Real Estate developers pay on behalf of residents in the UAE

Published January 11th, 2012 - 11:43 GMT
The utility facilities cannot be disconnected if the residents have not paid the service charge and going to court is too costly, especially when dealing with a small amount
The utility facilities cannot be disconnected if the residents have not paid the service charge and going to court is too costly, especially when dealing with a small amount

There is a continuously everlasting friction of complaints and dissatisfaction between tenants in the UAE and real estate developers and authorities; but there is a light at the end of the tunnel, proving that not all developers are constantly drafting plans to milk the residents’ wallets, but in fact that some do pay out of their own pocket to prevent any inconvenience to their clients.

ETA Star Properties is one of those developers that do consider human loyalty more precious than financial solvency. The General Manager, Mohammed Ali, told local media platform Emirates 247 that at times when authorities like DEWA and Empower request payments from the residents, the money often comes out of their own pocket. Naturally, it is collected from the resident at a later date but initially the developer pays it to prevent any problems. He adds: “We had to pay on some occasions from our own pocket or else everyone would have suffered. But we will collect our dues once the OA is formed.”

According to developers, government authorities generally approach them for payment since the Interim Owners’ Associations are not legal entities. The utility facilities cannot be disconnected if the residents have not paid the service charge and going to court is too costly, especially when dealing with a small amount.


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