How Dubai service charges work and how to check them
Service charges are the annual fees owners pay for managing, running, maintaining and repairing a building's or community's shared parts, and under Law No. 6 of 2019 they must be approved by RERA and shared by each unit's registered area. Before you buy, look up the approved charges for the project in the DLD Service Charge Index and ask the seller for a statement showing no arrears. Unpaid charges create a lien on the unit, and it cannot be disposed of until they are paid.
Steps
Find the project in the Service Charge Index
Who: You, with your agent
Documents:
- Project name, or the title deed details of the unit
The index is on the DLD website and the Mollak site. You can search by title deed details or by project, choosing the property type and the budget year.
Estimate the annual charge
Who: You
Documents:
- Index result
- Unit's registered area
Your share is based on your unit's area as recorded in the real property register, as a proportion of the total, so multiply the approved rate by the registered area. Rates vary by building and year, which is why we do not quote typical rates.
Ask for a no-arrears statement
Who: The seller
Documents:
- Service charge statement from the management company
Mollak is the DLD's system for service charge accounts. Ask the seller for a statement showing the account is paid up, because the management entity has a lien on the unit for unpaid charges.
Check the developer's no-objection certificate
Who: The seller, with the developer
Documents:
- Developer e-NOC
To register a resale in a freehold area, the DLD requires a no-objection e-certificate from the developer. Ask the developer what it checks before issuing one.
Build the charge into your numbers
Who: You
Documents:
- Your budget or rental estimate
Service charges stay the owner's liability even when the home is let, so take them off the rent when you work out a net yield.
What the law says
| Topic | Rule |
|---|---|
| What charges cover | Managing, operating, maintaining and repairing the common parts, including cleaning, security and safety, insurance of the jointly owned property, and other costs in an approved master community declaration |
| Approval | A management entity may not charge owners for the common parts without RERA's approval |
| Audit | The budget must be approved by an audit firm recognised by RERA |
| Where the money goes | A dedicated bank account for each jointly owned property, which the management entity's creditors cannot attach |
| Your share | Your unit's registered area as a proportion of the total; the developer pays for unsold units |
| Usage charges | Shared facilities in a master community can carry separate usage charges |
| Refusing to pay | An owner may not refuse to pay RERA-approved charges, or give up their interest in the common parts to avoid them |
| Tenants | The owner pays unless the lease says otherwise, and stays liable if the tenant fails to pay |
| If unpaid | The management entity has a lien on the unit, and the unit may not be disposed of until the charges are paid |
Source: Law No. 6 of 2019, Dubai Legislation Portal
Deadlines and liability periods
| Stage | Time |
|---|---|
| Management entity must deposit collected charges into the dedicated account | 7 working days |
| Developer liability for structural defects under Law No. 6 of 2019, from the completion certificate (other legislation may add rights) | 10 years |
| Developer liability for defective installations under Law No. 6 of 2019, from handover (other legislation may add rights) | 1 year |
Figures as of ; sources: dlp.dubai.gov.ae.
Documents checklist
- Service Charge Index result for the project and budget year
- Unit's registered area from the title deed
- Seller's no-arrears statement
- Developer e-NOC (resale)
Common mistakes
- Using a portal estimate instead of the DLD-approved figure.
- Using the advertised area instead of the registered area.
- Not asking for a no-arrears statement before paying a deposit.
- Leaving service charges out of a rental yield.
Frequently asked questions
What are service charges in Dubai?
They are annual fees owners pay for managing, operating, maintaining and repairing the shared parts of a building or community. Law No. 6 of 2019 requires them to be approved by RERA and paid into a dedicated account.
How do I check service charges for a Dubai building?
Use the DLD Service Charge Index on the DLD website or the Mollak site, searching by project or title deed and choosing the budget year. Multiply the approved rate by the unit's registered area.
Who pays service charges, the owner or the tenant?
The owner, unless the lease says otherwise; even then, the law keeps the owner liable if the tenant fails to pay.
Can I sell my property with unpaid service charges?
No: the management entity has a lien on the unit and it may not be disposed of until the charges are paid.
Can a management company raise service charges without approval?
No. A management entity may not charge owners for the common parts without RERA's approval, and the budget must be approved by a RERA-recognised audit firm.