The Mollak Vision

Disclaimer : This is only an attempt to consolidate information on Mollak. For any information related to the same, please click here to verify the details.

The Law No. (6) of 2019 was launched by the Real Estate Regulatory Authority (RERA) in Dubai.

Mollak

 

Q: What does this mean for a person renting and/or owning a Home/Estate?

– The Law No. (6) will facilitate the maintenance of all the information regarding the owners, members of the committee of owners, and building management charts outlining the maintenance procedures in common areas by the Land Department.

– The Law No. (6) will mandate the creation of a 9 member committee selected by RERA, established when 10 percent of the joint real estate units are registered. The committee is tasked with ensuring the proper management of common areas, and reviewing annual budgets.

– As there was no regulatory body for the above mentioned functions, the builders used to perform this task of maintenance of the common areas, making the owners bear the full share of the cost even if there is unsold property on the name of the builder still present.

– This law shall help develop more transparency of records and transactions as far as the maintenance of the common spaces is concerned.

 

Q: How does The Law No. (6) of 2019 work?

– The developer is required to submit all necessary documents of the jointly owned real estate project to the Land Department within 60 days of the completion date and receipt of completion certificate. The Department can extend the deadline for this by 30 days.

– The 9 member owner’s committee will then be formed of which the developer cannot be part of unless there are unsold units.

– This leads to a contract with a facility management company for operating or maintaining common facilities, this company cannot charge fees of operation unless it receives an approval from RERA.

– RERA will receive reports every six months on the management of the jointly owned real estate property and common areas, and is in charge of regulating and inspecting the management of the same.

– According to the The Law No. (6), RERA CEO can appoint another facility management company in case the developer or the management company fails to ensure proper maintenance of the common areas.

Overlooking and managing of the common areas and the maintenance of the same should be streamlined due to the presence of The Law No. (6), for the owners, developers and the residents of real estate projects in Dubai.

More about Mollak

For efficient real estate governance RERA also launched an integrated , web based electronic system. The key aim is creating owner’s association for jointly owned properties in Dubai.

Mollak vision ensures transparent and reliable joint ownership in the real estate sector , by not only registering these bodies but also helps in maintaining an integrated database of relevant records and service charges. It also offers end to end services for owner’s association, 468 bank accounts have been processed under Mollak, for service charges. 88 management companies, 1,212 real estate projects and around 200,000 real estate units were registered and approved by RERA, through Mollak. 7 banks and 8 auditors will be the trustees for co-owned properties and audit the applications seeking project approval.

Mollak is an innovative initiative and a step towards a more secure and dynamic real estate structure and serves in the best interest of all the stakeholders.

The Law is effective within 60 days of its publication in the Official Gazette.

Ref: https://www.khaleejtimes.com/business/real-estate/upto-dh2-million-fine-under-new-dubai-real-estate-law-

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About the Author: Rashilta