Dubai: In a groundbreaking move, Dubai will now require property management firms to disclose any relation to other entities involved in the process.
This effectively requires these businesses to list out any ownership or other interests they share with developers of a particular project. It also reduces the chances of conflicts of interest among related parties.
“Decisions regarding operations and decision-making must be taken free from the direct influence of related parties,” said Marwan bin Ghalita, CEO of RERA (Real Estate Regulatory Agency). “And transactions should be carried out in accordance with the usual market terms and conditions, based on the principle of independent decision-making.”
The changes have been in accordance with last year’s JOP (Jointly Owned Property) Law, which set about clear demarcation between homeowners’ rights and those that developers and OA management firms can leverage.
The changes form part of the ‘Conflict of Interest & Party Transactions’ policy for jointly owned properties.
It will establish special procedures to regulate transactions of all parties of jointly-owned properties and manage conflicts to avoid exploiting private interests.
An existent relationship among related parties must be disclosed... or otherwise risk compromising the transactions of jointly owned property managers with other parties
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