The Department of Land and Property in Dubai revealed that the number of housing units registered in the system “Malak” so far has reached more than 231 thousand housing units, as well as the number of management companies approved to 89 real estate companies, and recorded the number of bank accounts of common property properties operating under the mechanism Escrow accounts to 1191 accounts in 7 banks.
According to Dubai Land, 54,000 invoices were issued through the Malak system, and the total amount of service fees audited by the system in accordance with the new business system in cooperation with the accredited audit offices of RERA has exceeded 1.3 billion dirhams at present. The total amount approved through the system is expected to reach AED 4 billion in the next phase.
During the press conference held yesterday in Dubai and reviewed on the sidelines of its electronic system “Malak” with the definition of the new “common property law” to be implemented today, the service and maintenance fees in Dubai will be reduced by up to 15% by the end of 2020 To the positive effects of law and financial and field oversight. To be implemented by RERA, according to Al Khaleej.
Sultan Butti Bin Mejren, Director General, Dubai Land Department, said that the new Malak system will help to control the valuation of service fees and manage real estate projects through greater governance and transparency, but prices will ultimately depend on the market performance curve. .
He explained that the door of grievances has been opened in the department, so that cases can be filed in case any party of the contractual relationship in the real estate market sees the existence of exploitation in service fees, pointing out that the application of the law “ownership of common property”, the new will cancel the existence of exploitation by up To 100%.
He added that the joint ownership law, which will be implemented today, will reduce the service and maintenance fees in the emirate by up to 15% by the end of 2020, as planned by the department during the coming period.
Service Charge Index
Eng. Marwan Bin Ghalaita, CEO of RERA, said that Malak’s system gives the owner details of each fils of service costs, expecting transparency and governance to contribute to the decline in service fees over the coming period.
He pointed out that the number of registered units in the system amounted to 2311277 units, while the number of buildings registered 1240, and the number of management companies registered in the system to 89 real estate companies, and the number of certified auditors from “RERA” to 10. Also recorded the number of invoices issued from The system has 54 thousand invoices, and the number of bank accounts of the common property properties operating under the mechanism of escrow accounts to 1191 accounts, while the number of banks approved to 7.
The total amount of service fees audited by Malak according to the new work system in cooperation with the accredited audit offices of RERA is now more than AED 1.3 billion, with the organization expecting the total amount approved through the system to reach AED 4 billion in the current phase. Coming.
He pointed out that the electronic system “Malak” is free of paper, as owners can access the system and make the transfer through the system, expecting that all notifications and transaction fees for services through the system by the coming year 2020.
He pointed out that “RERA” launched more than a year ago a special indicator of service fees for any building in Dubai, so any investor can know the fees for services that will cost when buying property in any area and any building, pointing out that the institution noted in recent years the decline in the cost of fees Services as a result of companies seeking to reduce costs and adopt more effective techniques and means.
Ibn Ghalita explained that the financial and field control authorized by the law to RERA will be an effective factor towards the reduction of these fees, in the interest of the real estate investor, which is the main guarantee towards reducing these fees. Property management companies operating in the emirate to ensure the knowledge of the direction of each fils paid by the owner to the property management company, where this is done through a tight system, where all the invoices for these fees are checked and approved.
Ibn Ghalita stressed that the joint ownership law gave the RERA an advantage through financial supervision through the financial auditing and approval of the bills of real estate management companies after entering these bills to the auditor to ensure the benefit of the real estate investor.
He explained that the system “owners”, is the first of its kind in the world, an electronic system that will contribute to the implementation of the law well, pointing out that the system will help owners of real estate, jointly owned, in dealing with companies based on the management of this type of The system will provide a new and integrated system to control accounts related to service fees in these projects, based on financial accounts operating under the mechanism of the escrow account.
Intelligent systems
Judge Abdelkader Moussa, president of the Center for Rent Dispute Resolution, said the center is in the process of implementing intelligent systems to ensure quick solutions to common property disputes, noting that the new law will regulate the performance of property management companies and guarantee the rights of all parties in the real estate system with regard to Joint ownership including real estate management companies.
Moussa added that the center has completed six years since its establishment, and we have succeeded during the previous period in the completion of rental issues within 8 days on average, and today add a new competence to the center is disputes concerning the ownership of common property, pointing out that they have implemented a full technical system for these types of issues, In addition to the formation of administrative departments, pointing out that some cases related to common property, especially fees for services and the presence of specialized judges and management competent in the implementation of any such cases.
Regarding the nature of disputes regarding service fees, Moussa pointed out that they were within the jurisdiction of Dubai courts and moved under the new law to the center, where the most dispute disputes focus on the value of fees and complaint that the owners do not benefit from some services.
He spoke about some of the legal articles that allow the institution to play a supervisory role. Under Article 33 of the new law, RERA has the right to inspect the services provided by the management company or the developer, and may impose fines depending on the type of violation.
Moussa revealed that the urgent complaints or requests will be settled electronically before the end of this month in the same way as other rental complaints, thus making all the services provided by the center without papers, so that the printers will be canceled from the center.
The Chairman of the Center for Rent Dispute Resolution revealed that the Center is in the process of launching an automated system for registering tenants’ complaints in which the complaint is fully restricted and its fees paid through the system, to resolve the difficulties faced by customers in registering lawsuits and disputes with the landlord and his representative.
New indicator
Majid Al Marri, Executive Director of Real Estate Registration and Services at Dubai Land Department, said that the Land Department is working on a new property valuation project across the emirate, with the index expected to be launched in the first quarter of next year.
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