WHAT HAPPENS WHEN THERE IS A DISPUTE?

Below is an in-depth analysis what the law provides, for each type of project:

Major projects

If the developer is found to be incompetent or unable to manage the common property under this first category in a manner that ensures their sustainability and serviceability, the executive director at RERA may appoint a specialised management company to manage and operate the common property (Article 37).

Hotel projects

If the hotel project management company is found to be incompetent or unable to manage the common property under this second category in a manner that ensures their sustainability and serviceability, the executive director of RERA may appoint a specialised management company to manage and operate the common property (Article 37).

Real estate projects other than major or hotel projects

If RERA finds that the management company is incompetent, inefficient or unable to manage the common property, it shall appoint an alternative management company to manage the common property (Article 38)

The new Law was implemented on September 4, 2019; however, developers, management companies and owners committees were given a six-month transition period to comply. The transitional period expired on March 3, 2020.

We expect that over time RERA or Dubai Land Department will publish application forms for membership to the owners committee and the exact procedure to be followed to form it. As of this date, no application forms have been published.