Service Charge Disputes in Dubai: 10 Crucial Legal Steps for Owners

Service charge disputes in Dubai are among the most common property-related disagreements faced by owners of apartments, villas and other units within jointly owned properties. Service charges help fund the management, operation, maintenance and repair of shared areas and facilities, but disagreements can arise over the amount charged, the services provided, approval procedures, transparency, budgets, arrears and responsibility for payment.

For property owners, investors and buyers, understanding how service charges are calculated, approved and challenged is important before withholding payment or escalating a dispute.

In Dubai, service charges for jointly owned properties operate within a regulatory framework involving the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA). The DLD provides a Service Charge Index through which owners can check approved service charges for eligible jointly owned properties.

This guide explains service charge disputes in Dubai, the most common causes of disagreement, how owners can check approved charges, what happens if charges remain unpaid, and which legal options may be available when an issue cannot be resolved.

What Are Service Charges in Dubai?

Service charges are annual financial charges collected from owners of units in jointly owned properties to cover the costs of managing, operating, maintaining and repairing common areas and facilities.

According to the Dubai Land Department, service charges can cover applicable management, maintenance and common-property expenses. The DLD Service Charge Index allows customers to inquire about approved service fees for jointly owned properties.

The exact amount is not simply determined by an owner, developer or management company at will. Applicable service charges are subject to the relevant regulatory approval and processes.

This distinction is important because a high service charge is not automatically unlawful. The relevant question may be whether the charge is properly approved, supported by the applicable budget and contracts, and consistent with the governing legal and regulatory framework.

For owners dealing with service charge disputes in Dubai, the first step should therefore be identifying exactly what has been charged and whether the amount can be verified through the applicable DLD systems.

Who Regulates Service Charges in Dubai?

Service charges for jointly owned properties fall within the regulatory framework administered through the Dubai Land Department and RERA.

The DLD provides a Service Charge Index that allows owners to inquire about approved service fees for jointly owned properties. The service can be accessed through the DLD website, Mollak and Dubai REST.

Dubai Law No. 6 of 2019 concerning Ownership of Jointly Owned Real Property is also an important part of the legal framework governing jointly owned properties in Dubai. Owners can review the official Dubai Law No. 6 of 2019 for the statutory framework. The law applies to jointly owned real property in Dubai and establishes the relevant framework involving DLD, RERA, owners and management entities.

The regulatory structure matters because service charge disputes in Dubai should generally be assessed against the applicable approval, project arrangements, ownership documents, management responsibilities and relevant law rather than based only on whether an owner considers the amount expensive.

For anyone involved in service charge disputes in Dubai, checking the regulatory record before making accusations or withholding payment can help establish the actual issue.

10 Common Causes of Service Charge Disputes in Dubai

Service charge disputes in Dubai can arise for different reasons. Some involve the amount charged, while others concern transparency, maintenance, budgets or responsibility for payment.

1. Excessive or Unexpected Service Charges

Owners may challenge charges when they believe the amount is significantly higher than expected or has increased without sufficient explanation.

A higher charge does not necessarily mean that the amount is invalid. Costs may change because of maintenance contracts, insurance, utilities, staffing, repairs, reserve requirements or other property-related expenses.

The important question is whether the amount has been properly determined and approved under the applicable framework.

2. Lack of Transparency

Another common issue is uncertainty about how the annual budget was calculated.

Owners may want to understand:

• What services are being provided?
• What contractors are being used?
• What maintenance costs have been incurred?
• How much has been allocated for insurance?
• Are reserve amounts included?
• Are there community or usage charges?
• Has the relevant budget been properly approved?

The DLD’s service-fee approval process requires supporting information including an annual budget, service-provider proposals, service contracts and an external financial audit report.

That does not mean every owner automatically receives every document on demand in every situation. Instead, owners should identify the applicable process and obtain appropriate information through the management and regulatory channels available to them.

3. Developer or Management Company Disagreements

Owners sometimes disagree with a developer or management company about responsibility for common-area expenses, management decisions or historical charges.

These disagreements can become particularly complicated where the property is newly completed, ownership has recently transferred, or handover has been delayed.

The parties should establish:

• the date ownership or liability arose;
• the relevant SPA and property documents;
• the approved service-charge information;
• the period for which charges are claimed;
• whether any amounts are arrears; and
• whether a specific contractual or regulatory rule applies.

4. Poor Maintenance Despite Charges

An owner may question why substantial service charges are being collected when common facilities appear poorly maintained.

Examples can include:

• damaged common areas;
• inadequate cleaning;
• malfunctioning facilities;
• poor landscaping;
• recurring lift problems;
• security concerns; or
• delayed repairs.

Poor service does not automatically mean that all service charges can be withheld.

Instead, the owner should document the problem and use the applicable complaint, management and regulatory channels. The DLD states that the management company is responsible for managing the jointly owned property, maintaining common facilities and receiving and resolving owners’ inquiries and complaints.

5. Reserve or Sinking-Fund Charges

Owners can also question reserve charges intended for major or future repairs.

Reserve requirements can be legitimate components of jointly owned property expenses. A dispute may arise where an owner does not understand the purpose of a reserve amount or believes it has not been handled in accordance with the applicable requirements.

The appropriate response is to verify the charge and supporting information rather than assuming that the reserve amount is automatically unlawful.

6. Incorrect Calculation or Property Information

Errors can occur when information relating to a unit, project, usage, budget year or applicable calculation is incorrect.

Owners should compare:

• title deed information;
• unit details;
• project information;
• approved service-charge information;
• relevant budget year; and
• invoices or payment requests.

The DLD Service Charge Index allows users to select the project, usage and year to view applicable information.

7. Disagreement Over Community or Usage Charges

Some properties involve charges connected with common facilities or broader development infrastructure.

Owners should identify the precise category of charge before disputing it because a service charge, usage charge, arrear or other property-related amount may have a different legal basis.

8. Charges After a Sale or Transfer

Disputes can also arise when a property changes ownership.

The parties may disagree over who is responsible for charges relating to a particular period.

The sale agreement, transfer date, payment records and applicable regulatory requirements should be reviewed before deciding who bears the liability.

9. Service Charges During Delayed Handover

Delayed handover can create difficult questions about service-charge responsibility.

In October 2025, the Rental Disputes Center published a decision concerning real-estate service fees and stated that, in the circumstances addressed by that decision, unit holders could remain responsible for service charges before formal possession where the delay in handover was attributable to the buyer.

This does not mean that every delayed-handover situation produces the same result. The specific facts, contractual arrangements and reason for the delay matter.

Owners involved in service charge disputes in Dubai should therefore obtain advice based on their particular documents and circumstances.

10. Accumulated Arrears and Enforcement

Service charge disputes in Dubai can become more serious when unpaid amounts accumulate.

The DLD Service Charge Index expressly distinguishes approved service-charge information from arrears.

The RDC also provides an execution service for claims associated with ownership of jointly owned real properties. Its published requirements include an enforcement writ and notification issued by the Mollak System.

Owners should therefore avoid allowing a disagreement to continue indefinitely without understanding the consequences of non-payment.

Can Owners Refuse to Pay Service Charges in Dubai?

Generally, an owner should not assume that simply disputing a service charge gives them a legal right to stop paying it.

This is one of the most important issues in service charge disputes in Dubai.

An owner who believes a charge is incorrect should first determine:

1. whether the charge is approved;
2. what period the charge relates to;
3. whether the amount is an arrear or current charge;
4. whether the charge relates to the owner’s unit or common facilities;
5. whether there is a calculation or administrative error;
6. what objection or complaint process applies; and
7. what consequences may follow from non-payment.

The RDC states that an execution on jointly owned real property can be filed after the owner has been notified of prescribed service charges through the Mollak system for the required period.

Accordingly, withholding payment without first obtaining appropriate legal advice can create additional exposure.

Where a charge genuinely appears incorrect, the safer approach is generally to document the objection, use the applicable dispute-resolution process and obtain professional advice about payment and procedural options.

For a broader understanding of property-related claims, see our property disputes in Dubai.

How Can Owners Check Approved Service Charges in Dubai?

For many service charge disputes in Dubai, checking the approved charge should be one of the first practical steps.

The Dubai Land Department provides a Service Charge Index for jointly owned properties. The system allows users to select the project, usage and relevant year and view the available approved information.

Owners can use the official Dubai Land Department Service Charge Index to compare the relevant approved charge with the amount being requested.

The DLD also provides a service for approval of service fees and utilization fees through the Mollak system. Its published requirements include the annual service budget, service-provider proposals, relevant contracts, utility information and an external financial audit report.

This information can help an owner distinguish between:

• an approved charge;
• an invoice or payment request;
• an arrear;
• a disputed calculation;
• a management complaint; and
• a broader legal dispute.

What Should You Do About Service Charge Disputes in Dubai If You Believe the Charge Is Wrong?

If you are dealing with service charge disputes in Dubai because you believe a charge is incorrect, avoid relying solely on verbal complaints.

A practical approach is to create a documentary record.

Step 1: Obtain the Details Behind the Service Charge Disputes in Dubai

Keep copies of:

• service-charge invoices;
• Mollak notifications;
• payment requests;
• title deed;
• SPA or purchase documents;
• previous service-charge statements;
• correspondence with the management company;
• maintenance complaints; and
• relevant payment receipts.

Step 2: Compare the Charge With the Official Information

Use the DLD Service Charge Index where applicable and compare the relevant project, usage and year.

Do not compare your bill only with another owner’s bill because different units, uses, projects and periods can have different characteristics.

Step 3: Ask for Clarification in Writing

If there is a discrepancy, ask the management company or relevant party to explain the calculation or basis for the charge.

Written communication creates a clearer record than telephone discussions.

Step 4: Identify the Legal Issue

Not every disagreement is a legal claim.

The issue might be:

• an administrative error;
• a billing problem;
• a management complaint;
• an approved-charge dispute;
• an ownership liability issue;
• a contractual disagreement; or
• a formal jointly owned property dispute.

Identifying the correct category helps determine the appropriate next step.

Step 5: Consider Legal Advice

Where the amount is substantial, the dispute involves accumulated arrears, enforcement action, developer liability, ownership questions or potential litigation, obtaining advice from a Dubai property lawyer can help you understand the available options before the dispute escalates.

If the issue forms part of a wider transaction, our legal tips for property deals in Dubai can also help with the broader due-diligence process.

Legal Channels for Resolving Service Charge Disputes in Dubai

There is no single procedure that applies to every service charge disputes in Dubai matter because the appropriate route depends on the facts, the parties involved and the remedy being sought.

1. Management Company or Owners’ Association

Some disputes can initially be addressed through the property’s management structure.

This may be appropriate where the issue involves:

• maintenance;
• billing;
• communication;
• common facilities;
• service quality; or
• clarification of a charge.

The DLD identifies the management company as responsible for managing the jointly owned property, maintaining common facilities and addressing owners’ inquiries and complaints.

Owners should keep written records of complaints and responses.

2. Dubai Land Department and RERA Processes

Where the issue concerns service-charge approval, regulatory information or the administration of jointly owned property, DLD/RERA processes may be relevant.

The DLD provides dedicated services for service-fee approval and the Service Charge Index.

The official Dubai Land Department website provides access to relevant property services and information.

3. Rental Disputes Center

The Rental Disputes Center is not limited to ordinary landlord-tenant disputes. Its current services include proceedings involving ownership of jointly owned real properties.

The RDC provides a specific first-instance service for claims involving ownership of jointly owned real properties.

It also provides an execution service for jointly owned real properties that addresses enforcement of monetary claims associated with such ownership.

4. Settlement or Negotiation

Litigation is not necessarily the first or only option.

Depending on the dispute, negotiation or settlement may resolve issues involving:

• disputed invoices;
• responsibility for charges;
• historical arrears;
• payment arrangements;
• maintenance concerns; or
• documentation.

The best approach depends on the facts and the parties’ legal positions.

5. Court or Other Legal Proceedings

Some disputes may require formal proceedings where the parties cannot reach a resolution through the applicable administrative or settlement channels.

Before starting proceedings, owners should understand:

• jurisdiction;
• limitation or procedural requirements where applicable;
• evidence;
• potential fees;
• requested remedies;
• translation requirements; and
• enforcement considerations.

The RDC’s published procedures state that documents must be submitted in or legally translated into Arabic for its proceedings.

What Rights Do Owners Have in Service Charge Disputes in Dubai?

Owners’ rights depend on the property structure, applicable law, contractual documents and regulatory framework.

Depending on the circumstances, an owner may need to address issues such as:

• whether the charge has been properly approved;
• whether the amount relates to the correct unit and period;
• whether the management company has performed its responsibilities;
• whether common facilities are being maintained appropriately;
• whether the owner has received proper payment information;
• whether an amount has already been paid;
• whether the claimed amount includes arrears; and
• whether enforcement action has been initiated.

The existence of a disagreement does not automatically suspend an owner’s payment obligations.

For this reason, owners should distinguish between the right to challenge a charge and the separate question of whether payment can lawfully be withheld.

Why Legal Advice Can Matter in Service Charge Disputes in Dubai

Service charge disputes in Dubai can appear straightforward but become complicated when several documents and parties are involved.

A property lawyer may help with:

• reviewing the service-charge documentation;
• identifying contractual obligations;
• assessing correspondence and notices;
• checking ownership and transfer records;
• evaluating the legal basis of a claim;
• communicating with the other parties;
• negotiating a settlement;
• preparing a formal response;
• assessing potential proceedings; and
• representing an owner where appropriate.

Legal advice is particularly important where the dispute involves a large outstanding balance, an enforcement notice, a developer, a management company, delayed handover or a disagreement over ownership responsibility.

For more information about the legal process and representation, see what to expect from a real estate law firm in Dubai.

Common Mistakes Owners Make in Service Charge Disputes in Dubai

Several mistakes can make service charge disputes more difficult to resolve.

Ignoring Notices

An owner should not ignore payment notices, Mollak notifications or formal correspondence simply because the charge is disputed.

Assuming a High Charge Is Automatically Illegal

A high amount should be investigated, but price alone does not establish illegality.

Refusing Payment Without Advice

Stopping payment can potentially create arrears and enforcement issues.

Relying on Another Owner’s Invoice

Another unit may have different characteristics, usage, area, budget or liability.

Making Verbal Complaints Only

Written records are generally more useful when a dispute later needs to be reviewed.

Waiting Until Enforcement

If a dispute is genuine, it is generally better to understand the issue and available remedies before an enforcement process develops.

Using Outdated Legal Information

Dubai’s property regulatory environment develops over time. Owners should rely on current DLD, RERA, RDC and Dubai legislation information when assessing their position.

How to Prevent Service Charge Disputes in Dubai

Prevention is often easier than resolving a dispute after substantial arrears have accumulated.

Property owners can reduce the risk of service charge disputes in Dubai by:

1. checking service charges before buying;
2. reviewing the property’s historical charges where available;
3. understanding the SPA and ownership documents;
4. checking applicable DLD information;
5. keeping payment records;
6. responding promptly to notices;
7. documenting maintenance complaints;
8. retaining management correspondence;
9. verifying the relevant budget year; and
10. obtaining legal advice when a substantial issue arises.

Property buyers should also consider service charges as part of the overall cost of property ownership rather than focusing only on the purchase price.

Service Charge Disputes When Buying or Selling Property

Service charge disputes in Dubai can become particularly important during a property sale.

Before completing a transaction, buyers and sellers should establish:

• whether service charges are fully paid;
• whether arrears exist;
• whether there are outstanding notices;
• whether any dispute has been raised;
• whether the management company has issued relevant clearance information; and
• which party is responsible for amounts relating to different periods.

The sale agreement should clearly address the allocation of outstanding amounts where appropriate.

A buyer should not assume that the existence of a sale automatically eliminates historical service-charge issues.

Similarly, a seller should not assume that every charge automatically becomes the buyer’s responsibility simply because the transfer takes place.

The actual contractual and regulatory position should be checked.

Service Charges and Property Due Diligence

Service charges should be considered alongside other property due-diligence issues.

Before purchasing a Dubai property, investors should investigate:

• title and ownership;
• developer and project information;
• outstanding charges;
• service-charge history where available;
• mortgage or financing issues;
• NOCs and transfer requirements;
• off-plan registration where applicable;
• SPA terms;
• handover status; and
• existing disputes.

Our guide on how to check the status of a real estate project in Dubai provides additional guidance for buyers assessing project status.

Where a property has significant outstanding charges or an existing dispute, legal review before completion can help identify issues that may otherwise become more difficult to resolve later.

What Documents Should You Keep for Service Charge Disputes in Dubai?

If you are dealing with service charge disputes in Dubai, maintain a complete evidence file.

Useful documents can include:

• title deed;
• SPA;
• sale agreement;
• service-charge invoices;
• Mollak notifications;
• DLD Service Charge Index information;
• payment receipts;
• bank statements;
• management correspondence;
• maintenance complaints;
• notices;
• developer correspondence;
• NOCs;
• handover documents;
• ownership-transfer documents; and
• legal correspondence.

Keep documents in chronological order where possible.

A clear timeline can make it easier for a lawyer, management company, regulator or adjudicating body to understand what happened.

When Should You Speak to a Property Lawyer About Service Charge Disputes in Dubai?

Legal advice can be useful at different stages.

Before Buying

A lawyer can review service-charge obligations as part of wider property due diligence.

When a Large Charge Appears

If a new or unexpected charge is substantial, obtain the supporting information before taking action.

When You Receive a Formal Notice

A formal notice may require a prompt response.

When Arrears Have Accumulated

Once significant arrears exist, the dispute may involve payment, enforcement and procedural considerations.

When the Developer Is Involved

Developer-related disputes may involve additional contractual and regulatory issues.

Before Litigation

Legal advice before filing or defending proceedings can help clarify the evidence, jurisdiction, claims and potential remedies.

If you need professional assistance with a Dubai property dispute, you can contact our Dubai real estate legal team for an assessment of your matter.

Frequently Asked Questions About Service Charge Disputes in Dubai

What are service charges in Dubai?

Service charges are financial charges collected from owners of units in jointly owned properties for applicable management, operation, maintenance and repair expenses relating to common property and facilities.

How can I check my Dubai property service charge?

You can use the Dubai Land Department’s Service Charge Index to check approved service-fee information for applicable jointly owned properties. The system allows users to select the project, usage and year.

Can I refuse to pay a service charge if I disagree with it?

You should not assume that a dispute automatically gives you the right to stop payment. Unpaid charges can potentially lead to arrears and enforcement proceedings. Obtain appropriate legal advice before withholding payment.

Who approves service charges in Dubai?

Service charges for jointly owned properties operate within the DLD/RERA regulatory framework. The DLD provides a formal service for approval of service and utilization charges through the Mollak system.

Can service charges be disputed?

Potentially, depending on the circumstances. An owner may need to investigate whether the charge was properly approved, correctly calculated and imposed for the relevant property, period and purpose.

Can the Rental Disputes Center handle jointly owned property disputes?

Yes. The RDC provides services for disputes involving ownership of jointly owned real properties, including first-instance proceedings and execution procedures.

What happens if I do not pay service charges?

Unpaid charges can become arrears and may lead to further action. The RDC states that an execution on jointly owned real property can be filed after the owner has been notified of prescribed service charges through the Mollak system for the required period.

Are service charges payable before handover?

The answer can depend on the circumstances. In a published 2025 decision, the RDC described a legal principle under which unit holders could remain responsible for service charges before formal possession where the handover delay was attributable to the buyer. The facts of the particular case remain important.

Can a property lawyer help with service charge disputes?

A Dubai property lawyer can review the relevant documents, assess the legal and contractual issues, communicate with the other parties, negotiate where appropriate and advise on potential proceedings or other remedies.

Final Takeaway

Service charge disputes in Dubai should be approached as legal and financial issues rather than simply as disagreements over the amount of an invoice. A documented, evidence-based approach can help an owner identify the real issue before choosing a remedy.

The key steps are to verify the charge, check the applicable DLD information, review the underlying documents, keep written records, respond to notices and understand the consequences of non-payment before taking action.

Where the dispute involves significant arrears, enforcement, a developer, a management company, delayed handover or a contested ownership obligation, professional legal advice can help clarify the available options.

If you need help reviewing documents, assessing a disputed charge or understanding your legal options, contact our Dubai real estate legal team.