Homeowners greet strata with caution

The introduction of a property law regarded as vital to the industry has prompted cautious enthusiasm among some homeowners in Dubai after years of promises and one false start. After more than a year of deliberation between property officials and experts from around the world, the "strata law" was proposed in 2007 to more clearly define the rights and duties of owners and developers. However, regulations required to enforce it were not introduced at the same time, leaving homeowners and companies alike in legal limbo.

That uncertainty may be coming to an end. The Dubai Land Department said on Monday that details of enforcement guidelines had been released. What they consist of and how they will be enforced are still unclear because officials have yet to disclose details. Some residents said it was likely to be a step in the right direction. "It's not entirely clear whether the new law will favour homeowners or if it gives developers the upper hand," said Marco Scalet, who owns an apartment in the Dubai Marina. "Irrespective of where the law falls, it will give clarity to a situation which is very murky.

"It will allow resolution over a whole variety of problems. At least it will represent an end in sight." The era he and many others hope will end is one in which property developers have almost complete control over fees. It is an era in which owners' fees have suddenly doubled in some cases without consultation. Property developers often appoint companies they already own to maintain the communities they build, a phenomenon that has long been criticised as a conflict of interest. Informal homeowners organisations have protested against the situation on numerous occasions, decrying it as virtual taxation. They have had little success.

Last September, a group in Discovery Gardens, which has some of the highest fees in Dubai, petitioned the offices of Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai. Recently, owners such as Mr Scalet have been quietly holding their own homeowners association elections with the consent of Dubai's Real Estate Regulatory Agency (RERA). "What has actually happened is that RERA has been twisting the developer's arm, and those of other developers, and said that you had to allow the formation of these groups to prepare for when the law is finally passed," said Mr Scalet, who was elected as a building representative three weeks ago.

Not everyone, though, is as optimistic. "They've been talking about this for, what, four years now? It's been a long time coming," said Leila Nava, who paid about Dh15,000 (US$4,080) in maintenance fees last year for her Dh4 million four-bedroom villa in Arabian Ranches. While that amount was Dh3,000 lower than the previous payment, she and her husband were still not sure what they were paying for. They have never received a detailed breakdown of their fees.

"If we knew where the money was going, we'd feel more comfortable paying it," she said. Homeowners associations would be useful "if they could explain this to us", she said. @Email:[e-mail]