It is the law of nature that with the passage of time the value of most things degrades and property is not an exception. Rising pollution levels and climatic conditions such as: heat and rainfall are also playing a key role in minimizing the life-cycle of a building. Thus, it is widely important for real estate developers as well as homeowners to ensure the property is well-managed to maintain its value. This creates an urge to hire an Owners’ association (OA) firm to manage your property to ensure it remains at peak performance and increases asset lifecycle.
What is an Owner’s Committee?
An owner’s committee consists of a group of individuals who act as the elected representatives of the property owners. As per Law No. (6) of 2019 Concerning Ownership of Jointly Owned Real Property in the Emirate of Dubai, concerning the ownership of the jointly owned real estate in the Emirate of Dubai (the “JORE Law“), Owner’s Committees’ are responsible for overseeing the interests of the jointly owned property (JOP).
Appointment and Eligibility
The Real Estate Regulatory Agency or RERA oversees the nomination of the Owner’s Committee Members for each JOP with up to nine owners as committee members who act as representatives for all the owners in the building or community. Each member has one vote while voting on the decisions of the Owners’ Committee. OC members come in odd numbers to ensure fair voting.
According to Article 22(c) of the New JOP Law, to become a member of the Owners’ Committee, an owner must have a full legal capacity and should be a resident of the project. He/she must have good conduct and have paid all of the service charges owing in respect of its unit. The owner must regularly attend and actively participate in the meetings of the Owners’ Committee. If the member of the Owners’ Committee fails to meet the criteria, he/she will not be eligible to be on the Owners’ Committee and the membership may be revoked by RERA. The New JOP Law directs the Owners’ Committee to meet on a quarterly basis with the first meeting to be held within the month from the date of formation.
As per the law, the developer can also be a part of the Owner’s Committee provided he owns unsold units in the project subject to RERA’s approval.
Why Should you have an Owner’s Committee?
The Owners’ Committee plays a pivotal role in ensuring the highest standards of excellence in the maintenance and management of the building or community to drive the utmost satisfaction of the residents and owners.
Here are the top 5 ways Owners’ Committee Adds Value to a Community
The owner’s committee offers recommendations to the Managing Agent on the best ways to manage and operate a building and ensure timely maintenance and upkeep of the common areas to optimize the value of the building. The owner’s committee is also responsible for reviewing the annual maintenance budgets of the JOP and provide their valuable suggestions.
2. Effective Complaint Management to Boost Resident’s Experience
The Owners’ Committee plays a key role in addressing the resident’s grievances by professionally handling the complaints in the JOP to the managing body. In case the managing body is unable to resolve the complaint within 14 days of being notified, the owner’s committee submits it to RERA. Thus, they assist in maintaining residents’ happiness.
3. Oversight and Compliance
The owners’ committee is also responsible for notifying the Managing Body or RERA of any defects or imperfections in the structural parts of the JOP or any gap in the jointly owned areas which requires immediate attention. Owners’ committee liaison with the management company to maintain utmost compliance with environmental laws and government guidelines pertaining to the maintenance of the JOP.
4. Appointment & Replacement of the Managing Company/Agent
The owners’ committee plays an important role in the selection, and appointment of the Managing Agent. In case the Managing Agent’s performance is not in line with the expectations of owners or doesn’t meet a set standard benchmark, the Owners’ committee can submit a request for the replacement of the Managing Company to RERA.
The key questions asked by the Owners’ Committee during the replacement process and prior to appointment:
Q1. Can you resolve the biggest issues faced by the Owners’ Committee?
Q2. How can you reduce the annual service charges?
Q3. What are the actions taken against the owners for non-payment of service charges?
Q4. What differentiates you from other owners association management companies?
Q5. How can you add value to the building?
Q6. How can you enhance the Owners’ / Tenants’ experience?
The role of the Owners’ committee is crucial in the process of overseeing the reports and verifying the work being carried out by the Owners’ Association Management (OAM) company as initially promised. They are the cornerstone in ensuring the work is being done in line with the standards to ensure utmost resident delight.
Top 5 ways Owner’s Committee adds value to a community are –
- Recommending the best ways to manage and operate a building to the Managing Agent
- Complaint Management to Boost Resident’s Experience
- Liaisoning with the management company to maintain utmost compliance with environmental laws and government guidelines
- Appointment & Replacement of the Managing Agent
- Overseeing the reports and verifying the work being carried out by the Owners’ Association Management (OAM) company