Federal Law on the Creation and Regulation of Owners Association

In application of the provisions of this Law, the following words and phrases shall have the meanings assigned to each of them, unless the context requires otherwise:

State: United Arab Emirates

Ministry: Ministry of Energy & Infrastructure.

Minister: Minister of Energy & Infrastructure

Competent Authority: The Local Government Agency for Registering Real Estate Transactions

Owners Association: An entity consisting of Real Estate Owners in accordance with the provisions of this law, and referred to by the phrase (Owners Association) or by the word (Association) in this law

General Assembly of the Association: An entity consisting of members joining the Association who own Real Estate Units in the same property, and in the event of multiple Owners of one Real Estate Unit, they shall have one representative in this Association

Articles of Association: Articles of Association of Owners Association

Common Parts Management System (CPMS): A set of rules decided by the General Assembly of the Owners Association for the purpose of managing, developing, investing, maintaining and preserving the Common Parts

The Board of Directors (BOD): Owners Association BOD.

Chairman of the BOD: Chairman of the Owners Association BOD

Director: Director of the Owners Association

Real Estate: Residential Neighbourhood or building

Residential Neighbourhood: A group of Real Estate Units owned by several people with common services and facilities 

Building: One independent building with accompanying and common services. It consists of a number of Real Estate Units and is owned by several people

Real Estate Unit: Villas, apartments, floors, parking lots, shops, or any part of the building can be detached

Person: Natural or legal person

Owner: A person who owns a Real Estate Unit, whether it is one or more

Common Parts: All parts of the property intended for common use, whether attached or separate, or any other part whose nature requires it to be joint..

Detached Parts: All built and non-built parts (dividable ) and owned by a specific person or persons for the purpose of benefiting from them, as determined by the CPMS

Maintenance: The works necessary to preserve the property or the benefit, whether it is for an independent Real Estate Unit, for Common Parts, or for Detached Parts.

This Law aims at the following:

1. Establish a legal entity that includes property owners for the purpose of managing, developing, investing, maintaining and preserving Real Estate Units and the common and Detached Parts; and

2. Enhance social responsibility, provide a safe and positive environment, open channels of communication between Owners, and strengthening the bonds between them.

1. The provisions of this law shall be applied to every Real Estate established by the Federal Authorities in any region of the State territory, including the free zones, the Ownership of which, is jointly held by a number of persons..

2. The provisions of this law may be applied to Real Estate that is established by non-Federal Authorities after the approval of the Concerned Emirate.

 

The following shall be deemed Common Parts:

1. Real Estate land in buildings;

2. The masonry structure, foundations, pillars, columns and walls in buildings, which bear the masonry or bear the roofs;

3. The shared walls separating the units, and the walls of the chimney;

4. Warehouses used as service rooms, and Waste Disposals;

5. Chimneys and ventilation shafts for bathrooms, kitchens, drains and sewers;

6. Entrances, facades, stairs, cages, corridors, pathway, basements, elevators, and firs exits;

7. The guards rooms and their places and other workers in the construction service;

8. Cooling devices and all other types of pipes, fixtures and common extensions such as lighting fixtures, water, drainage, natural gas, internet, Satellite dishes and their accessories, except inside the Real Estate Unit, and its benefit is limited to the Owner of the Real Estate Unit;

9. Sports Facilities and facilities for rest and recreation and the like;

10. Equipment and devices that provide common services and the places where they are located;

11. Courtyards, outdoor driveways, walkways, gardens, parking lots, parks, and gathering places; and

12. The last surfaces in the buildings pursuant to the provisions of the building codes.

The Ministry and the Competent Authority may issue decisions to add any other Common Parts.

The Executive Regulations shall specify the controls and procedures that:

1. Achieve compatibility between the Ministry and the Competent Authority for the purposes of cooperation and coordination to provide facilities services, development, preservation and good investment of Real Estate covered by the provisions of this law, and all parts of these Real Estate; and

2. Determine the mechanisms for developing a guiding model for managing the Common Parts, and a guiding model for the Articles of Association of the Association.

1. Owners of Real Estate Units shall be partners in the Common Parts unless otherwise agreed upon;

2. The Common Parts whose benefit is limited to some Owners shall be the common property between them unless otherwise agreed upon;

1. The share of each Owner in the Common Parts that are not divisible is owned in common, and their share shall be estimated in proportion to the value of the area he owns in relation to the rest of the Real Estate Units;

2. The Non-divisible Common Parts of the Real Estate Unit shall be fully attached to all dispositions, unless otherwise agreed. Their share in the ownership of these areas shall be assessed as determined by the CPMS;

3. The Non-divisible Common Parts of the Real Estate Unit shall be fully attached to all dispositions, unless otherwise agreed..

1. The Common Parts that are divisible or may be disposed of or some of them by all kinds of actions may not be divided independently of the Detached Parts or related to them;

2. Save the provisions of Clause (1) of this Article, the Association may allocate a portion of the unconstructed Real Estate and dispose of it independently in accordance with the provisions of the CPMS.

3. No Owner may dispose of the areas attached to their unit other than the Owners of the same property, save cases stipulated in the CPMS..

The Common Parts shall be managed pursuant to a law that shall be suitable with the type of property (Residential Neighbourhood - Building). The following provisions shall be among the provisions of this law:

1. Determine the Common Parts of the property, and each Real Estate Unit;

2. Controls for the use of the common and Detached Parts, and for making modifications thereto;

3. The management of the Common Parts by the Association BOD

4. Methods and controls for investing Common Parts and Owners Association funds;

5. Develop integrated financial governance mechanisms for the Association, to ensure (as the case may be) the following Clauses:

  a. Independent accounts for investment, general reserves, and operations, and continuous monitoring of these accounts;

  b. Timely collection of dues, with urgent and effective legal procedures;

  c. Auditing the disbursement of Association funds in accordance with approved accounting standards;

6. Establish controls and procedures for hiring specialised companies to do some work necessary for the property;

7. Any other issues for which a decision is issued by the Minister or stipulated by the guidelines stipulated in Article (5) of this Law.

The Owner may, as determined by the CPMS, improve at their own expense those areas, or part of them or their utility, without, in any case, changing their allocation, provided that such improvement shall not cause harm to others.