Service-charge liability in jointly owned property developments in Dubai continues to generate practical questions, particularly where completion of a project occurs before registration of title in the purchaser’s name. This issue most commonly arises in off-plan transactions structured through Sale and Purchase Agreements that separate completion, handover, and registration into different stages of the transaction lifecycle.

Dubai Law No. 6 of 2019 concerning Ownership of Jointly Owned Real Property establishes the legal framework governing the management and financial operation of jointly owned developments. Within this framework, service charges represent the primary mechanism through which the management, operation, maintenance, and repair of common property are funded, ensuring the continued functioning of shared facilities and infrastructure within a development.

Article 25 of the law provides that a unit owner must pay their proportionate share of service fees to the management entity to cover expenses associated with the common parts of the jointly owned property. The provision further clarifies that the owner’s contribution is calculated based on the unit recorded in the Real Estate Register, which is regulated under Dubai Law No. 7 of 2006 concerning Real Property Registration. The developer remains responsible for service charges relating to unsold units within the development.

The reference to the Real Estate Register is primarily directed toward identifying ownership records and determining proportional allocation of service charges. It does not establish registration of title as the sole trigger for service-charge liability where a development has already reached completion and entered into operational management.

In practice, once a jointly owned development is completed, operational obligations begin immediately. Building systems become active, utilities serving common areas are consumed, maintenance contracts take effect, and community management services commence. These obligations arise independently of the administrative process of title registration and require continuous funding through service charges.

In 2025, the Rental Disputes Centre issued a legal principle clarifying that service-charge liability may arise from the project completion date where the purchaser is recorded in the preliminary property register. The RDC addressed disputes involving completed residential units sold on installment arrangements where purchasers had not completed payment obligations and final registration had not yet occurred. The RDC confirmed that service-charge liability may arise from completion of the project or from the date of purchaser default, even in the absence of final title registration. This clarification reflects the need to ensure uninterrupted maintenance and operation of jointly owned developments once they become operational.

The RDC principle does not alter the statutory framework established by Law No. 6 of 2019 but instead complements Article 25 by clarifying the timing of liability in situations where completion precedes registration. Article 25 establishes the obligation of unit owners to contribute to service charges and the method of allocation, while the RDC principle explains when responsibility may shift in completed developments where a purchaser’s interest is already reflected in the preliminary property register.

Service-charge budgeting and collection are further regulated by the Real Estate Regulatory Agency through the jointly owned property regulatory framework and the Mollak system administered by the Dubai Land Department. This system provides oversight of service-charge budgets, financial reporting, and collection procedures, ensuring transparency and accountability in the management of jointly owned property developments.

From a practical standpoint, completion of a development represents a critical operational milestone. Developers must ensure that completion status, preliminary registration records, and purchaser payment obligations under the Sale and Purchase Agreement are clearly documented, as these factors may determine when service-charge responsibility transfers from developer to purchaser. Purchasers, in turn, should recognize that service-charge obligations may arise once a project becomes operational, even where title registration or physical handover remains pending due to incomplete contractual performance.

Conclusion

The interaction between Article 25 of Dubai Law No. 6 of 2019, the real property registration framework under Law No. 7 of 2006, and the RDC’s 2025 legal principle provides clarity on service-charge liability in jointly owned property developments. While ownership records in the Real Estate Register determine allocation of service charges, the RDC has confirmed that liability may arise upon completion of the project where the purchaser’s interest is recorded in the preliminary register or where contractual payment obligations remain outstanding.

Completion of a jointly owned development should therefore be understood as a legally significant milestone from which operational and maintenance funding obligations may begin to apply within the jointly owned property framework. Recognizing the distinction between registration formalities and the operational readiness of a completed development helps clarify when service-charge liability may arise, while ensuring continuity in the management and preservation of jointly owned property assets in Dubai.

Note: This Legal Update / Newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.rian and religious purpose in accordance with the law.