Strata Law & Off-Plan Property Rules Flashcards

Which law governs jointly owned properties (apartments and common areas) in Dubai?

Answer: Law No. 27 of 2007 (Jointly Owned Properties Law — Strata Law)

Dubai's Strata Law (Law No. 27 of 2007) and its executive regulations govern jointly owned property (JOP) including apartments in multi-unit buildings, townhouses in gated communities, and their common areas. It establishes Owners Associations (OAs) and sets out their powers and obligations.

What is an 'Owners Association' (OA) in Dubai?

Answer: A mandatory legal entity established for jointly owned property developments to manage common areas and enforce community rules

Under Strata Law, every jointly owned property development must have a registered Owners Association — a mandatory non-profit legal body comprised of all property owners. The OA is responsible for maintaining common areas, collecting service charges, and enforcing the community's declaration.

What are 'service charges' in a Dubai jointly owned property?

Answer: Annual fees paid by property owners to the Owners Association for maintenance and management of common areas

Service charges (also called maintenance fees) are annual fees levied by the Owners Association on each property owner based on their unit's share of common area. The charges fund maintenance, cleaning, security, utilities, and management of shared areas. RERA regulates service charge rates.

What is a 'Common Area' under Dubai's Strata Law?

Answer: Parts of a jointly owned development owned by all unit owners collectively (lobbies, corridors, elevators, pools, parking)

Common areas are all parts of the building or community that are collectively owned by all unit owners, including lobbies, corridors, elevators, stairwells, pools, gyms, parking (in some cases), and mechanical rooms. Each owner's entitlement is proportional to their unit area.

Under Dubai Strata Law, who is responsible for preparing the Owners Association's budget?

Answer: The OA Manager (hired management company) in consultation with the OA Board, subject to approval by the General Assembly

The OA Manager (a RERA-licensed management company) prepares the annual budget covering operational costs and reserve fund contributions. The OA Board reviews it, and it must be approved by the General Assembly of owners. RERA oversees the process and caps service charges based on area benchmarks.

What is a 'reserve fund' in the context of an Owners Association?

Answer: A mandatory fund accumulated to finance future major repairs and capital expenditures in a jointly owned property

The reserve fund (or maintenance reserve) is collected as part of service charges to accumulate funds for future major repairs — roof replacement, elevator upgrades, facade work. It ensures the OA can afford large-scale maintenance without imposing large special assessments on owners.