Joint Ownership Disputes Under UAE Strata Law

What law governs jointly owned property disputes in Dubai?

• Law No. 6 of 2019 (Concerning Ownership of Jointly Owned Real Property in the Emirate of Dubai) replaced the previous strata regime under Law No. 27 of 2007. It applies to all jointly owned residential, commercial, and mixed-use developments in Dubai, including those in free zones.
• Disputes are heard by the Rental Disputes Settlement Centre (RDC), which has jurisdiction over service charge claims, maintenance obligations, common area disputes, and enforcement of building bylaws.
• Developers remain liable for structural defects for ten years and fixture defects for one year from the date of the completion certificate, regardless of whether the units have been sold.

Who this applies to

This article is for unit owners in Dubai apartment towers, villa communities, and mixed-use developments who are dealing with service charge disagreements, maintenance failures, common area disputes, or developer defect claims. It is equally relevant to developers managing the post-handover transition, management entities running building operations, and owners' committee members seeking to understand their governance rights and obligations.

If you are a buyer assessing an off-plan purchase, see our separate guide on red flags in Dubai off-plan property. If you are a developer structuring a new project, see our article on RERA developer obligations for off-plan projects. This article focuses on what happens after handover, when the building is occupied and the relationships between owners, the developer, and the management entity generate friction.

The governance structure under Law No. 6 of 2019

Law No. 6 of 2019 introduced a clearer governance framework for jointly owned property in Dubai. Understanding the structure is essential because the identity of the party responsible for a particular obligation determines who you sue and where.

The management entity replaces the old concept of the owners' association manager. It is the company responsible for the day-to-day operation and maintenance of the building or community, including common areas, shared facilities, and building services. The management entity is appointed by the developer initially, and later by the owners' committee (subject to RERA approval). It must hold a valid RERA licence and operate through the Mollak system.

The owners' committee is a body with full legal personality that represents the interests of unit owners in their dealings with the developer, the management entity, and third parties. It is elected by the unit owners and has the right to review budgets, approve service charge levels, oversee the management entity's performance, and bring legal proceedings on behalf of the owners. The committee's legal standing was a significant improvement over the 2007 law, which left owners' associations in an ambiguous position regarding their capacity to sue, open bank accounts, or enter into contracts independently.

The developer retains specific obligations even after handover. These include the defect liability obligations (structural and fixture), the obligation to establish the building management system before selling any units (for major projects and hotel projects), and the obligation to register the jointly owned property scheme with the DLD within 60 days of obtaining the completion certificate.

For real estate lawyers in the UAE, the practical starting point in any jointly owned property dispute is to determine whether the claim lies against the developer (defects, failure to hand over common areas), the management entity (maintenance failures, service charge misapplication), or another unit owner (breach of bylaws, unauthorised modifications).

Service charge disputes

Service charges are the single most frequent source of disputes in Dubai's jointly owned property sector. They fund maintenance, cleaning, security, landscaping, shared utilities, insurance, and the sinking fund for future capital expenditure. The amounts are not trivial: service charges in prime Dubai towers can exceed AED 20 per square foot per year, and annual bills for a standard two-bedroom apartment commonly run from AED 15,000 to AED 40,000 depending on the building and location.

How service charges are set and approved

The management entity prepares an annual budget for the building or community, which must be submitted to RERA for approval through the Mollak system. RERA reviews and approves the budget before the management entity can collect service charges from owners. This is a mandatory step. A management entity that collects charges without RERA-approved budgets is in regulatory breach.

Owners can verify the approved service charge rate for their building through the DLD Service Charge Index or the Dubai REST app. These tools allow owners to compare their building's charges against similar developments, providing an objective basis for challenging charges that appear excessive.

Common grounds for dispute

Disputes typically arise over charges that exceed the RERA-approved budget (the management entity bills more than what was approved), unexplained year-on-year increases without corresponding improvement in services, lack of transparency in how funds are spent (owners cannot obtain detailed breakdowns), sinking fund contributions that appear disproportionate to the building's age and condition, and charges levied on owners for works that benefit only a subset of units.

What owners can do

The first step is to raise the issue with the management entity and request a detailed breakdown. If the response is unsatisfactory, the owner can escalate to the owners' committee, which has the authority to demand financial reports and audit the management entity's accounts. If internal resolution fails, the owner can file a formal complaint with RERA through the Mollak portal. RERA investigates using the approved budget as the benchmark.

If RERA's intervention does not resolve the matter, the owner can file a claim with the RDC. The RDC has jurisdiction over service charge disputes and can order the management entity to refund overcharged amounts, adjust future charges, or comply with the approved budget. In serious cases of persistent non-payment by an owner, the management entity can pursue enforcement through the RDC, which can ultimately result in the judicial sale of the unit to recover outstanding approved charges.

The Tayseer initiative (March 2025)

To reduce the volume of service charge arrears reaching the RDC, RERA launched the Tayseer initiative in March 2025, which facilitates flexible payment plans for owners facing accumulated service fee debts. The initiative works through the management entity and aims to resolve arrears without formal legal proceedings. Owners in financial difficulty should explore this route before disputes escalate.

Developer defect liability

After handover, the most commercially significant disputes in jointly owned property involve defects in the building structure or common area systems. The developer's liability under Law No. 6 of 2019 is reinforced by the UAE Civil Code's decennial liability regime, creating a dual layer of protection for owners.

Ten-year structural liability

Under Article 40 of Law No. 6 of 2019 (and Article 880 of the UAE Civil Code, Federal Law No. 5 of 1985), the developer is liable for structural defects in the common parts for ten years from the date of the completion certificate. Structural defects include defects in foundations, load-bearing walls, columns, beams, roofing, and any element that affects the stability or safety of the building.

This liability is non-excludable. The developer cannot contract out of it, and it runs regardless of whether the units have been sold to end purchasers or remain in the developer's inventory. The ten-year period begins from the issuance of the completion certificate by the relevant authority (Dubai Municipality or the master developer), not from the date of handover to individual unit owners.

One-year fixture liability

The developer is also liable for defects in fixtures within the common parts for one year from the date of handover of the unit to the owner. Fixtures include mechanical and electrical works, sanitary fittings, sewerage, elevators, air conditioning systems, and other installed equipment. This is a much shorter window, and owners or the owners' committee must act quickly to identify and report fixture defects before the period expires.

Practical enforcement

The owners' committee (or an individual owner, for defects within their own unit) should document defects thoroughly with photographs, independent expert reports, and written notifications to the developer. The notification should be sent within the relevant liability period and should specifically describe the defect, reference the legal basis (Article 40 of Law No. 6 of 2019), and request remediation within a stated timeframe.

If the developer fails to remedy the defect, the owners' committee can file a claim with the RDC or, for higher-value disputes, the Dubai Courts. Expert evidence (structural engineers, quantity surveyors) is typically required to establish the defect, its cause, the required remediation, and the cost. For related guidance on how liquidated damages interact with defect claims in construction projects, see our separate article.

Common area and modification disputes

Disputes over the use and modification of common areas and individual units are the second most frequent category of strata litigation in Dubai.

Unauthorised modifications

Under Law No. 6 of 2019, an owner may not make modifications that affect the structural elements, external appearance, or common parts of the jointly owned property without prior written approval. This includes enclosing balconies, changing window frames, installing external signage, modifying shared corridors, or converting residential space to commercial use.

If an owner makes unauthorised modifications, the management entity has the right to require the owner to restore the premises to their original condition. If the owner refuses, the management entity can carry out the restoration works and recover the costs from the owner. The owners' committee or the management entity can also file a complaint with RERA or the RDC to enforce compliance.

Common area encroachment

In villa communities and low-rise developments, disputes frequently arise over encroachment on common areas: extending gardens into shared green space, blocking access roads with structures, or appropriating common parking spaces. The developer's original community plan, registered with the DLD, defines the boundaries between individual units and common parts. Any encroachment is measured against this plan, and the remedy is restoration to the original boundaries.

Noise, nuisance, and use restrictions

The building bylaws (approved by RERA as part of the building management system) govern permitted uses, noise levels, pet policies, short-term rental restrictions, and other behavioural standards. Breach of the bylaws is enforceable through the management entity and, ultimately, the RDC. In practice, enforcement of nuisance and behavioural provisions is inconsistent and depends heavily on the management entity's willingness to act. Owners who face persistent violations should document the issue and escalate through the owners' committee before filing with the RDC.

Owners' committee governance disputes

The owners' committee is the elected representative body of the unit owners. Its functions include reviewing and approving budgets, appointing and overseeing the management entity, representing owners in legal proceedings, and holding the developer accountable for defect obligations. Governance disputes within the committee, or between the committee and the developer, are a growing area of strata litigation in Dubai.

Election disputes. The process for electing the owners' committee is set out in the building bylaws and must comply with RERA's registration requirements. Disputes over election procedures, eligibility of candidates, voting thresholds, and the validity of proxy votes are resolved through RERA or the RDC.

Developer influence. In many Dubai developments, the developer retains unsold units and therefore holds voting power on the owners' committee proportional to its ownership share. This can create a conflict of interest where the developer effectively controls the committee and influences decisions about the management entity (which may be a developer affiliate), service charge levels, and defect claims against the developer itself. Owners concerned about developer dominance should review the bylaws to understand voting mechanics and consider whether collective action by independent owners can shift the balance.

Management entity disputes. The owners' committee has the authority to terminate and replace the management entity, subject to the terms of the management agreement and RERA's approval. If the management entity is underperforming, overcharging, or failing to maintain the building, the committee can initiate a change. This process often becomes contentious, particularly where the management entity is a developer affiliate and the developer resists replacement.

Dispute resolution: the RDC and beyond

The RDC is the primary forum for jointly owned property disputes in Dubai. It handles service charge claims, maintenance complaints, defect claims, bylaw enforcement, and governance disputes. Most RDC cases are resolved within one to two months, which is significantly faster than the Dubai Courts for claims of equivalent value. For a comparison of dispute resolution options, see our guide on choosing the right UAE arbitration clause in 2026.

For high-value defect claims or complex multi-party disputes (such as claims against both the developer and the management entity involving subcontractor liability), the Dubai Courts may be more appropriate. The choice of forum depends on the claim value, the complexity of the evidence, and whether the dispute involves parties outside the RDC's jurisdiction.

What owners, developers, and management entities should do now

Owners. Verify your building's approved service charge rate through the DLD Service Charge Index. Attend owners' committee meetings and vote. Document any defects in writing and send formal notifications within the statutory liability periods. If you are in service charge arrears, contact the management entity about the Tayseer payment plan before the dispute escalates.

Developers. Ensure the building management system is established and RERA-approved before selling any units. Register the jointly owned property scheme with the DLD within 60 days of the completion certificate. Budget for defect remediation claims within the ten-year structural liability period, which remains a live exposure on completed projects.

Management entities. Submit budgets through Mollak and collect charges only after RERA approval. Maintain detailed financial records and provide breakdowns to owners on request. Act on unauthorised modifications and bylaw breaches promptly, before small issues become entrenched disputes. Prepare for audit by RERA-approved firms and keep escrow accounts reconciled.

Owners' committee members. Understand the scope of the committee's authority under Law No. 6 of 2019. Exercise oversight over the management entity's performance and finances. Where the developer retains significant ownership and voting influence, consider whether the committee's independence is compromised and whether collective action is warranted.

Legal advice may be required to assess your position in a joint ownership dispute, enforce defect liability claims against a developer, or challenge service charge decisions through the RDC.