أسئلة وأجوبة
Unpaid service charges in shared ownership: Who bears responsibility?
Dear Sir/Madam,
I am a 50% owner of a leasehold property. The lease agreement does not specify joint or several liability. It only mentions "xxxx and yyyy" as the lessees.
We have not paid service charges for the last 3 years. The other co-owner left the house 3 years ago and ceased all communications with me. The co-owner is uncontactable.
The management company initiated an RDC execution case against me and my co-owner.
Am I liable only for 50% of the total due amount? Or am I liable for 100% of the due amount? Can you please inform the correct article of law that covers this issue?
Dear questioner,
You need to submit the lease agreement and also need to show that you are only a 50% leaseholder.
You need to submit evidence before the court that you had only utilized the benefits up to your shares and try to connect, if possible, with the other party to conclude this matter.
If you need further clarification, please share your Whatsapp number.
Hi,
In the UAE, the legal framework regarding leasehold properties and obligations of co-owners is governed by a combination of federal laws and local emirate-level regulations.
When it comes to joint ownership of a leasehold property and associated liabilities such as service charges, the general principle is that unless specified otherwise in the agreement, co-owners are jointly and severally liable for obligations arising from their ownership.
This means that the creditor, such as the management company in your case, may pursue any one of the co-owners for the full amount due, rather than just their proportionate share.
However, the specific legal provisions applicable to your situation would depend on the emirate in which the property is located, as real estate laws can vary significantly from one emirate to another.
Dear Questioner,
Thanks for your enquiry!
Regarding the above, we would like to inform you that, according to Article 251 of the UAE Civil Code, in the absence of an agreement between co-owners, each co-owner is responsible for their share of the common expenses.
This means that as a 50% owner, you are only responsible for 50% of the service charges.
However, if the other co-owner is uncontactable and has not paid their share, the management company may pursue legal action against you for the full amount.
In this case, you can file a counterclaim against the other co-owner for their share of the expenses.
It is important to note that the specific terms of your lease agreement may also impact your liability for the service charges.
It is recommended to review the lease agreement and kindly feel free to contact us via phone or email to seek legal advice for a more accurate assessment of your situation.
Greetings,
Dear Questioner,
According to Article 251 of the UAE Civil Code, in the absence of an agreement between the co-owners, each co-owner is responsible for their share of the common expenses.
This means that in your case, you would only be responsible for 50% of the service charges.
However, if the management company is unable to collect the full amount from your co-owner, they may pursue you for the remaining 50%.
In this case, you may have to take legal action against your co-owner to recover their share of the expenses.
It is important to note that the specific terms of your lease agreement may also impact your liability.
It is recommended that you consult with a legal professional for specific advice on your situation.
