Am I liable for the previous owner’s unpaid service charges when buying a Dubai property?

Dear Inquirer,

Thank you for your question!

If the NOC clearly states that there are no outstanding dues, and it is issued by the authorized Owners Association or building management company, then you are generally not liable for prior unpaid service charges.

However, if the Mollak system still reflects pending amounts, there is a risk that the issue may resurface in the future, especially if the outstanding amount is not officially written off or resolved.

We strongly recommend a legal review of the NOC, service charge statement, and SPA before proceeding to protect yourself from future claims.

You may book a consultation or assign our firm, Future Vision for Advocacy and Legal Consultancy, to represent you in reviewing and securing the transaction.

Best regards,

While the NOC indicates no current dues from the owner, Mollak is the official DLD record, and if it shows an outstanding balance, you could potentially be liable for it in the future as the new owner.

Crucially, insist that the seller and building management update the Mollak system to reflect a zero balance for those pre-auction charges before you finalize the deal.

If immediate Mollak clearance isn't possible, demand a legally binding indemnity from the seller, but getting the Mollak record updated is by far the safest option.

If you need further clarification, you may ask.

Thank you for your detailed query!

In property transactions involving units previously acquired through judicial auctions, it is common to encounter legacy service charge issues.

While a No Objection Certificate (NOC) issued by the Owners Association or management company typically serves as confirmation that the current seller holds no outstanding dues, it does not always guarantee that historical liabilities, particularly those not properly adjusted in the Mollak system, will not resurface.

If the service charge amount from before the auction remains reflected in the Mollak account, you risk being held liable in the future, even if the NOC currently reflects a "no dues" status. In practice, DLD or Mollak may later flag the unit with an outstanding amount when you attempt to sell or lease it.

To protect yourself, I recommend:

- A formal undertaking from the building management or Owners Association confirming that you, as the new buyer, will not be held liable for the previous dues.

- Incorporating a protective clause in the Sale and Purchase Agreement (SPA) and trustee filing records stating that the liability rests with the management or prior titleholder.

- Engaging legal representation to correspond directly with the Owners Association and Mollak to obtain written clearance confirmation and close the compliance gap before final registration.

I’d be happy to represent you in this matter and ensure your purchase is clean and risk-free.

Feel free to reach out to me directly via WhatsApp or phone at [------------] to discuss your situation and next steps in more detail.

Best regards,

Suhail Rana

Advocate & Legal Consultant

Hello,

According to UAE law, the seller is responsible for any outstanding service charges or fees related to the property at the time of sale.

This means that the seller should have settled any outstanding dues before selling the property to you. However, if the seller did not do so, you may be held responsible for paying these fees in the future.

To protect yourself, it is important to include a clause in the sales contract stating that the seller is responsible for any outstanding fees or charges related to the property. This will ensure that the seller is held accountable for any unpaid dues.

Additionally, you should also request a clearance certificate from the building management company or owners' association stating that there are no outstanding fees or charges related to the property. This will provide you with proof that the seller has settled all dues before the sale.

If the building management company is taking a long time to update the Mollak system, you may want to consider delaying the purchase until the outstanding fees are cleared. Alternatively, you can negotiate with the seller to deduct the outstanding fees from the purchase price.

Dear Questioner,

Yes, there is a risk that you may be held liable for the pending service charges in the future, as service charges in Dubai are typically linked to the property, not the owner.

However, if the NOC clearly states there are no outstanding dues, this serves as legal proof that the Owners Association has no current claim.

Recommendations:

- Ensure the NOC is officially issued and mentions no outstanding dues.

- Request written confirmation from the Owners Association or building management that the old charges (pre-auction) will not be claimed from you.

- Delay the transfer until the Mollak record is updated, if possible, or include a clause in your sale agreement protecting you from any future claims.

Please do not hesitate to contact us with your question number at [-----------].

Dear Client,

Thank you for your detailed explanation!

Based on the information provided, I recommend that you obtain written confirmation from the building management or Owners’ Association confirming that all outstanding service charges have been fully cleared and that you, as the new owner, will not be held liable for any previous dues.

Additionally, ensure that the Mollak system reflects a zero balance for your unit before finalizing the transaction. If there are any discrepancies, it would be prudent to delay the transfer until all records are updated.

If you require assistance with drafting the necessary documents or communicating with the relevant parties, please let me know. I am here to help.

Best regards,

Hello,

According to Article 31 of Law No. 6 of 2019 regarding joint ownership in Dubai, financial obligations (such as service and maintenance fees) remain with the previous owner until the date of ownership transfer and are not automatically transferred to the new owner unless they explicitly pledge or acknowledge this.

No Objection Certificate (NOC):

When a NoC is issued by the management company/owners association, it indicates that there are no financial dues on the property to date.

In practical and legal terms, this certificate protects you as a buyer, and you cannot be required to pay dues for a period prior to ownership unless you have contractually agreed to this.

Dear questioner,

It is the seller's responsibility to deliver a property free of encumbrances, including outstanding service charges.

Insist that the seller (who purchased in the auction) works with the building management to get the Mollak record updated.

Do not proceed with the transfer of ownership until the outstanding amount on Mollak is officially updated as cleared or written off.

The NOC, while important, may not be sufficient if the official system still shows a liability.

If you need further clarification, kindly share your WhatsApp number.

Dear Questioner,

Thank you for sharing the details regarding your intended property purchase in Dubai.

Based on the information provided, it appears there are unresolved service charges linked to the property from before it was acquired at auction.

While such charges are generally the responsibility of the previous owner under Law No. 6 of 2019 (Dubai Jointly Owned Property Law), the fact that these dues still reflect in the Mollak system presents a potential risk for you as the incoming owner—even if a No Objection Certificate (NOC) has been issued.

To safeguard your position, it is essential to ensure that the NOC clearly states that all service charges, including historical ones, have been fully settled.

Additionally, I recommend verifying that the Mollak system has been updated accordingly and considering an escrow arrangement until this matter is conclusively resolved.

Given the legal and financial implications, I strongly advise scheduling a consultation to review the NOC and related documentation in detail.

This will help ensure that you are fully protected and not exposed to future liability.

Please let me know a convenient time to proceed with a consultation.

Best regards,

Hello,

Since the No Objection Certificate confirms that the owner has no outstanding dues, you can complete the transaction.

However, you must ensure that the dues owed before the auction are not added to the owners' system as a right after the purchase. In this case, there is no need to worry.

When purchasing a Dubai apartment acquired through auction, ensure the NOC explicitly states no outstanding dues, review auction terms for debt responsibility, monitor Mollak clearance progress with the management company, and consult a property lawyer to safeguard against potential liability for pre-auction service charges.

We are honored to represent you legally.

If you wish to be represented, please contact us via email or by phone.