Enforcement Powers Of Owners' Associations

In this article we briefly outline the enforcement powers of Owners' Associations described in Law No. 27 of 2007 on Ownership of Jointly Owned Properties in the Emirate of Dubai (the "Strata Law"), the Direction for General Regulation Concerning Jointly Owned Properties (the "General Regulation") and the Direction for Association Constitution ("Association Constitution"). What is the legal capacity of an Owners' Association? An Owners' Association (being an association constituted in accordance with Article 17 of the Strata Law) is a legal entity not for profit and has a separate legal existence from its members. It also has the right to sue in this capacity and to own movable assets. Every Owners' Association is subject to the provisions and terms of the Strata Law, any Master Community Declaration1, Jointly Owned Property Declaration2, Building Management Statement and the Association Constitution.3 An Owners' Association may, in its own name and on behalf of its members, sue others including other unit owners, occupiers and any other person occupying a Jointly Owned Property (as defined in the Strata Law) for breach of the Strata Law or the Association Constitution. The Owners' Association shall be represented before the Courts or other government authorities by its Manager.4 Creation of a Lien In terms of Article 25 of the Strata Law, the Owners' Association shall have a lien on every unit for unpaid service charges and any other obligations levied against the unit owner in accordance with the provisions of the Strata Law or the Association Constitution. The right shall exist even when ownership of the unit has been transferred to a new owner. If the unit owner does not pay his share of service charges or defaults on any of his obligations, the Manager may decide to institute legal action against the owner. The Manager will serve a 3 month notice on the owner through the Notary Public. On the expiry of the 3 month period, in the event the owner has not remedied the default or submitted its objection at court, the Manager's decision is enforceable by the Execution Judge of any Court. The owner may object during the 3 month period at Court, in which event execution will be withheld pending a decision by the Execution Judge on the owner's objection. What is the practical procedure for enforcement of a Lien? The Court procedures applicable to the enforcement of liens pursuant to Article 25 of the Strata Law is as far as we are aware...