Key Legal Checks Before Investing in Shared Properties in the UAE

high-angle view buildings in the city

Dubai’s booming real estate market, marked by luxury developments and ambitious projects, has created incredible investment opportunities. However, with such growth comes inevitable challenges, especially in the form of real estate dispute cases. Whether you’re an investor, homeowner, or developer, understanding legal services in Dubai particularly regarding property dispute resolution is essential.
This article delves into the common types of real estate dispute, how to manage a dispute property tax assessment, strategies for how to resolve property line dispute issues, and answers to important questions like, can a solicitor help me with a property dispute?

 
1. Verify the Active Owners’ Association (OA) or Management Entity (ME)
 
Under Dubai Law No. 6 of 2019 (known as the Jointly Owned Property Law), each shared property must be managed by a licensed Management Entity (previously called an Owners’ Association), overseen by a registered Owners’ Committee and regulated by RERA (Real Estate Regulatory Agency).
 
Legal Tip:

Request the property’s registration documents via RERA or the Dubai Land Department’s JOP register. Make sure the OA/ME is:

  1. 1. Properly registered
    2. Actively operating
    3. Managing fund through a regulated escrow or dedicated account

Real Example: In 2009, buyers at Vue De Lac sued RERA over delays and design changes. The OA later won compensation after project cancellation, highlighting the importance of a proactive OA.

 
2. Check Building Regulations and By-Laws


All jointly owned properties follow legally binding by-laws, approved by RERA. These rules govern:

 
  • 1. Owner and tenant conduct
  • 2. Renovations and modifications
    3. Insurance requirements
    4. Dispute resolution
  • 5. Developer liability (10 years for structural defects, 1 year for unit defects)
 
Checklist Before You Buy:

1. Request a copy of the OA’s constitution and management agreement

2. Confirm any intended renovations comply with building codes and OA guidelines
3. Understand your responsibilities and potential penalties for non-compliance
4. Check how the OA handles complaints and maintenance petitions

ASK Consultancy supports clients in reviewing and interpreting these documents, preventing unintentional legal violations.


3. Understand Service Fees and Charges
 
All co-owners must contribute to service charges, which fund the maintenance of shared areas. According to Law 6 of 2019 (Articles 25–28), these fees must be:
1. Approved by RERA
2. Allocated based on unit size
3. Stored in a dedicated account
4. Audited by an independent third party

If owners default on payments, OAs can:
 

1. Charge up to 12% annual interest

2. Impose fines of up to AED 2,000
3. Suspend voting rights until dues are cleared
4. Place liens on units and auction properties, following RERA procedures


Case in Point:

The 2025 Tayseer Initiative by RERA introduced flexible payment plans to avoid property seizure during financial difficulty.

In contrast, owners at Skycourts Towers and Al Furjan raised concerns about unexplained increases in chiller and maintenance fees—highlighting the need for fee transparency.

 

4. Evaluate Facilities Management & Rule Enforcement


Facilities management contracts must cover:

• Elevator, plumbing, and security maintenance
• Garbage collection
• Parking enforcement

• Insurance for shared spaces


Under the law, property owners have the right to inspect:

• Maintenance budgets
• Audit reports
• Insurance documents

• Vendor agreements
• Meeting minutes


If the OA or ME neglects their duties, RERA can intervene by:

• Issuing penalties up to AED 100,000
• Appointing an interim administrator

ASK Consultancy helps clients file formal complaints, escalate persistent issues via RERA or the Dubai REST app, and resolve disputes effectively.

Read More: Legal Services in Dubai: Your Guide to Real Estate Disputes and Property Law

 

Conclusion: Legal Due Diligence Is Essential


Investing in a jointly owned property in the UAE is a significant financial decision—and one that comes with legal obligations. At ASK Consultancy, we provide expert guidance in:

• Document verification and auditing
• Filing formal complaints with RERA
• Resolving disputes through mediation, arbitration, or court
• Lien enforcement and escrow tracking


Whether you’re a first-time homebuyer or a seasoned investor, our legal team ensures your property deal is secure, compliant, and protected. Contact ASK Consultancy for a confidential consultation and legal support in all your shared-property investment needs in the UAE.