Q. What is an Owners Association?
A: An ‘Owners Association’ describes all owners collectively within a jointly owned property. It is legally formed upon registration at the Jointly Owned Property Declaration and the first sale of a unit within a jointly owned property and upon being licensed by RERA. An Owners Association is a legal entity, which can sue and be sued. The primary role of an Owners Association is to manage, operate and maintain the common property and facilities within their jointly owned property, whether it be of residential, retail or commercial use.
Q. What are the duties of the Owners Association?
A. The Owners Association is responsible for the management and operation of the Common Areas, as well as the maintenance and repair of those areas. It is also their responsibility to ensure community rules are being adhered to by residents, to ensure harmony within their community.
The Owners Association must appoint a General Manager and may delegate all or same of its powers to a person or company. The General Manager offers an administrative, secretarial and financial service to the Owners Association, in addition to being on hand to offer advice in accordance with the relevant laws.
Each unit owner has to pay the Owners Association a share of the annual service fee to cover the cost of maintenance repair and management of the common areas. In addition, they must also pay a service charge to the Reserve Fund for the provision of funds for the replacement of capital assets on time.
In addition, the Developer has to pay a share with respect to unsold Units or those designated for future development.
Q. What is the service charge fee?
A. A fee paid for the cost of the maintenance of the common areas, including building insurance, utility services eg. DEWA(Water & Electricity), common area chilled water charges, administration of the Owners Association, including recovery of service fees, management of the bank accounts and payment of creditors. A separate service charge is also payable to the Reserve Fund.
Q. What is generally covered under the common property insurance?
A. Generally common property insurance covers the replacement and reinstatement of:
- a jointly owned property that contains a Unit or part of a Unit
- any improvements needed to the common areas
It does not include the contents and construction improvement completed by an owner within a unit.
It is the Owners Association responsibility to procure insurance against liability for damages for bodily injury or damage to property for itself, the Unit Owners and Occupiers.
Q. How is the service charge fee paid?
A. Maintenance service fees, otherwise known as service charges, are generally paid annually in advance, however they may be paid quarterly also, depending on the preference of the Owners Association. Service charges can be paid via cheque or electronic transfer.
Q. What is the fee for providing the administration service of the Owners Association?
A. The fee charged is part of the annual maintenance service fee and is generally a percentage of the total annual administration expenditure. It can vary from property to property.
Q. Can owners contract out of the annual service fees?
A. A Unit Owner may not relinquish his share in the common areas in order to avoid paying the annual service fee. It is a requirement of each Unit Owner to pay the Owners Association his share of the annual service fee to cover the cost of maintenance, repair, operation and management of the Common Areas.
Q. Who is BCS Strata Management Services?
A. BCS Strata Management services is a joint venture created by a partnership between National Bonds and (PICA) Prudential Investment Company of Australia. BCS Strata Management services will provide the best of Strata Management services to developers, home owners and tenants in the UAE, and other regional markets.
Q. Who is PICA?
A. PICA (Prudential Investment Company) is a financial services company focused on the property services Industry. Established over 50 years ago, the company is a market leader in the Strata Management industry. PICA offers customers Strata Management/Owners Association services, Financial Services, and Facilities Management products and services.
Q. Who is Body Corporate Services?
A. BCS is a PICA subsidiary headquartered in Sydney, Australia. Established in 1972, BCS is the seventh largest Strata Body Corporate Management Company in the world. BCS portfolio management includes residential, commercial, resort and mixed use developments. BCS is the largest strata management company in Australia managing over 135,000 apartments & villas.
Q. Who is National Bonds Corporation?
A. National Bonds Corporation is a private shareholding Dubai-based entity that was launched in March 2006. The government of Dubai holds a 50% ownership in the company with the rest jointly held by Dubai Bank, Dubai Holding and Emaar Properties. National Bonds Corporation is Shari’a compliant, with a dedicated Shari’a Board to oversee all financial aspects including product-related operations and investments.
Since its launch in 2006, National Bonds has come up with various successful initiatives in community development. In December 2006, it launched “Skycourts”, the elegant and affordable freehold residential community in the heart of Dubailand Residence Complex. In 2006, National Bonds Corporation launched ‘National Properties’, a wholly owned, full-service real estate subsidiary that offers distinctive homes and lifestyle options to the multinational UAE community. They also launched ‘Madaares PJSC’, an initiative aimed at raising quality standards in the region’s education sector. Madaares has acquired Taaleem and its associate Beacon Education, a leading provider of high-end primary and secondary education in the Gulf region consolidate its position in the fast-growing education sector |
