Provided that a lawsuit is filed in "dispute settlement"
Dubai Land: Failure to pay service fees freezes the owner's transactions
Dubai Land: The law is clear in determining the penalties for failure to pay service fees.
From the source
The Dubai Land Department confirmed that failure to pay service fees for the residential unit by the owner could lead to freezing rental transactions on the residential unit, including renewing the lease contract, or registering new contracts.
In statements to Emirates Today, the department clarified that there is one condition for the process of freezing these transactions, which is that a lawsuit relating to the matter be submitted to the Rental Disputes Settlement Center, the judicial arm of the department.
Service fees
In detail, the Dubai Land Department confirmed that it aims, from the various laws and legislations issued by it, to protect various parties, including owners, tenants and investors, in order to reach a safe investment environment befitting the position Dubai has achieved.
She told Emirates Today that if the owners do not pay service and maintenance fees, or they fail to do so, the rental transactions on the residential unit are frozen, when a complaint is filed with the Rental Disputes Settlement Center, where a court order is issued to freeze transactions, until When the payment process is completed by the methods approved in the system.
3 penalties
Dubai Land stated that the law was clear in determining the penalties for those who failed to pay fees for shared services and facilities, which it defined in three parts: not to allow registration or renewal of lease contracts on the unit, and the execution judge to take all judicial measures against the default Payment as a debtor, in addition to the possibility of selling the real estate unit by public auction.
She explained that the owner has to pay his share of the services allowance, to cover the expenses of managing, operating, maintaining and repairing the common parts, to the authority that manages the property or the shared parts or facilities, appointed by the Real Estate Regulatory Agency (RERA), noting that this share is determined by the area ratio, Constituted by the unit of the total area of the common property.
auction
Dubai Land stressed that the owner or the sub-developer may not refrain from paying the service fee and the use approved by the corporation, and if the owner does not pay his share of the services allowance, or any part thereof, the administration authority, after 30 days of notification, has recourse to a judge. Execution, which has the right to sell the unit for which the consideration has not been paid, through public auction to collect the value of this allowance.
It is noteworthy that the Real Estate Regulatory Agency (RERA) notifies the owner, who is defaulting in payment, to speed up the payment of installments on time, in order to avoid implementing the legal procedures, referred to as selling the real estate unit by public auction.
Judicial notices
The Dubai Land Department, represented by the Real Estate Regulatory Agency (RERA), has issued a judicial warnings system against those who fail to pay fees for shared services and facilities in the local real estate market in the emirate, based on Law No. (6) of 2019 regarding ownership of joint real estate.
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