DUBAI // Residential property owners say Dubai's law allowing homeowners associations is being implemented too slowly and without enough transparency three months after it was made public. The strata law, which was years in the making, shifts control of building maintenance from developers to owners associations. Its final text was released on May 25, though it had come into effect on April 13.
Owners are frustrated that developers control the first stage of the handover process. The developers have until November 12, including a one-month grace period, to register owners associations with Dubai's Real Estate Regulatory Agency (Rera). The paperwork required includes a list of which parts of the property count as common space to be given over to owner care. In the meantime, to smooth the transition, the government is urging developers to organise interim owners associations (IOAs) and listen to their concerns. But they are not legally bound to accept the suggestions.
While several IOAs are up and running, some owners have been unable to reach their developers to form one. Others believe their input is being ignored on issues such as common areas and worry that developers may claim them as their own. Conflicts have broken out already. Owners of Shoreline Apartments at the Palm Jumeirah are in dispute with the developer Nakheel for five clubhouses spread among the 20 buildings.
In marketing brochures, buyers were promised access to gymnasiums and beachside pools for "a nominal fee". Instead, they have paid upwards of Dh4,500 a year. The gym of one clubhouse was converted into a private health club, where Shoreline residents must buy a Dh7,000 annual membership to exercise. "They can't sell off our common area to other people," said one owner, who asked not to be named. "They should register the thing right."
An official from Nakheel, who requested anonymity, said the developer was still classifying its property on a "fair and reasonable" basis and would present the plan to owners upon completion. A lack of communication with developers has aggravated matters for some landlords who own residences built by Emaar Properties in the Arabian Ranches, Springs and Downtown areas. When they e-mailed the developer in early August about joining an IOA, Emaar replied that it would send more information soon. After 10 days, it had yet to respond.
"We have heard nothing," said one owner, who requested anonymity. "When there's an invoice to be given, they contact us." Emaar has 40 employees dedicated to forming IOAs and has set up 16 of an expected 60 so far, it said in a statement. It has also posted notices in its communities requesting volunteers to join the IOA boards. It has begun holding awareness meetings and mailing out information packets, it said.
"We are confident of completing the required processes in the stipulated time frame," Emaar said. Peter Crogan, the head of BCS Strata Management Services, which assists owners associations, said any delays in implementing the law were hard to justify. "Perhaps the timeline may have been a bit short since the law was retroactive, but those firms have known about this law coming into being for two and a half years," he said. "In a way, there's no excuse."
One property holder in The Lakes spoke of his frustration. Though his IOA board held meetings for a year about issues such as whether the lakes in the development counted as common space, the board seemed to have no sway over Emaar. He and others felt so frustrated that they quit. "It was a committee in name only, one that had absolutely no rights," said the owner, who asked not to be named. "That's what this whole strata law was supposed to address - giving owners more input in managing their communities. It's like nothing has changed."
Emaar said its response from IOAs so far had been largely positive. "Debates and discussions are always to be expected," the company said. According to the strata law, dissatisfied owners can bring disputes over common space to Rera, which did not respond to requests for a comment. But some worry if the recourse will be effective. "When you read the law, you think 'very good, very good'," said a landlord, who owns 20 properties among seven developers. "You can make so many laws but if nobody is there to apply it, it's useless."
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