(MENAFN - Khaleej Times) Residents of the Green Community are threatening legal action against their developer unless they establish an
The news follows a statement by Peter Crogan, CEO of property management firm BCS, that the development was "unique" and no association needed to be created.
However, Marwan bin Ghalita, Director-General of the Real Estate Regulatory Agency (Rera), told Khaleej Times that all developers must comply with the strata law to be passed in March. Two years ago, owners in the Green Community were slapped with a service charge increase of 200 per cent by developer Union Properties (UP) and this year the increase has been up to
10 per cent.
Under the new Rera law, owners will be able to approve or reject the budget for service charges in their communities by sitting on the owners' associations. Developers have until September to register the associations. "We are thinking of launching legal action against UP as this is a major concern for all of us," said one resident, who did not wish
to be named.
According to official figures, 25 per cent of owners in the development have refused to pay their service charges for this year.
No one from BCS Strata Management was willing to comment on the matter, but a source said that the policy was set by the developer, UP.
A senior official at UP, who would not be named, said that previously contracts at the Green Community, which is part of Dubai Investment Park (DIP), did not need to be registered with Rera as the development was outside its jurisdiction. The same was also believed to be the case with Uptown Mirdiff.
However, a law passed in September by Rera said that all leasehold and freehold contracts across Dubai needed to be registered with them.
"Rera regulates all real estate in Dubai, and the Land Department registers all real estate rights and transactions," said Marwan bin Ghalita, when asked about the jurisdiction over DIP and Uptown Mirdiff.
"The law is clear and anyone who says anything different should write to us for clarification."
The senior source at UP said that the company would enter into negotiations with Rera to clarify whether they now needed to register contracts and establish an owners' association.