New property law prevents developers from collecting service charges
Developers according to the new property law henceforth will not be able to collect service charges without being watched by RERA. To collect the service charge they will need clearance from RERA.
These guidelines introduced yesterday, of the Strata Law for jointly owned properties will not allow developers to collect service charges until they receive the clearance from Real Estate Regulatory Agency (Rera). As per the guidelines it is also necessary for the developers with under construction projects to submit their drawings to the Land Department's survey section for approval so that rights to communal areas are defined. In case of breach of rules by owners, Rera also has the right to temporarily administer a development.
"The guidance will give investors more confidence. This will make the market more mature and transparent," added Ghalita.
Sultan bin Butti bin Mejren, Director-General of the Land Department, said: "The implications of releasing these guidelines are profound and far reaching for Dubai's property sector in general."
