DUBAI 19 November 2019: Dubai Land Department (DLD) yesterday explained the Joint Real Estate Ownership Law in Dubai and the Mollak system, which will make common service charges easy to pay.
The Mollak system is the first integrated global electronic system for real estate governance. It comprises an online automation process that requires developers and joint ownership property managements, through their managers, to provide accurate information regarding the services provided in joint ownership properties so that Rera can approve the service fees. This system also assists joint ownership property owners, ascertains smooth and easy operations with property managers, and provides a new and integrated structure to monitor accounts related to service charges in these projects by relying on the financial accounts that operate as per the mechanism of the escrow account.
Significant figures and statistics from Mollak system reveal that 231,277 units and 1,240 buildings were registered in the system, while the number of real estate management companies registered was 89. The system issued more than 45,000 invoices, and in terms of bank accounts of joint-ownership properties operating under escrow accounts, there are 1,191 General Fund bank accounts and 1,191 Reserve Fund bank accounts.
The number of ten financial auditors are accredited and ten banks are approved by Rera for these accounts. The total amount of service fees audited in the current Mollak system (according to the new system of work and in cooperation with the accredited audit offices of Rera) reached Dh1.3 billion, while Rera also expects to approve up to Dh4 billion during the next phase.
At the end of September, Law No. (6) of 2019 on joint real estate ownership in Dubai was issued. Its provisions apply to all major real estate development projects and joint properties in Dubai, including private development zones and free zones. The new law is part of a package of legislation and regulatory decisions aimed at enhancing the capabilities of the real estate sector, strengthening its competitiveness, encouraging investments in it, and guaranteeing the rights of all parties involved in the sector, be they owners, tenants, investors, or real estate developers.
The law covers all common grounds, property management companies, and developers. On-ground implementation has already begun, and the team is fully prepared and prepared to implement and act accordingly. The figures show some advantages in re-registering all units and property management companies, while the Mollak system is ready for use by all developers and property owners.
Judge Abdulqader Mousa, Chairman of the Rental Disputes Center (RDC), said the centre has been able to complete lease cases in up to eight days. “Following the promulgation of the Joint Real Estate Ownership Law, we have added a new mandate to the centre, namely disputes relating to common real estate issues, in cooperation with Rera and Emirates Real Estate Solutions. We managed a complete technical system for this type of case and have formed Trial Chambers, Appeals, and Implementation Requests for Service Fees. There are adjudicators, which will be judged on the same day, in addition to the option of remote litigation, without the need to attend hearings to adjudicate this case; the law will be applied as of tomorrow. ”
Majid Al Marri, CEO of the Registration and Real Estate Services sector at DLD, said that the Real Estate Registration and Services Sector will focus its attention on the real estate register of common property, including all land owned by developers of joint properties, such as parking spaces and open spaces, pointing out that the law will resolve any disputes concerning these types of properties, for easy segregation and determination of responsibilities and duties.
