The Dubai Rental Disputes Center has issued a new ruling under which the unit holders are obliged to pay service charges even if they have not formally taken possession of their property, particularly when the delay in handover is due to the buyer.

This new legal principle announced on Thursday is aimed at resolving recurring disputes between property owner and property developer over responsibility for the cost of operating and maintaining shared building facilities.

The Center revealed that a unique situation had sparked legal uncertainty where units were sold on installments that were completed but not yet registered under the buyers’ names. In several such cases, developers withheld delivery due to outstanding dues, raising the question of who should cover the service fees — the buyer or the developer.

The case was referred to the General Authority for Unifying Principles within the Center. The Authority determined that the buyer whose name appears in the preliminary register of the residential unit is liable for service charges starting from the date of project completion or from the moment of default on payment obligations, even if final ownership has not yet been transferred. This ensures continuous facility operations and protects developers and compliant owners from financial burdens.

The Center said that this interpretation is anchored in Law No. (6) of 2019 on Jointly Owned Properties, which regulates the payment of such fees to cover management, operation, and maintenance costs. According to the law, either the developer or the owner must bear these charges for unsold units, with funds directed to management companies to ensure uninterrupted services and efficient building maintenance.

Judge Abdulqader Mousa Mohammed, President of the Rental Disputes Center, said this legislative gap has been addressed by interpreting the law’s underlying intent to secure the stability of jointly owned properties and guarantee the uninterrupted provision of essential services. “Holding defaulting buyers accountable for service charges aligns with the spirit of the legislation. By doing so, we have established a clear judicial precedent that eliminates confusion, strengthens a practical approach, and reaffirms our commitment to justice and fair dispute resolution,” he said.

The center said it closed 49,817 execution files related to joint ownership in 2024.  The Dubai Rental Disputes Center finalized 443 reconciliation agreements worth Dh190.7 million during the second quarter, and with an average settlement period of six days per case.

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Source: Khaleej Times 

03rd October, 2025