About one third of homeowners in Dubai have not paid their annual maintenance fees leaving developers out of pocket, it has been reported.
One developer told Emirates Business they had applied to get a court order to force apartment owners to pay any outstanding fees
"We generally take a year's maintenance fee before handover. The problem now is that owners are not paying from the second year onwards," the CEO of a private developer, who did not wish to be named told the paper.
"We have moved court but our legal firm says it will take anywhere between six and 12 months to get an order from the court to get owners pay their dues," he said.
Another developer said 70 percent of owners in its buildings had paid the yearly fee, but they were having to fund the remainder, which was “an additional burden on us in these tough times.”
Dubai’s Real Estate Regulatory Authority has previously warned developers not to raise maintenance fees, the values of which must be cleared by the authority, the paper said.
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