Who pays property service charges before handover? Dubai Rental Disputes Center clarifies

Dubai: The Dubai Rental Disputes Center (RDC) has established a new legal norm that directly affects property owners across the UAE: Buyers must pay service charges even before formally taking possession of their property, if delays in handover are due to their own actions.

This ruling resolves a common dispute between developers and buyers over who is responsible for service fees—particularly in cases where units are sold but not yet officially transferred or handed over.

According to Law No. (6) of 2019 on Jointly Owned Properties, service fees are essential to maintain shared facilities in residential and commercial buildings.

Delayed handovers

In many cases, handover has been delayed due to buyers missing payments, creating confusion over who should cover ongoing building maintenance costs. The RDC clarified that if a buyer is listed in the preliminary property register, they are responsible for service charges from the date the project is completed or from when they defaulted on payments—whichever comes first.

Judge Abdulqader Mousa Mohammed, President of the RDC, said: “This decision closes a legal gap and ensures fairness for compliant owners and developers. It guarantees that essential services in buildings continue without interruption and that those who delay payment cannot avoid their obligations.”

Impact on UAE residents

For property owners and residents in Dubai and across the UAE, this precedent offers added legal clarity and stability—particularly in buildings with shared amenities. It also ensures that service providers are paid consistently, which helps maintain the quality and functionality of jointly owned properties.

The RDC continues to play a key role in resolving real estate disputes quickly and fairly. In 2024 alone, the Center closed 49,817 execution files related to jointly owned properties. It also launched a self-execution service for service fee claims, allowing property managers to recover dues more efficiently—reducing delays and improving building operations.

This new legal principle supports Dubai’s ongoing efforts to enhance transparency and investor confidence in the property market, reinforcing its position as one of the most stable real estate environments in the region.