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The Homeowners Association is a hotly discussed topic but widely misunderstood topic. Here is what you need to know about the HOA.

In Dubai, the management and governance of jointly owned properties are structured to delineate the roles and responsibilities among the Homeowners Association (HOA), the Real Estate Regulatory Agency (RERA), and the appointed Management Company. Understanding these distinctions is crucial for property owners to navigate their rights and obligations effectively.

Homeowners Association (HOA):

The HOA, often referred to as the Owners' Committee, is established under Dubai's Law No. (6) of 2019 Concerning Ownership of Jointly Owned Real Property in the Emirate of Dubai. This law repealed the earlier Law No. (27) of 2007 and redefined the framework for property ownership and management in jointly owned properties.

The Owners' Committee primarily serves an advisory role, focusing on the following functions:

  • Reviewing Budgets: The committee can examine proposed budgets for the maintenance and management of common areas but does not possess the authority to approve or reject them. RERA approves 

  • Documenting Meetings: While the committee can document meeting minutes, the distribution of these documents is managed by the Community Management Company to ensure consistency and compliance with regulations.

  • Handling Complaints: The committee can escalate complaints or concerns from homeowners to the Management Company or RERA but lacks the enforcement power to resolve issues or make binding decisions regarding service charges.

  • Management Entity Replacement: May request RERA to replace the Management Entity of any Real Property project that falls in overseeing the upkeep of the community.

Real Estate Regulatory Agency (RERA):

RERA operates as the regulatory authority overseeing real estate activities in Dubai. Its key responsibilities include:

  • Approving Service Charges: RERA will only approve service charges once certified by an audit firm recognised by RERA for this purpose.

  • Regulation and Oversight: RERA establishes and enforces regulations to ensure transparency and fairness in the real estate sector.

  • Approval of Community Management Companies: RERA approves and licenses Management Companies that are appointed to manage jointly owned properties, ensuring they meet specific standards and comply with the law.

  • Dispute Resolution: RERA provides mechanisms for resolving disputes between homeowners, Management Companies, and other stakeholders, maintaining harmony within the property sector.

Management Company:

Appointed by the developer and approved by RERA, the Management Company holds significant authority in the daily operations of jointly owned properties. Their responsibilities encompass:

  • Budget Preparation and Implementation: They prepare budgets for the maintenance and management of common areas and are responsible for their execution upon approval.

  • Maintenance and Repairs: Overseeing the upkeep of common areas, including arranging repairs and regular maintenance to ensure the property's standards are upheld.

  • Enforcement of Rules: Implementing community rules and regulations, and taking necessary actions to address violations, thereby ensuring a harmonious living environment.

Legal Framework:

The delineation of these roles is outlined in Law No. (6) of 2019, which emphasizes that while the Owners' Committee plays a vital role in representing homeowners' interests, the ultimate authority in decision-making, enforcement, and management lies with RERA and the appointed Management Company. You can read the law in full here: dlp.dubai.gov.ae

Understanding this structure ensures that homeowners are aware of the appropriate channels for their concerns and the scope of authority held by each entity involved in the management of jointly owned properties in Dubai.

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