In October 2025, the Rental Disputes Center (RDC) clarified an important principle: the obligation to pay service charges may transfer to the buyer before the official handover if the delay is caused by the buyer’s own payment defaults or contractual breaches.

If handover is delayed due to the buyer’s contractual breach, service charge liability may arise even before keys are issued.

This clarification has direct implications for off-plan buyers, investors, and property managers across Dubai.

How It Worked Before

Until recently, responsibility for service charges remained with the developer up to the actual physical handover of the property.

Buyers were not required to cover expenses related to common areas until keys were issued. In practice, this often worked in the buyer’s favor — even when projects were fully completed.

At the same time, conflicts were common. Developers continued to cover operational costs, while some buyers delayed payments without immediate financial consequences.

What Has Changed

If a project is completed but the buyer delays payments or otherwise breaches contractual obligations, service charges can now be transferred to the buyer before keys are issued and before the title deed is registered.

This position is based on Law No. 6 of 2019 on Jointly Owned Properties.

As a result, developers and property management companies are legally entitled to invoice buyers directly, even if the handover process is not finalized.

Advantages of the New Approach

Continuous funding of common areas is protected. Cleaning, security, pools, elevators, and shared facilities are no longer dependent on the developer absorbing costs indefinitely.

Responsible owners are protected as well. Expenses are not shifted onto buyers who meet their obligations on time.

For developers, this creates a practical enforcement tool against payment delays.

Risks and Practical Concerns

Buyers may face operational expenses before gaining physical access to their apartments.

Disputes can arise over fault: whether the delay was genuinely caused by the buyer or by the developer’s actions.

For investors, upfront costs increase before rental income becomes possible, affecting early cash flow projections.

Calculate Your Property Revenue

Get a quick estimate of your property's potential income

What Buyers Should Check Carefully

  • Payment schedules and deadlines. Even minor delays may trigger early service charge obligations.
  • Property management documentation. How charges are calculated, recorded, and when invoicing officially begins should be clearly defined.

Key Takeaway

Dubai has reinforced a clear principle: rights are transferred together with responsibilities.

If handover is delayed due to the buyer’s actions, service charges can start accruing even before keys are received. For investors and end-users alike, this makes contractual discipline and payment timelines more critical than ever.