Developers to foot costs of owners association

Any three apartment owners can serve a notice on the developer to undertake the exercise to form an owner's association (OA) in case the latter has failed to comply with the strata regulations, according to an expert.

"If a developer has failed to register the Jointly Owned Property (JOP) declaration for completed projects by October 13, the deadline set by Real Estate Regulatory Agency for registration of owners association, any three owners can serve a notice on the developer to undertake this exercise," Graham Yeates, Head of Strata Management, Cluttons, told Emirates 24|7.

Besides, if the developer fails to respond within 30 days by lodging the required documents, the owners may proceed with lodgement of the said documents and recover the costs from the OA who may in turn recover these expenses from the developer.

"So the ball is in the owners' court... It is also in the developer's best interest to accede to these directions and proceed swiftly to minimise their commitments in this regard."

As per the law, an OA is established when title to the first unit is transferred to a party other than the developer. The developer is then obliged to transfer title to the unit into the name of the purchaser upon completion of the project. Therefore both purchasers and the developer have the power to ensure that the OA is created.

This website had earlier reported that developers who have failed to file the JOP declarations with Rera, were likely to be penalised with their properties unlikely to be registered by the Land Department.

On October 5, Rera CEO Marwan bin Ghalitha said that the agency had decided not to extend the October 13 deadline and those failing to meet the deadline will face strict penalties.

"Currently, there are no plans to extend the deadline set for completion of registration of owners association in Dubai. However, nothing can be said if the decision will changed later," he added.

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