The Great Service Charge Mystery Explained

Analysis

In 2007 it was clear that His Highness Mohammed bin Rashid Al Maktoum, the Ruler of Dubai and Vice President of the UAE, had a vision for Dubai to implement world class standards in respect of service charges for jointly owned property

However, nearly five years later, many investors are still wondering what has become of the great promise of Dubai Law No. 27/2007 on Jointly Owned Property (‘JOP Law'), and many remain in the dark as to what the service charges they pay are used for.

Whilst the JOP Law deals with many issues, the brief highlights as they relate to service charges are:

(a) All owners have an undivided share in the common areas (Article 9);

(b) All owners must pay their share of the costs of maintenance, operation and repair of the common areas (Article 22); and