The Dubai Rental Disputes Center has established a new legal principle aimed at resolving recurring disputes between property owners and developers regarding the payment of service charges.

According to the ruling, the responsibility to pay service charges lies with the owner of the unit whose name is registered in the initial property register. This obligation applies even if the owner has not taken physical possession of the unit, provided that the refusal or delay in handover is due to reasons attributable to the owner. The obligation also commences from the date of completion of the building or from the moment the purchaser fails to pay the outstanding balance of the purchase price, even if the ownership has not yet been transferred to the final register.

This principle aims to ensure the sustainability of shared facilities and to prevent financial harm to developers or other property owners, thereby enhancing fairness, transparency, and stability in Dubai’s real estate sector.