KHALEEJ TIMES, Tuesday, Nov 19, 2019 | Rabi Al Awwal 22, 1441
Mollak to record Dh4b in real estate service fees
Emirates:
Dubai developers are no longer
allowed to collect service charges from property owners as a new law comes into
effect removing developers from setting charges or collecting funds. Developers
have only a month left to start invoicing all service charges on ready
properties through the Dubai Land Department's Mollak system, which was launched
by the Dubai Land Department.
Mollak, an electronic platform
for tenants and home owners to pay service fees, is on track to record Dh4
billion towards service fees. The platform has so far registered 231,277 real
estate units, 1,240 properties, and 89 real estate companies. "At present, the
total amount of service fees audited in the system exceed Dh1.3 billion,"
according to DLD.
The introduction of Mollak
ensures that henceforth developers have to invoice service charges on properties
only through the new electronics payment platform. The initiative is in line
with the Common Properties Law, No. 6 of 2019, which comes into effect on
Tuesday.
Mollak, which has been designed
to be more fair and transparent, comprises an online automation process that
requires the developer and the joint ownership property management, through its
manager, to provide accurate information regarding the services provided in
joint ownership properties so that Real Estate Regulatory Agency (Rera) can
approve the service fees.
The system also assists joint
ownership property owners and ascertains smooth and easy operations with
property managers as well as provides a new and integrated structure to monitor
accounts related to service charges in these projects by relying on the
financial accounts that operate as per to the mechanism of the escrow account,
DLD said.
Sultan Butti bin Mejren,
Director General of DLD, addressing a press conference held to highlight the
'Joint Real Estate Ownership Law in Dubai,' said the new law would contribute to
enhancing transparency and consolidating global leadership of Dubai's real
estate sector. "We are pleased to announce the Mollak system, which will make
common service charges smooth and easy to pay."
Marwan bin Ghalita, CEO of Rera, highlighting
the updates, development, transparency, and confidence that this law will bring
to the Dubai real estate market, said the law would ensure better services to
gain investor confidence in the Dubai real estate market. "The law covers all
common grounds, property management companies, and developers. On-ground
implementation has already begun, and the team is fully prepared to implement
and act accordingly," Ghalita said.
Judge Abdulqader Mousa,
Chairman of the Rental Disputes Center, said the centre added a new mandate,
namely disputes relating to common real estate issues, in cooperation with Rera
and Emirates Real Estate Solutions.
Majid Al Marri, CEO of the
Registration and Real Estate Services sector at DLD, said that the Real Estate
Registration and Services Sector would focus its attention on the real estate
register of common property, including all land owned by developers of joint
properties, such as parking spaces and open spaces, pointing out that the law
will resolve any disputes concerning these types of properties, for easy
segregation and determination of responsibilities and duties. Khalifa Al Suwaidi,
CEO of Emirates Real Estate Solutions, said they are working closely with DLD
and had developed several applications to enhance technology in the real estate
sector.