Tenant Obligations Service Charges & RERA Fees in Dubai Property Law

  • 2 days ago
Discover the #legal responsibilities of tenants in Dubai's real estate market, focusing on service charges and RERA registration fees. Explore how Dubai's #propertylaws, including #DubaiLaw No. 26/2007 and Dubai Law No. 6/2019, define tenant obligations and clarify the role of tenancy contracts. Learn more about property law with insights from #propertylawyersinDubai and the #UAE.
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Transcript
00:00Are Tenants Obligated to Pay Service Charges and RERA Registration Fees in Dubai?
00:06In Dubai's dynamic real estate market, tenants often contend with questions regarding regulations,
00:11contracts and financial responsibilities. One common query revolves around the payment of
00:16service charges and RERA registration fees. Are tenants mandated to bear these costs,
00:21or are there exceptions? Let's explore the legal framework to shed light on this relevant issue.
00:27Dubai's land and real property leasing fall under the Governance of Dubai Law No. 26-2007,
00:33on the organization of the relationship between landlords and tenants in the Emirate of Dubai.
00:38This law defines the rights and obligations of landlords and tenants. Additionally,
00:42Dubai Law No. 6-2019 on the ownership of jointly owned properties in the Emirate of Dubai,
00:48applies to main real estate development projects and jointly owned properties,
00:52including special development zones and free zones. Article 4 of Dubai Law No. 26-2007
00:57underscores the significance of a comprehensive tenancy contract. It mandates that such contracts
01:03thoroughly detail aspects such as the leased real property, its purpose lease term, rental amount,
01:09payment method and property owner's name if different from the landlord. All lease contracts
01:13subject to this law must be registered with the Real Estate Regulatory Agency, RERA. According
01:18to Article 22 of Dubai Law No. 26-2007, payment obligations towards government entities regarding
01:25fees and taxes are typically determined by the terms of the tenancy contract. Unless specified
01:30otherwise, tenants are responsible for paying all fees and taxes related to the leased property to
01:35government authorities and RERA registration fees. RERA registration fees are compulsory
01:41charges payable to a government entity. Tenants are obligated to pay these fees unless exempted
01:46by specific provisions in their tenancy contract. Service charges, as defined in Article 2 of Dubai
01:51Law No. 6-2019, include annual fees collected from property owners to cover management,
01:58maintenance, commissioning and repair expenses of jointly owned properties. Property owners may
02:03contribute to service fees based on the proportion of their unit's area to the total area of the
02:08jointly owned property. Developers typically cover fees for unsold units and may pay on behalf of
02:13buyers for sold units. Conclusion. Any additional charges during tenancy contract renewals must align
02:19with the initially agreed upon terms. Contractual agreements play an important role in defining
02:25financial responsibilities. Clear communication and thorough review of lease contracts are
02:29essential for tenants to understand and negotiate their obligations effectively.
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