What happens if service charges are not paid?
If service charges are not paid in Dubai, several legal consequences can occur. These charges, which cover maintenance and upkeep of common areas, are mandatory for all property owners. Failure to pay can result in the following actions:
Legal Notice and Penalties: After a 30-day grace period, owners may receive a legal notice demanding payment. The managing entity, as approved by the Dubai Land Department (DLD) and Real Estate Regulatory Authority (RERA), can take legal action to recover unpaid charges.
Restriction on Selling or Leasing: Owners who have outstanding service charges will not be able to sell or rent out their property until all dues are cleared. This can severely limit any financial flexibility the owner may need.
Auction of the Property: If the dues remain unpaid after the legal process, the property may be sold through a public auction to recover the outstanding amounts.
To avoid these severe consequences, it’s essential for property owners to stay current on their service charge payments.
