Glossary / Property

Owners association

An owners association is the body of unit owners responsible for managing and maintaining the shared parts of a building, and it is the body that sets and collects the service charge.

It appoints the managing agent, approves the annual budget, and holds the reserve fund for major works such as chiller or lift replacement.

A well run association with a funded reserve is worth real money to an owner. An underfunded one means a special levy is somewhere in your future.

Where people get it wrong

Never reading the budget. It is the document that tells you what next year's service charge will be, and it is available before you buy.

Related terms

Service charge A service charge is the annual fee an apartment owner pays the owners association for maintaining shared parts of the building, quoted in Dubai as dirhams per square foot per year and levied whether or not the unit is occupied. No objection certificate A no objection certificate, or NOC, is a document from the developer confirming there are no outstanding service charges or breaches on a unit, and it is required before the Dubai Land Department will register a resale.

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