UAE passes draft law on homeowner associations



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Abu Dhabi: The UAE Federal National Council on Tuesday approved a draft law on the Owners’ Association, to regulate managing, developing, investing, maintaining and preserving property units.

The law shall apply to every building developed by the federal authorities in any area of the country’s territories, including free zones, and properties developed by other parties after the approval of the concerned emirate.

According to the draft law, the following are common parts: the land of the real estate in the buildings, the building structure, foundations, pillars, columns and walls in the buildings, which bear the building or bear the roofs.

Also common ownership are the common separation walls between units, walls prepared for chimneys, warehouses used as service rooms, places designated for waste, chimneys and ventilation skylights, kitchens, gutters and sewers, entrances, facades, stairs and their cages, corridors, basements, elevators, emergency exits, refrigeration devices and other types of pipes, common fixtures and installations, such as lighting equipment, water, sewage, natural gas, internet, satellite dishes and their accessories except what is inside the real estate unit and its benefit is limited to the owner of the property, sports facilities, facilities intended for rest and entertainment, cars, parking lots, gathering places, and rooftop.

The Ministry of Infrastructure Development and the competent authority may issue decisions to add any other common parts.

Under the law, penalties stipulated in this law does not prejudice any other severe punishment stated in any other law.

“Punishable by imprisonment for a period not exceeding one year and a fine not less than Dh500,000, but not exceeding Dh1,000,000, or one of these penalties, are each of the following offences: Dealing with others in the name of the owners’ association before registering it at the ministry or the competent authority, and assuming the capacity of a chairman, a member of a board of directors, or a director of an owners’ association.

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Also punishable by imprisonment for a period of at least one year, and a fine not less than Dh100,000, but not exceeding Dh500,000, or one of these penalties, is a chairman or member of a board of directors, or a director of the association, who submits budgets or invalid contracts with his knowledge of this, and everyone who approved incorrect documents related to the owners’ association with knowledge.

A penalty of imprisonment for a period of at least a year and a fine of not less than Dh500,000, but not more than Dh2,000,000, or either of these two penalties, shall be inflicted on whoever embezzles or squanders money from the association’s funds, or facilitates for others to seize it.


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