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Wed 8 Dec 2010 05:01 PM

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EXCLUSIVE: Homeowners' charges 'should be reduced' for poor service – RERA CEO Bin Ghalaita

Regulator claims that homeowners can call police if unhappy with developers

EXCLUSIVE: Homeowners' charges 'should be reduced' for poor service – RERA CEO Bin Ghalaita
EXCLUSIVE: Homeowners' charges 'should be reduced' for poor service – RERA CEO Bin Ghalaita
EXCLUSIVE: Homeowners' charges 'should be reduced' for poor service – RERA CEO Bin Ghalaita
EXCLUSIVE: Homeowners' charges 'should be reduced' for poor service – RERA CEO Bin Ghalaita
EXCLUSIVE: Homeowners' charges 'should be reduced' for poor service – RERA CEO Bin Ghalaita
EXCLUSIVE: Homeowners' charges 'should be reduced' for poor service – RERA CEO Bin Ghalaita

Homeowners in Dubai who do not receive the benefits for which their service charges are supposed to entitle them should be entitled to pay less, Marwan bin Ghalaita, CEO of Dubai real estate watchdog RERA, has said.

Speaking to Arabian Business, he said: “They can discuss it with their owners’ association. Because it is like this: when I am paying something to be served, I should have the quality that they promised me. If they did not give it to me, that means they should reduce it from the amount I am paying. The ideas of owners’ associations and service charges should be transparent between all parties. Because it is a group of people living together in one structure.”

He added that developers who had handed over projects to investors should acquiesce to the demands of homeowners.

“RERA’s rules are not ignored by developers, they are enforced by RERA. But owners themselves should educate themselves more about the law. The law for owning property, law 27, is very clear for everybody. Once the building is completed, and the owners association has been formed and approved by RERA, service charges approved by RERA, the whole control of the building is in the hands of the owners association, not the developer.”

He added that homeowners in these circumstances who felt developers were nor respecting the wishes of their respective owners’ association should call the police.

Jon 9 years ago

Dubai police should expect an influx of calls.....

Shahdad 9 years ago

At last we have someone who speaks for us. Way to go Mr Ghalaita.

Red Snappa 9 years ago

Once again does this apply to developers with a Dubai government stake? I have seen many complaints in these discussion threads for instance about Nakheel and maintenance at Discovery Gardens. So is Mr. Ghalaita saying that in the situation where for example the air conditioning supplier was warning that the service would be shut down because of non-payment at Discovery Gardens, that the police could be summoned and directed to seek redress. Exactly how does the proposal work?

IMB 9 years ago

Interesting statement - we have not had our windows cleaned for the last 6 months.....very happy that they have now made it a criminal offence. Hope the police understand their new responsibilities

Raad 9 years ago

I think the police have far more important duties than responding to a property owner complaining from malfunctioning security gates, closed swimming pools, empty gyms with no equipment and the like. RERA has got to be the body to address developer's violations and it has to be the one to impose fines/reduction in service charges.

I propose the following : Homeowners should be allowed to deposit their service charges into an escrow account rather than straight to the developer. If the developer lives up to his obligation in providing the expected level of service, then the monies can be released to him. Otherwise, the HOA of that community can contract for that service elseware and be paid from that escrow account !

Maybeoneday 9 years ago

Finally someone who is understanding the core problems of Dubai Real Estate market. I totally support Mr.Ghalaita view, and it is a relief to see that finally Dubai is on the verge of becoming a more stable/controlled and fair market for owners. Too many abuses for the past 5 years which jeopardised investments, and led to the situation we know today (50% of units are empty). We need more regulations, more protection for real estate owners, to encourage foreign investments, and get rid of unprofessional developers behaviours. Only after that, we could safely consider buying a property and expect a good level of service.

Fed Up With RERA Saying One Thing And Doing Another 9 years ago

Another classic case of "it's everyone's fault but mine"! These comments bear no relation to reality whatsoever. Has Mr Ghalaita actually looked into how his dept handle such cases? They blindly back any developer who is managing a property. The reference to dealing with homeowner associations - what homeowner associations? Even homeowners that made the effort to set up interim HOAs have been rendered meaningless since the process ALSO required developers to fulfill a series of submissions by 3rd October, which was completely ignored. So all the interim HOAs are in limbo waiting to become HOAs. In the meantime the staff at RERA merely bend to whatever the developers want & turn a blind eye to every developer transgression & overcharging incident, in the process disregarding whatever laws are in place to protect homeowners. RERA's own laws no less! So please Mr Ghalaita, your words are very nice, but please tell them to your staff who seem to have a view altogether different!

SHERI 9 years ago

Well what power does RERA really have to enforce government backed companies or the Developer that is bullying the investor?

I am waiting for Nakheel to hand over my villa for over two years AFTER MY CONTRACT COMPLETION DATE and paying rent and a mortgage while my husband has lost his job. What happens if I lose my job?

No real completion date in site. God only knows the quality that will be finally handed over as contractors were not paid. I used to be proud of Dubai and now it seems that greed has come at the cost of expatriates' hard earned money and the lack of respect while they sit in their Majis and think of new ways to suck more money from expatriates living in Dubai.

Even the lawyers in Dubai are cheating the investors and as they are not insured they get away with misconduct.

What a mess, is there any one in power that has a fair solution????? Bring back the pride that Dubai once had worldwide and remember there is no blessing in cheating people!