Dubai Rental Disputes Center (RDC) issued a new legal ruling confirming that buyers must pay property service charges before handover if the delay results from their own actions.
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Dubai Rental Disputes Center (RDC) issued a new legal ruling confirming that buyers must pay property service charges before handover if the delay results from their own actions.
Dubai Rental Disputes Center (RDC) issued a new legal ruling confirming that buyers must pay property service charges before handover if the delay results from their own actions. This important principle resolves ongoing disputes between developers and buyers about who bears maintenance costs during delayed handovers.
Under Law No. (6) of 2019 on Jointly Owned Properties, service fees are vital to maintain shared facilities in residential and commercial buildings. RDC clarified that when a buyer appears in the preliminary property register, they become responsible for service charges starting from either the project’s completion date or the default on payments—whichever occurs first.
Judge Abdulqader Mousa Mohammed, RDC President, stated that this decision ensures fairness by protecting compliant owners and developers while avoiding interruption to essential building services. It prevents those delaying payments from evading their financial responsibilities.
For UAE residents, the ruling offers legal certainty that property maintenance funding will continue smoothly, preserving quality and functionality in jointly owned buildings. The RDC’s efforts in resolving real estate disputes rapidly include handling nearly 50,000 execution files in 2024 and introducing self-execution services to recover dues efficiently.
This new legal clarity supports Dubai’s drive toward enhanced transparency, investor confidence, and stability in the property market.
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