Since its inception, Dubai Land Development (DLD) has been regulating policies and strategies to bring Dubai’s real estate sector to the forefront. So far, its regulatory arm, Real Estate Regulatory Agency (RERA), has implemented many policies to serve the interests of investors and developers. Recently, it has launched a web-based payment system called Mollak Dubai to effectively manage jointly-owned properties in the city.
What is Mollak Dubai?
Mollak is an online service system that ensures transparency for joint property ownership in real estate. Unit owners can pay service charges directly into this portal to avoid any chances of impending conflicts or inconvenience. The primary aim of Mollak is to create transparency in owners’ associations, enable registration of maintenance companies and maintain a track of their escrow accounts and service charges.
How does Mollak work?
The Mollak registration process is pretty simple. To initiate the process, co-owners need to follow a number of steps, which are as follows:
- Management companies have to comply with the registration requirements to enrol their organisation and key managerial staff into the system.
- Once a company is registered, every project that the company manages will be registered as an individual ‘property group’, provided they comply with all the requirements.
- Further, an online agreement will be signed to assign the management of the community.
- Companies will need to make a regulated bank account approved by DLD for the payment of service charges.
- The management companies will set a budget for each property group and submit it to Mollak so it can be reviewed by an audit firm.
- After a review, the audit firm will submit it to DLD for final approval on Mollak.
- Once approved, Mollak shall send an approval notice for the full budget period to owners.
- Owners will be able to pay service charges through various online payment options including Noqoodi.
Key Features of Mollak System RERA
Mollak has plenty of features which include:
- It lends support to co-owned property owners to deal with their project managers.
- It caters to the request of open regulated account for the community.
- It sends quarterly invoices to the registered owners.
- It supports various payment gateways.
Outcomes of Mollak System
As a result of Mollak’s smooth and easy payment securing method, 88 management companies, 1212 real estate projects and 200,000 units have already been registered and approved. Moreover, seven banks have consented to act as account trustees whereas, eight reputed financial auditors have been registered.
Mollak System has captured the attention of some of the best banks in Dubai including Al Mashreq, Emirates NBD, UBL, Commercial Bank of Dubai etc.
Rules and Regulations by Dubai Land Department for Joint Property Owners
Dubai Land Department has created a number of rules and regulations that are necessary for jointly-owned property owners to know. Primarily, a declaration/contract is required to share the profit of a property with a co-owner so some rules pertaining to this declaration are as follows:
- The declaration is required for each part of land whether it’s a plot comprising a building or part of a building
- Declaration for a plot can only be registered if it is mentioned in the list of RERA- approved list of jointly-owned units
- Declaration for leasehold or freehold interest is valid for no more than 99 years
Mollak is one of those real estate initiatives that took place, to support the initiatives outlined in the letter of His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE. In the letter, some new real estate laws for jointly owned property in Dubai were introduced that led to these newly-integrated systems.
The government is proactive in ensuring legal protection for both buyers and renters in the city. Along with initiatives such as the Mollak system, DLD has also introduced concepts like the Ejari to protect tenants. Take a look at the Laws section on the MyBayut blog to know more about rules and regulations which have been conceptualised to protect all stakeholders in the UAE real estate market.