What is Article (38) Non-performance of Management under the Law no 6 of 2019 on Ownership of Jointly Owned Property in the Emirate of Dubai?

(a) If the Agency sees that the Management Company is incompetent, inefficient or

unable to manage and maintain the Common Areas of the third category of real

estate projects provided for in paragraph (a) of Article (18) of this Law, the Agency

shall appoint an alternative Management Company to manage the Jointly Owned

Property, provided that the Agency shall follow the following procedures:

 

(1) Informing the Owners’ Committee about the violations committed by the

Management Company and requesting its opinion thereon;

 

(2) Issue a written warning to the Management Company indicating the errors

and negative practices committed by it in the management, operation,

maintenance and repair of the Common Areas, and the Management

Company may respond to this written warning within fourteen (14) days

from the date of being notified thereof;

 

(3) Appointing a legal auditing office to audit the Service Charge account, verify

the Management Company’s compliance with the Service Charge budget

approved by the Agency; and

 

(4) Giving the Management Company a time limit to hand over the management

of the Jointly Owned Property to the alternative Management Company

within a period not exceeding thirty (30) days from the date of the issuance

of the Agency's decision to appoint the alternate Management Company.

 

(b) If the replaced Management Company’s actions result in damage to any part of the

Jointly Owned Property or the Common Areas, the value of repairing such damage

shall be charged to the Management Company, provided that such value is

deducted from the bank guarantee of this company, referred to in paragraph (a) of

Article (36) of this Law.

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