Legal Notice Service on Service Charge Receivables in UAE

The RDC, or the Rental Dispute Center, was established as the judicial wing of the Dubai Land Department to deal with rental disputes and conciliation procedures to endure economic and social stability along with supporting the sustainable growth of the Emirate. It is an online system where all the rental dispute procedures occur; everything is automated through the RDC.

The RDC is responsible for reconciling the issues between the unitholders and Home Owners Association (HOA) Management Companies which happen in the name of service charges.

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    Unitholders who have failed to pay the service charges on time are not eligible for an official clearance to rent or sell that Unit until the arrears have been cleared. This follows the end of the 30-day grace period after they are served with legal notices from the Home Owners Association Management Companies and RERA. All these cases will be resided by RDC, and verdicts will be given accordingly. The RDC has even opened a new window to investigate cases involving the owner’s association and service charges.

    The owner’s association began to issue legal notices to property owners who had failed to pay the service fees. The unitholders were provided with a provision to defend as RERA will appoint an independent body of auditors to verify and report discrepancies, if any, in owners’ balances towards the HOA in Jointly Owned Property, against which the Management Committee/Entity issues legal Cases at the Rental Dispute Centre (RDC).

    HLB HAMT is an auditor approved by RERA who can review service charge disputes related to the Unit holder’s balance.

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