Friday, February 27, 2009

New property service charges regulations in March

Four new regulations are likely to be announced in Dubai next month, following which, property owners in Dubai, can expect a respite from increasing service charges, announced RERA (Real Estate Regulatory Authority) yesterday.

As per the proposed new rules, service charges for buildings that have been delivered already, will be frozen at rates that prevailed last year, provided, the current rates are less than that of last year's or have been approved by RERA.

The freeze will remain valid until the first general assembly of Owners Association, due to happen within three months of registration.

Service charges for buildings that are due for hand-over soon, or are in the process of being handed over, will also be subject to approval by RERA.

The owners of buildings that have been already handed over, or are due for hand-over, will have to pay service charges until the owners approve the service charges decided during the General Assembly. Service charges already paid, will have to be adjusted to meet the revised rates.

Speaking on this issue, Reinaldo, Director of Fine and Country, said that developers need to understand that property owners are stakeholders on the development, and that their role is vital. Without the Owners Association, there will be no transparency on the dealings.

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