By Prof Jeevan D’Mello – CEO, Zenesis Corp, Board Member – Community Associations Institute
There is no doubt that Dubai has captured the imagination of real estate investors around the world. The city’s vibrant property landscape features some of the most iconic hotels, malls, commercial centers, and residential developments— many of which are located within expansive, master-planned communities that showcase state-of-the-art systems and world-class design.
However, when it comes to residential communities, exceptional design and construction quality alone are not enough to ensure long-term livability and capital appreciation. Since homeowners share ownership of common areas, the harmonious and efficient management of these spaces becomes essential for the well being of all residents and the protection of their investment. This is where Owners’ Committees play a critical role, serving as a vital link between property owners and management teams. They operate within the legal framework of Dubai’s Law No. (6) of 2019 Concerning Ownership of Jointly Owned Property and uphold a dedicated Code of Ethics to guide their responsibilities.
The Legal Foundation and Formation
The establishment and operation of Owners’ Committees in Dubai are fundamental to the governance of “Jointly Owned Property”, which includes communities and their common areas. Jointly Owned Properties (JOP) were previously known as Owners’ Associations. The Real Estate Regulatory Agency (RERA) plays a central role in their formation and oversight.
An Owners’ Committee can be constituted once at least ten percent of the total Units within the JOP are registered in the names of their respective Owners in the Real Property Register. RERA is responsible for appointing the members, with a maximum of nine members, including the chairman and vice-chairman. A Developer may only be a member if they own unsold Units in the property. Owners’ Committees are specifically mandated for “Category 1: Major Projects” and “Category 3: Real Property Projects Other Than Major Projects and Hotel Projects”.
For a member to serve on an Owners’ Committee, they must meet specific criteria: they must have full legal capacity, reside in the community they want to represent, possess good character and repute, diligently pay their Service Charges, and actively participate in committee meetings. RERA has the authority to reconstitute an Owners’ Committee at any time, provided new members meet the requirements.
Core Roles and Responsibilities
The primary function of an Owners’ Committee is to represent the interests of owners and ensure that the community is managed effectively. Their duties, as exclusively outlined in Law No. (6) of 2019, are comprehensive and critical for property upkeep and community well-being:
1.Oversight of Management Entity: They are tasked with verifying that the Management Entity (developer or licensed management company) fulfills its responsibilities for the management, operation, maintenance, and repair of the common areas, adhering to the law and the Building Management Regulation. 2.Financial Review: Committees review and provide recommendations on the annual budgets for the maintenance of the community, and for this purpose, they can request financial reports.
3.Problem Resolution: They discuss challenges related to the management, operation, maintenance, and repair of the common areas and community property, submitting recommendations to the Management Entity or RERA as appropriate.
4.Owner/Occupant Advocacy: They receive complaints and suggestions from owners and occupants regarding the management of the community and forward them to the Management Entity. If issues are not addressed within fourteen days, they escalate them to RERA.
5.Management Entity Replacement: For Category 3 projects, Owners’ Committees can request RERA to replace the Management Entity and provide advice on selecting a new one.
6.Reporting Defects: They notify the Management Entity or RERA of any defects in the structural parts of the property or any damage/defect in common areas requiring urgent repair.
7.Community Coordination: Committees coordinate with RERA, the Management Entity, or the related local authority on safety, environmental, security, and other related matters.
8.Proposing Amendments: They can submit proposals regarding the use of common areas or amendments to the Building Management Regulation, which require RERA’s approval.
Meetings of Owners’ Committees are held regularly, typically four times a year, with the first meeting being convened within thirty days of the constitution. A majority of members, including the chairman or vice chairman, must be present for meetings to be valid. Each member holds one vote, regardless of the number of units they own, and in case of a tie, the chair casts the deciding vote.
Ethical Conduct: A Guiding Principle
Beyond their specified duties, Owners’ Committee members are bound by a stringent Code of Ethics, emphasizing integrity and responsibility. This code highlights several key principles:
• Integrity and Fairness: Members must act honestly and fairly, maintaining strict confidentiality of information pertaining to the JOP, owners, or occupants.
• Best Interests: Their actions must always serve the best interests of all owners and the JOP.
• No Imposition of Third Parties: Committee members are prohibited from imposing on the Management Entity the contracting of any entity for goods or services that is related to a committee member.
• Respect for Community: They must not cause nuisance in common areas or behave in a way that unreasonably affects a person’s lawful use and enjoyment of a unit or common areas.
• Non-Interference: Members are explicitly instructed not to interfere in the day-to-day management and operation of the JOP.
• Controlled Communication: Communication with service providers should only occur through the Management Entity.
• Conflict of Interest Management: Any actual or potential conflict of interest must be disclosed to the Owners’ Committee, and the members must abide by the committee’s decision regarding their participation in discussions or votes on the matter.
• Legal Compliance: All committee members must comply with the laws and regulations of the Dubai and the UAE.
• Responsible Media Use: Committee members are not permitted to use any form of media (including internet, radio, paper, digital media, etc.) to discuss or complain about private issues related to the JOP, other committee members, or disputes concerning the property.
• Professional Conduct: Members pledge to adhere to behavioral and ethical rules when interacting with other committee members, the Management Entity, and service providers.
Transparency and Accountability: They acknowledge that RERA or other relevant authorities can inspect their information and accounting systems. RERA also reserves the right to accept or reject any application or cancel committee membership at any time without cause. Furthermore, members must declare that they have no conflicts of interest and are not affiliated with relevant real estate activity companies, such as brokers or real estate consultants.
The Importance of a Well-Functioning Committee
Owners’ Committees are more than just a bureaucratic requirement; they are integral to fostering a thriving and well-maintained community. By providing oversight, advocating for owners’ interests, and ensuring financial transparency, these committees contribute significantly to property value retention and resident satisfaction. Their adherence to the legal framework and ethical guidelines ensures that decisions are made in the collective best interest, promoting responsible governance and peaceful coexistence in Dubai’s dynamic real estate environment.
