The Dubai Rental Disputes Center (RDC) recently clarified service charge responsibility for UAE property buyers. Under the new ruling, buyers must pay service fees even before taking possession if they cause handover delays.
As a result, the decision settles long-standing disputes between developers and buyers over maintenance costs when properties are sold but not yet handed over. Consequently, it protects both parties and ensures fairness across the real estate sector.
According to Law No. (6) of 2019 on Jointly Owned Properties, buyers must pay service charges that maintain shared areas in residential and commercial buildings. These fees cover cleaning, security, and general upkeep, all of which preserve property value and contribute to a well-functioning community.
Often, buyers delay payments, which leads to handover issues. This situation caused confusion regarding who should fund ongoing building maintenance. Therefore, the RDC clarified that buyers listed in the preliminary property register must pay service charges from the project completion date or from the date they missed payments, whichever occurs first.
Judge Abdulqader Mousa Mohammed, President of the RDC, stated that the ruling closes a legal gap and guarantees fairness for both owners and developers. He added that the decision protects essential building services while preventing buyers from avoiding their obligations.
Industry experts have praised the clarification. As a result, developers can plan operations confidently, knowing maintenance costs are covered. At the same time, buyers benefit because the ruling clearly defines their responsibilities and financial obligations.
Moreover, the decision strengthens the UAE real estate sector and boosts investor confidence. By specifying responsibility for service fees, authorities increase transparency, reduce disputes, and ensure that buildings remain well-maintained for both residents and businesses.
Looking forward, developers and buyers may review contracts more carefully to avoid future conflicts. In addition, the ruling encourages timely payments and supports efficient management of shared facilities in residential and commercial properties.
By establishing clear service charge responsibility, the RDC creates a transparent framework for the property market. Consequently, buyers, developers, and residents understand their obligations, supporting a stable and reliable real estate environment across the UAE.
