilities.

Occupier: ​Any person who benefits from the unit as prepared, including the Owner, the
tenant and any other person authorized by the Owner.

Management Company:​ is the individual establishment or the company approved by the

establishment specialized in the management of common facilities, Jointly Owned
Properties or joint parts as the case may be.

Hotel Management Company​ The individual institution or the company approved by the
establishment specialized in the management of hotel projects and the parts thereof in
accordance with the provisions of this law.

Management:​ The entity that manages the Common facilities, the Common Areas, or the
Jointly Owned Properties in accordance with the provisions of this law.

Utilities Services:​ include water or its supply, gas or its supply, electricity, air conditioning,
telephone, computer, television and telecommunication cables, drainage, rainwater
drainage, removal or disposal of waste or trash, delivery of mail, parcels or goods,
gardening and agriculture, and any A system or other service intended to improve
Common Facilities or Common Areas.

Article (3)
Scope of Application

The provisions of this law shall apply to all Master Communities and Jointly Owned
Properties in the Emirate, including private development zones and free zones.
 Article (4)
Jointly Owned Properties Register

(a) The Department shall prepare a special register of Jointly Owned Properties, including
the following:

1. Land owned by the Developers on which the Joint Owned Properties will be
developed.
2. Units for independent ownership in the Jointly Owned Properties sold by the
Developers and the names of the owners of these units.
3. Members of the Owners’ Committee.
4. Building Management Statement.
5. Plans.
6. Management.
7. Management contracts for the Jointly Owned Properties or the Common Areas.
8. The size (area) of C​ommon Areas and Exclusive Use Common Areas and their
proportion in relation to the area of U​nits in the Jointly Owned Property.
9. Areas owned by the Developer in the Jointly Owned Property.

(b) The Department shall, upon the request of the concerned parties, issue certificates,
deeds, and any other documents pertaining to the Unit or Jointly Owned Property, based
on the data of the Register referred to in Paragraph (A) of this Article.

Article (3)
Ownership Rules

The rules and conditions stipulated in the aforesaid Law No. (7) of 2006 shall apply to the
ownership of the Jointly Owned Property.
 Article (6)
Title of the Common Areas

(a) The Plans, Master Community Declaration, Constitution, Building Management

Statement shall form part of the title deed of the Jointly Owned Property. The
Department will retain the original copy thereof.

(b) The Occupier will have an obligation towards the Developer, Owners and other Unit
Occupiers, Owners’ Committee, Master Community Declaration Constitution, and
Building Management Statement to the extent that their provisions apply to the
Occupier.

(c) The Developer shall, upon completion of the Jointly Owned Property and obtaining
the completion certificate from the competent authority, within (60) sixty days from
the date of issuance of the completion certificate, submit the documents referred to
in paragraph (A) of this article to the Department. The Department may extend this
period by (30) thirty days, provided that the Developer gives valid reasons to the
satisfaction of the Department.

(d) The Developer's obligation under paragraph (c) of this Article shall not include
submission of Building Management Statement, which shall be prepared by the
Agency.

(e) In case the Developer fails to submit the documents referred to in paragraph (a) of
this article within the time limit specified in paragraph (c), the Department may, at
the cost of the Developer, request any party it deems appropriate to provide and
lodge the required documents with the Departments.

(f) The Department shall, in accordance with the provisions of this Law, issue and
update maps of the Common Areas, Exclusive Use Common Areas, and the Common
Facilities.
 Article (7)
Components of Common Areas

(a) The Common Areas of the building shall include, but are not limited to, the
following components:

(1) The structural parts of the Jointly Owned Property, including the main pillars,
foundations, columns, structural walls, ceilings, ceiling joints, staircases,
corridors, facades and roofs.

(2) Thresholds, corridors, parking corridors, entrances, emergency exits and

windows located on the exterior walls, unless the site plan includes
otherwise.

(3) guard rooms, recreational facilities and equipment, swimming pools,

gardens, storage facilities, offices, and car parks designated for the use of the
Management or Owners’ Committee or visitors, unless the site plan includes
otherwise.

(4) Equipment and systems of main utilities, including electricity generators,

lighting systems, gas systems and equipment, cold and hot water systems,
heating and cooling systems, air conditioning systems and waste collection
and treatment facilities;

(5) Elevators, tanks, pipes, generators, chimneys, ventilation ducts, air

compressors and mechanical ventilation systems.

(6) Main water pipes, sewage pipes, gas pipelines and chimneys, towers, wires,
electricity and communication streams serving more than one unit.

(7) Equipment used for measuring the provision or supply of Utility Services;.

(8) Any other parts not within the limits of any Unit, which are necessary or
required for the existence, maintenance, sustainability, safety and operation
of the Common Areas.
 (9) Any other included in the site plan.

(b) Common Areas in case of land shall consist, without limitation, of the following
components:
(1) Roads, roundabouts, intersections, pathways, pavement edges, median
strips, viaducts, drainage and related systems.
(2) Lakes, ponds, canals, parks, fountains, water features and other waterways,
including all related equipment, unless otherwise indicated on the Site Plan.
(3) Landscaping, public squares, play areas, rest areas, and car parks designated
for Management, Owners’ Committee or visitors, unless otherwise indicated
on the Site Plan.
(4) Wires, cables, pipes, drains, ducts, machines, and equipment used to supply
Units or Common Areas with different services.
(5) Equipment used for measuring the provision or supply of Utility Services; and
(6) Any other common areas included in the Site Plan.

Article (8)
Developer Owned Areas

When seeking approval of the Project Plan or Site Plan for the first time, the Developer
may, after obtaining approval of the Department and the Competent Authority, and
provided that such approval does not conflict with the Master Community Declaration and
the rights of owners, specify Developer Owned Areas in the Project Plan or Site Plan, which
are intended for private, commercial or investment use.
 Article (9)
Components of the Unit

(a) Unless otherwise indicated on the site plan, each Unit in a building or part of a
building shall comprise the following, without limitation:

(1) Flooring, flooring materials and parts up to the base of the joists, and
structures supporting the floor of the Unit.

(2) Plaster ceilings, all other types of ceilings, additions that form part of the
interior of the unit and the spaces between those ceilings, as well as ceilings
above the supporting walls and structures within the Unit, the walls that
separate the Unit from the Jointly Owned Property, any adjacent Units or
Common Areas.

(3) Internal area, non-load bearing walls located inside and around the Unit.

(4) Windows, glass and fixtures that form part of the interior windows, lighting
systems, doors and their frames and all equipment and installations serving
the Unit.

(5) Bathrooms and complementary parts of the unit, such as balconies and other
parts attached to the Unit.

(6) Utilities attached or allocated to the Unit, such as the garden, parking lots,
warehouses and guard rooms even if these are not physically connected to
the Unit, provided that the area of these utilities is attached to the Unit but
not included in the net area.

(7) Internal connections serving the Unit.

(8) Fixtures and fittings installed by the Occupier.

(9) Additions, modifications and improvements made to the Unit from time to
time.
 (10) Any other component included in the Site Plan.

(b) For the purposes of applying the provisions of paragraph (a) of this Article, the Unit
shall not include Utility Services located within the Unit that serve Common Areas or
any other Unit.

(c) Unless otherwise indicated on the Site Plan, each Unit in a Jointly Owned Property
comprising land as opposed to a building, shall include, without limitation,
everything within the boundaries of the unit, except for Utility Services serving
Common Creas or any other Unit.

(d) Each Unit intended for independent ownership is entitled to appropriate services
and right of way from other Units and Common Areas.

(e) Dividing walls between two adjacent units shall be shared by both owners, if they
are within the Common Areas.

Article (10)
Parking for Unit

(a) Parking lots, which are required by regulations and approved by the Competent
Authority to be provided or allocated to the Unit, shall be considered an integral
part of the unit and may not be separated from or sold separately.

(b) The developer shall register the Unit and the designated parking lots in the name of
the Owner in accordance with the instructions issued by the Director General in this
regard. In all cases, the unit may not be sold or disposed of separately from the
designated parking lots (specified in paragraph a).

(c) The owner may purchase additional parking if such parking is in excess of the
parking lots allocated to all units in the Jointly Owned Property in accordance with
the regulations and instructions referred to in paragraphs (a) and (b) of this Article.
The Director General may specify the cases in which the Owner may purchase
additional parking.
 Article (11)
Ownership of shares in common areas

The Owners, and Developer with respect to unsold units, own an undivided share of the
common areas, which is determined on the basis of the Unit Area of ​the total area of ​the
Common Areas.

Article (12)
Disposal of Units in Jointly Owned Property

The Owner may sell or dispose of his Unit any form of legal disposal, and may mortgage it
to any of the banks or financial institutions licensed to operate in the Emirate.

Article (13)
Division of Units Owned by More Than One Person

No Unit owned by two or more persons may be divided between themselves into separate
units unless the Master Community Declaration allows so, and after obtaining the approval
of the Department and the necessary licenses from the Competent Authority.

Article (14)
Right of First Refusal

(a) The (partner) Owner shall have the first right of refusal, in proportion of their
existing shares, if another (partner) owners wishes to sell or dispose of his share in
the same Unit to another person other than the partners.

(b) The right of first refusal established under paragraph (a) of this Article shall not arise
if the share of the (partner) Owner is sold or disposed of between the ascendants
and descendants or between the spouses or relatives up to the fourth degree or
in-laws to the second degree.
 Article (15)
Use of The Right of First Refusal

(a) The right of first refusal shall be indivisible. It shall not be used or abandoned except
in full, and in the case of multiple (partner) Owners, each one shall use his right to
the proportion of shares owned in the Unit, and if one or some of them forfeit their
right, accordingly the right will be transferred to to the rest of the (partner) Owners
in proportion to the existing quotas of each of them.

(b) The right of first refusal priority shall be forfeited in case the (partner) Owner
wishing to sell or dispose of his share shall give written notice to the other
(partner)owners through the notary public, stating the name and address of the
person wishing to purchase and the conditions of sale, and the (partner) Owners did
not agree to the stated conditions within (30) thirty days from the date of the
notice.

(c) If any of the (partner) Owners agrees to buy or dispose of the share of the (partner)
Owner wishing to sell, he shall notify the seller of his desire to purchase through the
notary public within the period of notice referred to in paragraph (b) of this article,
and complete the sale procedures with the Department within a period not
exceeding (10) ten working days from the date of expiry of the notice period.

(d) If it is proved that the sale made in accordance with the provisions of this article has
been done on terms more favourable to the buyer than the conditions set forth in
the notice sent to the (partner) Owners who had the right of first refusal, the
(partner) Owners may seek compensation before the Center from the seller for the
damage caused to them.
 Article (16)
Unit Lease

(a) The Owner may lease the Unit, provided that he and the tenant remain committed
to adhere to the Constitution, Master Community Declaration and the Building
Management Statement, towards the Owners and Occupiers of other Units, the
Owners’ Committee and the Management.

(b) The Owner shall pay the Service Charge and Master Community Service Charge,
unless the Unit lease stipulates otherwise. In all cases, the Owner shall not remain
liable to pay Service Charge and Master Community Service Charge if the tenant
fails to pay them as prescribed by this Law.

Article (17)
Disposing of Common Areas and Common Facilities

(a) In no case shall Common Areas be converted to private property, divided or

disposed of in whole or in part, independently of the Units to which they relate,
except after obtaining the prior approval of the Department and the Competent
Authority, even if the building is under construction. The Director General shall set,
by decision to be issued by him, the rules related to utilization of financial revenue
which is received from such transfer.

(b) It is prohibited to dispose of the common facilities in any way, exploit, change,
re-plan or cancel them in a way that limits the use of them by the owners, except
after obtaining the prior approval of the Department and the competent authority.
 Article (18)
Management of Common Areas

(a) Jointly Owned Property for the purpose of managing the Common Areas is divided
into three categories:

(1) The first category: Large Scale Projects, the projects that fall under this
category are determined according to the criteria determined by a decision
of the Director General in this regard. The Developer is responsible for the
management, operation, maintenance and repair of Common Areas and
Utilities Services. The functions of the Owners’ Committee shall be
determined in accordance with the Constitution and the directions issued by
the Director General in this regard.

(2) The second category: Hotel Projects, the Developer should entrust the
management of the Common Areas to the Hotel Management Company in
accordance with the directions issued by the Director General in this regard.
Hotel Projects shall have an Owners’ Committee whose members shall be
chosen by the Agency if the Hotel Management Company so desires.
However the Owners’ Committee does not have the right to interfere with
the management of the Hotel Project or its components.

(3) The third category: Real estate projects other than Large Scale Projects and
Hotel Projects referred to in the first and second categories of this paragraph.
For this purpose, real estate projects, which fall under this category, shall
constitute an Owners’ Committee whose members shall be appointed by the
Agency as prescribed under this Law.

(b) If the second and third categories referred to in paragraph (a) of this article happen
to be in the same Jointly Owned Property, the Common Areas of such Jointly Owned
Property shall be administered by the Hotel Management Company, as prescribed
under this law.
 (c) The Developer may entrust all or some of the duties and responsibilities prescribed
to him under clause (1) of paragraph (a) of this Article, to the management company
in return for fees and conditions agreed upon by both parties, provided that this
agreement is approved by the Agency.

(d) In the absence of Developer the Agency may appoint a Management Company for
the first and second categories of the projects described in paragraph (a) of this
article.

Article (19)
Common Facilities Management

The Master Developer shall manage and maintain the facilities involved in the Master
Community, provided that this is entrusted to the management company under a written
agreement previously approved by the Corporation.

Article (20)
Building Management Statement

(a) The Developer shall establish the Building Management Statement in Large Scale
Projects and Hotel Projects that he manages. Building Management Statement must
be approved by the Agency prior to commencement of any legal action against any
unit in the Jointly Owned Property of Large Scale Projects, and Hotel Projects in
accordance with the provisions of this Law and directions issued pursuant to it, and
the Master Community Declaration.
(b) For all other Jointly Owned Property projects other than those referred to in
paragraph (a) of this article, in case there is no Building Management Statement,
the Agency shall establish the Building Management Statement and may seek
assistance of companies specializing in this field.
(c) If the Jointly Owned Property is to be developed in stages, the Building
Management Statement for the part which is completed should be established.
 Article (21)
Master Community Declaration

The Master Developer shall establish the Master Community Declaration in the Master
Community before concluding any legal action on the land, buildings or units in the Master
Community; provided that the Master Community Declaration shall be approved by the
Agency. Any modifications to the Master Community Declaration that affect the rights of
the Owners, may only be made after approval of the Agency.

Article (22)
Owners’ Committee

(a) The Owners Committee shall be constituted for real estate projects in the first and
third categories stipulated in paragraph (a) of article (18) of this Law, provided that
the number of members of the Owners’ Committee does not exceed nine (9),
including the Chair and Deputy Chair, and shall be selected by the Agency.
(b) The owners committee shall be formed when at least (10%) of the total number of
units in the Jointly Owned Property are registered in the name of the Owners of
these Units in the Land Registry.
(c) A member of the Owners Committee shall:
(1) Have full legal capacity.
(2) must be a resident of the Jointly Owned Property.
(3) Be of good conduct.
(4) shall be punctual in paying Service Charge and Master Community Service
Charge.
(5) Regularly attend and actively participate in the meetings of the Owners’
Committee.
(d) The Developer may not be a member of the Owners Committee unless they own
unsold units in the Jointly Owned Property.
(e) The Owners Committee shall select from among its members a Chair to represent it
before the Management and the Agency.
(f) The terms and conditions stipulated in this Law and the directions issued pursuant
to it, and the Constitution shall apply to the Owners Committee.
(g) The Agency shall, without prejudice to the provisions of this Law, establish the
Constitution.
(h) The membership of the Owner in the Owners’ Committee shall be terminated in
case he/she loses any of the membership conditions stipulated in paragraph (c) of
this article.
(i) The Agency may reconstitute the Owners’ Committee at any time, provided the
membership conditions are fulfilled.

Article (23)
Owners’ Committee meetings

(a) The Owners’ Committee shall hold its meetings periodically (3) three months, (4)
four meetings per year. The first meeting shall be held within (30) thirty days from
the date of formation. Quorum for the meeting shall be presence of majority of
members, including the Chair and Deputy Chair.

(b) The Owners’ Committee may hold an emergency meeting if necessary, provided
that the Agency shall be notified in advance of the date and the reasons for such
meeting.

(c) Each member of the Owners’ Committee shall have only one vote when voting on
the decisions and recommendations of the Owners Committee, whether he owns
one or more units of the Common Areas.

(d) The Management shall allocate a venue for the meetings of the owners committee,
as well as appoint a rapporteur to prepare the reports and minutes of the meetings.
 Article (24)
Functions of the Owners’ Committee

The Owners Committee shall, but not be limited to:

1. Verify that the Management manages, operates, maintains and repairs the common
areas in accordance with the provisions of this law and the decisions issued
pursuant thereto and the building management system.

2. Review the annual budgets prepared for the maintenance of the Common Areas
and make the necessary recommendations thereon.

3. Discuss the obstacles and difficulties related to the management, operation,

maintenance and repair of the common areas and submit the necessary
recommendations thereon to the Management or Agency, as the case may be.

4. Receive complaints and suggestions submitted by Owners and Occupiers regarding

the management, operation, maintenance and repair of the common areas and
notify the Management thereof, the Owners’ Committee shall submit such
complaints and suggestions to the Agency if the Management does not address
them within (14) fourteen days from the date of notification thereof.

5. Request the Agency to replace the Management for real estate projects that fall
under the third category stipulated in paragraph (a) of Article (18) of this Law, and
to advise the Agency on the selection and appointment of the new Management.

6. Notify the Management or Agency of any defects in the structural parts of the
Jointly Owned Property or any damage or defects in the Common Areas requiring
emergency treatment.

7. Coordinate with the Agency, the Management or the Competent Authority in all
aspects related to safety, environment, security and other aspects related to the
Jointly Owned Property.
 8. Submitting any proposals to the Management regarding the mechanism of utilizing
the Common Areas or modifying the Building Management Statement, provided
that the modification of the Building Management Statement shall be approved by
the Agency.

Article (25)
Services Charge

(a) The Owner shall pay the share of the Service Charge to the Management to cover
the expenses of the management, operation, maintenance and repair of the
Common Areas. Services Charge for unsold Units, as well as for Units sold in which
the Developer is obliged to pay the Service Charge for the buyer in the contract of
sale or attachment in accordance with the provisions agreed in the contract.

(b) For the purposes of applying the provisions of paragraph (a) of this Article, the area
of ​the unit registered in the Land Registry shall be relied upon when calculating the
Owner's share of the Service Charge.

Article (26)
Master Community Service Charge

The Master Developer may collect the Master Community Service Charge from the Owner
or Sub-Developer for the management, operation, maintenance and repair of Common
Facilities within the Master Community whether for completed, under construction or
land. The Owner or Sub-Developer share of the allowance shall be determined according
to the directions issued by the Director General, and in accordance with Master
Community Declaration

Article (27)
Approval of Service Charge and Master Community Service Charge

(a) It is forbidden for the Management to impose or collect any amount whatsoever
from the owner for the management, operation, maintenance and repair of
 common areas or common facilities or for any other reason except after obtaining
the prior approval of the Agency, and in accordance with the directions issued by
the Directors General.

(b) For the purposes of applying the provisions of paragraph (a) of this Article, the
Agency shall not approve or ratify the budget allocated for the Service Charge or the
Master Community Service Charge, except after it has been approved by one of the
accounting firms accredited by the Agency for this purpose.

(c) The Agency may, in cases of necessity, adopt a provisional budget for the Service
Charge until the budget referred to in paragraph (b) of this article is approved.

Article (28)
Non-payment of Service Charge and Master Community Service Charge

The Owner or Sub-Developer shall not refrain from paying the Service Charge and Master
Community Service Charge approved by the Agency, neither shall the Owner forfeit his
share in the Common Areas to avoid paying the due fees.

Article (29)
Restricting the Owner to use the Unit

It is prohibited for the Developer or the Management to take any action against the Owner
that prevents him from receiving or benefiting from the Unit or the Common Areas or
Common Facilities, with the intention of obliging him to pay the Service Charge or Master
Community Service Charge in contravention of the procedures stipulated in this law and
the decisions issued pursuant thereto.
 Article (30)
Depositing of The Service Charge and Disbursement Thereof

(a) The Management should open a special account for the services allowance for each
Jointly Owned Property with one of the banks licensed to work in the Emirate and
approved by the Agency.

(b) The Management shall deposit the Service Charge in the account referred to in
paragraph (a) of this article within seven (7) working days from the date of payment
of the Service Charge, in accordance with the rules determined by a decision of the
Director General in this regard.

(c) The amounts deposited in the special account may not be withheld for the benefit
of the creditors of the Management for any reason.

(d) The Developer shall, pending the appointment of the Management from the
Agency, manage the Jointly Owned Property and retain the Service Charge paid by
the Owners in the special account as prescribed by this Law.

(e) The funds deposited in the special account shall not be disposed of except for the
following purposes:

(1) cleaning services for Common Areas.

(2) Security and safety services in the Jointly Owned Property.

(3) Operation, maintenance, repair and improvement of Common Areas,

installations, equipment and installations and maintaining them in good
condition.

(4) Insurance premiums for the Jointly Owned Property.

(5) Pay any fees for the audit of the accounts and budgets of the Service Charge
accounts.
 (6) Payment of the fees of the Management, the amount and payment terms of
which shall be determined by the Agency.

(7) Cover the administrative expenses of the Developer for Large Scale Projects
as approved by the Agency.

(8) Reserve fund allocated to cover contingencies, or to replace equipment and

devices in the common areas, provided that it is deposited in a separate
reserve fund account, and may not be disbursed for any other purpose
without obtaining prior approval of the Agency, except for emergencies that
can not afford delay.

(9) Paying any fees or expenses for undertaking the inspection and supervision
of the management, operation, maintenance and repair of joint real estate.

(10) Cover any other expenses stipulated in the Constitution and approved by the
Agency, which are necessary for the management, operation, maintenance
and repair of common areas.

(f) In the event that the reserve fund referred to in paragraph (8) of paragraph (e) of
this Article is insufficient to cover the expenses of emergency cases, the
Management may ask the owners to cover such expenses, after obtaining the prior
approval of the Agency.

Article (31)
Depositing of Master Community Service Charge and Disbursement Thereof

(a) The Master Developer shall open a special account for each Master Community at
one of the banks licensed to operate in the Emirate and approved by the Agency.
(b) The Management shall collect the Master Community Service Charge and deposit it
in the special account referred to in paragraph (a) of this article within (7) seven
working days from the date of receipt, in accordance with the controls established
through directions issued by the Director General.
(c) If the Developer uses the Common Facilities for commercial purposes with financial
return after obtaining the approval of the Department, they shall deposit a
percentage of the net profits from such usage into the special account within (10)
ten days from the date of collecting the proceeds. The percentage of net profits
shall be determined by directions issued in this regard by the Director General.
(d) The use of the funds deposited in the special account shall be exclusively for the
purposes set forth in paragraph (e) of Article (30) of this Law, in respect of the
Common Facilities in the Master Community.
(e) In addition to the purposes referred to in paragraph (e) of Article (30) of this Law,
the Master Developer may, after obtaining the prior approval of the Agency, use
part of the funds deposited in the special account for the purposes of repairing and
maintaining the areas owned by the Developer in the Master Community when
available, without charge, for public use.
(f) The amounts deposited in the special account shall not be seized for the benefit of
the creditors of the Master Developer for any reason whatsoever.

ARTICLE (32)
Collection of Service Charge and Master Community Service Charge

(a) The Management has a lien on each Unit in respect of unpaid Service Charges. The
Unit may not be disposed of until after the payment of this allowance to the
Management.
(b) If the Owner fails to pay their share of the Service Charge or any part thereof, the
Management shall demand them to pay this charge within thirty (30) days from the
date of notifying them thereof by a written notice approved by the Agency. If this
time limit lapses, the financial claim issued by the Management to the owner shall
be enforceable before the execution judge in the Centre, in accordance with the
rules and procedures in force in this regard.
(c) The competent execution judge may, when necessary, sell the Unit whose Owner
has not paid his share of the Service Charge, through public auction to recover the
due Service Charge.
(d) The Owner who fails to pay his share of the Service Charge shall pay the legal fees,
expenses and attorneys' fees determined by the competent execution judge.
(e) The Agency shall determine the means by which the notification referred to in
paragraph (b) of this article is served.
(f) The provisions stipulated in the article shall apply to the payment of the Master
Community Service Charge due to the Master Developer.

Article (33)
Control and Inspection

(a) The Agency shall supervise and inspect the operation, management, maintenance
and repair of Jointly Owned Property, Common Areas and Common Facilities. For
this purpose the Agency may:

(1) Inspect the Jointly Owned Properties, the Common Areas and Common
Facilities, and verify their fitness for the purposes for which they were
prepared, without prejudice to the competences of the Competent
Authority;

(2) Register violations and give warnings to the Developer or the Management,
as the case may be, in case of any failure by them to preserve the Jointly
Owned Properties, the Common Areas or the Common Facilities, and give
them the necessary periods of time to correct these violations;

(3) Audit the revenues and expenses of the Service Charge account and Master
Community Service Charge account, and for this purpose, it may request to
be provided with any information, data or statements, and use a legal auditor
accredited by it in this regard;

(4) Consider complaints against the Developer, Management, and the Owners’
Committee regarding the management, operation, maintenance and repair
of the Jointly Owned Property, the Common Areas and the common facilities,
and take appropriate action in relation thereto; and
 (5) Check the contracts and agreements concluded by the Management with
maintenance, guarding, cleaning, insurance and other establishments and
companies; and

(6) Any other tasks or powers assigned by the Director General.

(b) The Agency may appoint any natural or legal person to exercise the functions and
powers stipulated in paragraph (a) of this Article, in accordance with the conditions
and controls adopted by the Director General in this regard.

Article (34)
Conclusion of Contracts and Agreements

(a) The Management shall conclude contracts and agreements with maintenance,
guarding, cleaning, insurance and other establishments and companies to the
extent necessary for performing its duties and obligations as stipulated in this Law.

(b) The Management shall provide the Agency with a periodic report every six (6)
months on the management of the Jointly Owned Property, the Common Areas, the
Common Facilities and the maintenance works that have been performed to them.
The Agency may, when necessary, request the Management to provide it with any
information or statement of account for the revenues and expenses related to the
service charge or utilization charge

Article (35)
Repair and Maintenance Work

(a) If the Agency finds that the Common Areas or common facilities have not been
maintained or kept in good, clean and serviceable condition, it shall be entitled to
request the Agency, by a written notice, to take the necessary actions or carry out
the repair and maintenance work it deems appropriate in this regard.
(b) The Agency shall determine the repair and maintenance work required in the notice
referred to in paragraph (a) of this Article, and the time of commencement and
completion thereof.

(c) In case the Management fails to carry out repair and maintenance works in
accordance with the provisions of paragraph (a) of this Article, the Agency may
assign any other party to carry out such works or any of them, and deduct the costs
and expenses arising therefrom from the service charge account or the utilization
charge account referred to in Articles (30) and (31) of this Law.

Article (36)
Maintenance Guarantee for Common Areas and Common Facilities

(a) The Management shall provide a bank guarantee in favor of the Department, with
such value as it determines, for all the Jointly Owned Properties that it manages, to
secure repair of damage to the Common Areas or Common Facilities as a result of
negligence or default on the part of the Management.

(b) If the Jointly Owned Properties, its Common Areas or Common Facilities have
suffered damage which has arisen from an act of the Management or because of its
negligence or inaction, the Agency may, by written notice, request the Management
to repair such damage within the period specified by it.

(c) In case the Management fails to repair the damage within the period specified in
the notice given to it in accordance with the provisions of paragraph (b) of this
Article, the Agency may assign any other party to implement all or some of the
requirements contained therein, and deduct the costs and expenses arising
therefrom from the bank guarantee referred to in paragraph (a) of this article.
 Article (37)
Non-performance of of Developer or Hotel Management Company

(a) In case the Developer or the Hotel Management Company is found to be

incompetent or unable to manage the Jointly Owned Property or the Common
Areas in the first and second categories stipulated in paragraph (a) of Article (18) of
this Law in a manner that ensures their sustainability and serviceability, the
Executive Director may appoint a specialized management company to manage and
operate this Jointly Owned Property or its Common Areas.

(b) The provisions of paragraph (a) of this Article shall apply, if the Master Developer is
found to be incompetent or unable to manage the Common Facilities in the Master
Community in a manner that ensures their sustainability and serviceability.

Article (38)
Non-performance of Management

(a) If the Agency sees that the management company is incompetent, inefficient or
unable to manage and maintain the Common Areas of the third category of real
estate projects provided for in paragraph (a) of Article (18) of this Law, the Agency
shall appoint an alternative management company to manage the Jointly Owned
Property, provided that the Agency shall follow the following procedures:

(1) Informing the owners’ committee about the violations committed by the
management company and requesting its opinion thereon;

(2) Issue a written warning to the management company indicating the errors
and negative practices committed by it in the management, operation,
maintenance and repair of the Common Areas, and the management
company may respond to this written warning within fourteen (14) days from
the date of being notified thereof;
 (3) Appointing a legal auditing office to audit the service charge account, verify
the management company’s compliance with the service charge budget
approved by the Agency; and

(4) Giving the management company a time limit to hand over the management
of the Jointly Owned Property to the alternative management company
within a period not exceeding thirty (30) days from the date of the issuance
of the Agency's decision to appoint the alternative management company.

(b) If the replaced management company’s actions result in damage to any part of the
Jointly Owned Property or the Common Areas, the value of repairing such damage
shall be charged to the management company, provided that such value is deducted
from the bank guarantee of this company, referred to in paragraph (a) of Article (36)
of this Law.

Article (39)
Modification to Jointly Owned Properties

(a) The occupant may not make any substantial modifications or changes to the
structure or the external appearance of the unit or any part of the Jointly Owned
Property except after obtaining the approval of the master developer, the
Department and the competent authority, without prejudice to the building
legislation in force in the Emirate.

(b) An occupant who violates the provisions of paragraph (a) of this Article shall be
responsible for repairing the damage arising from the change or modification at
his/her own expense and in the manner prescribed by the master developer or the
Agency.

(c) If the occupant fails to repair the damage in accordance with the provisions of
paragraph (b) of this Article, the Agency or the master developer may entrust any
party to repair such damage and charge the expenses and costs of the repair to the
occupant.
(d) Subject to the provisions of the building management system, the occupant and
his/her guests shall use the Common Areas purpose for which they are intended
and in a manner that does not prejudice the rights of others to use the Common
Areas or disturb them or endanger their safety or the safety of the Jointly Owned
Property.

Article (40)
Responsibility of the Developer

(a) Subject to the provisions of the contracting works agreement stipulated in the
abovementioned Federal Law No. (5) of 1985, the responsibility of the developer to
repair or correct any defects in the structural parts of the Jointly Owned Property
shall continue for a period of ten (10) years, starting from the date of obtaining the
certificate of completion for the real estate project developed by them.

(b) The responsibility of the developer to repair or replace defective fixtures in the
Jointly Owned Property shall continue for one year from the date of handing over
the unit to the owner. These fixtures include mechanical and electrical works,
sanitary fittings, sewerage and suchlike. If the owner refuses to receive his/her unit
for any reason, that period shall be calculated from the date of obtaining the
certificate of completion for the real estate project developed by the developer.

(c) Subject to the provisions of paragraphs (a) and (b) of this Article, nothing in this Law
shall preclude or affect any rights or warranties guaranteed to the owner under any
other legislation towards the developer.

(d) Any agreement made after the entry into force of this Law, which include any
conflict with the provisions of this Article, shall be null and void.
 Article (41)
Insurance of Jointly Owned Property

(a) The Management shall insure the Jointly Owned Property to ensure its maintenance
or reconstruction in case it is burned, destroyed or destroyed for any reason,
provided that the Management is the beneficiary of this insurance for the purposes
referred to.

(b) The Management shall insure the Jointly Owned Property against liability for
damages and bodily injuries sustained by the occupant or others.

(c) The premiums payable by the owners shall be calculated in accordance with the
insurance contract concluded with the insurance company and within the cost of
the service charge.

Article (42)
Conflict Resolution

In addition to the competences entrusted to it under the legislation in force, the Center
shall have exclusive jurisdiction to hear and settle all disputes and differences relating to
the 25 rights and obligations stipulated in this Law and the decisions issued hereunder, in
accordance with the rules and procedures applicable by the Center in this regard.

Article (43)
Fees

The Department shall collect fees for issuance of the approvals and provision of the
services provided for under this Law and the decisions issued hereunder. The fees shall be
determined by a decision from the Chairman of the Executive Council.
 Article (44)
Administrative Fines and Penalties

(a) Without prejudice to any severer penalty stipulated under any other legislation, any
person who commits any of the acts constituting a violation of the provisions of this
Law and the decisions issued hereunder shall be punished by a fine not exceeding
one million (1,000,000) Dirhams. The value of the fine shall be doubled in case the
same offense is repeated within one year from the date of the previous offense,
without exceeding two million (2,000,000) Dirhams.

(b) The acts that constitute a violation of the provisions of this Law and the fines
imposed on each of them shall be determined by a decision to be issued in this
regard by the Chairman of the Executive Council

Article (45)
Judicial Enforcement

The persons to be designated by a decision from the Director General shall have the
capacity of judicial enforcement officers in capturing the acts committed in violation of the
provisions of this Law and the decisions issued hereunder. For this purpose, they may draw
up the required reports and seek the assistance of the competent governmental
authorities in the Emirate, including police officers.

Article (46)
Grievances

Any interested party may complain, in writing, to the Director General from any decision or
action taken against him/her pursuant to this Law and the decisions issued hereunder,
within thirty (30) days from the date of being notified of the decision or procedure subject
of grievance. Such grievance shall be decided on, within thirty (30) days from the date of
its submission, by a committee formed by the Director General for this purpose. The
decision issued on this grievance shall be final, without prejudice to the right of the
complainant to resort to the Center to recover their right

Article (47)
Revenue Treatment

The proceeds from the fees and fines collected pursuant to the provisions of this Law and
the decisions issued hereunder shall go to the state treasury of the Government.

Article (48)
Regularization

(a) All Developers, Managements and Owners' Committees shall regularize their status
in accordance with the provisions of this Law, within six (6) months from the date of
its entry into force. The Director General may extend this period for a similar period,
if necessary.

(b) The provisions of this Law shall not prejudice the contracts concluded between the
developer and the owner before entry into force hereof as well as the statutes of
the complex approved by the Agency and filed with it, except for the formation of
owners' committees.

Article (49)
Substitution of the Owners’ Association with The Management

The Management shall substitute the owners’ association in the rights and obligations that
have arisen before entry into force of the provisions of this Law.

Article (50)
Issuing Executive Decisions

The Director General shall issue the necessary decisions to implement the provisions of this
Law and they shall be published in the Official Gazette of the Government.
 Article (51)
Repeals

(a) The aforementioned Law No. (27) of 2007 shall be repealed, and any provision in
any other legislation shall be repealed to the extent that it conflicts with the
provisions of this Law.
(b) The regulations, rules and decisions issued in enforcing the aforementioned Law No.
27 of 2007 shall remain valid to the extent that they do not conflict with the
provisions of this Law, until the issuance of the regulations, regulations and
decisions that shall replace them.

Article (52)
Publication and Entry into Force

This Law shall be published in the Official Gazette and shall come into force sixty (60) days
from the date of its publication.

Mohammed bin Rashid Al Maktoum

Ruler of Dubai

Issued in Dubai on 4 September 2019 AD

Corresponding to 5 Muharram 1441 AH