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Homeowners to Benefit with Strata Law

Dubai homeowners can rejoice is getting a step closer to managing their own properties while getting control over how their service charges are spent.

As of November 2011, homeowner’s associations will have the right to open their own bank accounts, independent of developers.

The move is almost the final stage in the lengthy process of creating owners’ associations with the legal authority to negotiate contracts for upkeep, cleaning, security and other services in all freehold property in Dubai.

Such contracts are otherwise handled by property developers, some of whom have been accused by owners of overcharging and lacking transparency.

The new bank accounts will be available “within 30 days”, said Emad Farouq, the senior legal adviser at Dubai Land Department.

The banks would act as trustees to prevent rogue owners from misusing funds, said Marwan bin Ghalaita, the chief executive of the Real Estate Regulatory Authority (Rera), part of the Land Department. “You want to make sure that the withdrawal from that account is only going to the owners’ association business,” said Mr bin Ghalaita, who was elected last month to the FNC.

Continue reading on The National.

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