Developer asks for full year's service charges despite purchase at year-end. Can I refuse?

Dear Questioner,

According to Article 22 of the Dubai Jointly Owned Property Law No. 27 of 2007, the owner of a unit in a jointly owned property is responsible for paying the service charges for that unit.

This means that as the new owner of the property, you are responsible for paying the service charges from the date of transfer of ownership, which in your case is November 2023.

However, if the previous owner has already paid the service charges for the entire year, you may be entitled to a refund for the period of time that you were not the owner of the property.

In this case, you should request a copy of the previous owner's payment receipt and provide it to the developer as proof that the service charges have already been paid for that year.

If they still insist on you paying the full year's service charges, you may consider seeking legal advice and sending a letter from a lawyer to them explaining the situation and requesting a refund for the period of time that you were not the owner of the property.

In any case, it is always best to try to resolve the issue amicably with them first before taking any legal action. You can also reach out to the DLD.

You can easily contact us via phone or email.

Thanks!

Dear Questioner,

Your responsibility to pay their claim depends on the purchase contract. If it was agreed that you would bear these amounts, you must do so.

If the agreement was that you would not bear them, then the seller is responsible for paying this claim, and you have the right to claim the amount from him.

If anything else is required, don’t hesitate to contact us via email or call our offices in Dubai or Sharjah.

Jasim Al Haddad Law Firm

Legal Counsel and Consultations

Dear Questioner,

Thanks for your inquiry!

Regarding the above, we would like to inform you that, according to the Dubai Jointly Owned Property Law No. 27 of 2007, the owner of a unit is responsible for paying the service charges for that unit from the date of registration of the unit in the Land Department's register.

This means that as the new owner of the property, you are responsible for paying the service charges from the date of registration, which in your case is November 2023.

However, if the previous owner has already paid the service charges for the entire year, you may be entitled to a refund from the previous owner.

You can request a copy of the previous owner's service charge statement from them to verify if they have already paid for the entire year.

If the previous owner has not paid the service charges for the entire year, then you are responsible for paying the remaining amount for the year.

In this case, you can try negotiating with them to prorate the service charges for the remaining months of the year, as you only became the owner in November.

If they are not willing to negotiate, you can seek legal advice from a lawyer who specializes in real estate law. They can review your contract and advise you on the best course of action.

In any case, it is important to communicate with them and try to come to a mutual agreement. If you refuse to pay the additional fees without a valid reason, they may take legal action against you.

Kindly do not hesitate to contact us via phone or email for further inquiries.

Greetings,

Dear Questioner,

You can send a legal notice to the developer stating the grounds for not making the payments.

We can assist you in this regard.

Please contact us for detailed discussion and assistance.

Dear Questioner,

Certainly, I can assist you in drafting a letter to them regarding the additional service charges. Here's a sample letter you could use as a template:

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[Your Name]

[Your Address]

[City, State, Zip Code]

[Your Email Address]

[Your Phone Number]

[Date]

[Recipient Name]

[Title/Position]

[Company Name]

[Company Address]

[City, State, Zip Code]

Dear [Recipient Name],

I hope this letter finds you well. I am writing to address the recent request for additional service charges for the property [Property Address] that I purchased from [Company Name] in Q4 2023 and received the keys for in November 2023.

I acknowledge that service charges are an essential aspect of maintaining the quality and amenities of the property, and I am committed to fulfilling my obligations as a property owner. However, I believe there has been a misunderstanding regarding the timing of my ownership and the associated responsibility for service charges.

As you are aware, I became the owner of the property in November 2023, and it is my understanding that service charges are typically prorated based on the duration of ownership within a given billing period. Given that I took possession of the property towards the end of the year, I believe it is unfair to request payment for the entire year's service charges.

I have thoroughly reviewed the terms of my purchase agreement and the relevant legal provisions, and I have not found any explicit requirement for new owners to bear the burden of service charges accrued prior to their ownership. Additionally, I have consulted with legal professionals who have affirmed my understanding of the situation.

In light of the above, I respectfully request that [Company Name] reconsider its position regarding the additional service charges and provide clarification on the legal basis for this request. If there are any specific contractual provisions or legal statements that support [Company Name]'s position, I would appreciate it if you could provide them for my review.

Until such time as the matter is resolved, I must respectfully decline to pay the additional service charges. I trust that we can resolve this matter amicably and look forward to your prompt response.

Thank you for your attention to this matter.

Sincerely,

[Your Name]

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Feel free to customize the letter according to your specific circumstances and preferences. If you have any further questions or need additional assistance, please let me know!

Dear Questioner,

According to the Dubai Jointly Owned Property Law No. 27 of 2007, the owner of a unit is responsible for paying the service charges for that unit from the date of registration of the unit in the Land Department's register.

In your case, as you purchased the property in the last quarter of the year, you are only responsible for paying the service charges from the date of registration of the property in your name. This means that you are not responsible for paying the service charges for the entire year.

You can use this article as a basis for your argument with the developer. You can also mention that you have been the owner of the property since November 2023 and therefore should only be responsible for paying the service charges from that date.

If they continue to insist on you paying the full year's service charges, you can consider seeking legal advice and sending a letter from a lawyer to them. The letter should state the relevant laws and regulations and demand that they revise the service charges to reflect the period of your ownership.

It is important to note that the Jointly Owned Property Law also states that the owner is responsible for paying the service charges even if they were not aware of them at the time of purchase. Therefore, it is important to ensure that you are aware of any outstanding service charges before purchasing a property.

I hope this helps and wish you all the best in resolving this issue with the developer.

Hello,

I'm Sakina Dickenwala from MBC Legal.

According to Dubai Real Estate Law, the owner of a property is responsible for paying the service charges for that property.

This means that as the new owner of the property, you are responsible for paying the service charges from the date of transfer of ownership, which in your case is November 2023.

However, if the previous owner has already paid the service charges for the entire year, you may be entitled to a refund for the portion of the year that you were not the owner.

In this case, you should request a statement from Emaar showing the amount of service charges paid by the previous owner and the amount that you are responsible for paying.

If Emaar is still insisting on you paying the full year's service charges, you can send them a letter stating that according to the Dubai Real Estate Law, you are only responsible for paying the service charges from the date of transfer of ownership.

You can also mention that you are entitled to a refund for the portion of the year that you were not the owner.

If Emaar continues to refuse to refund the service charges, we can serve Emaar with a legal notice and file a complaint with the Dubai Land Department.

We have a team of lawyers specializing in real estate law to ensure that your rights are protected.

We are here for a quick call and a meeting to discuss further.

Kindly contact us via phone or email for further assistance.