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Service Charges

1. What are Service Charges?

Annual Service Charges are collected by the Owner's Association for the administration and management of the common areas of the jointly owned property, and for the building insurance.

Annual Service Charges are based on an annual budget for the Jointly Owned Property prepared by the Board and the Owner's Association Manager, and approved at the Owner's Annual General Assembly. Each owner will pay their share of the Service Charges in accordance with their Unit Entitlement as set out in the Jointly Owned Property Declaration.

2. How do I Pay my Service Charges?

There are several options for making your Service Charge payments.

1. Log on to your building MyCommunity web portal and make easy convenient payments on line. This can be done by electronic transfer payment or increasingly by credit card. More and more communities are now being offered the NOVUS credit card facility for payment of their service charges. Credit card facilities are available for your building if the option comes up when you log onto your buildings MyCommunity web portal.

2. If you wish to pay in cash, you can:

  • Pay by direct deposit or telegraphic transfer to the bank account shown on your service charge invoice; or
  • Deliver the cash to our Customer Service Centre located in Al Barsha. Download a Map to the Novus office here.

If you wish to pay by Cheque (AED only), make your cheque payable to the payee shown on your Invoice. You can deliver the chequein one of the following ways:

  • Drop it into the NOVUS Collection Box in the lobby of your building
  • Deposit the cheque directly into the Owners Association bank account
  • Mail it to this address :
  • Attn: Community Manager Novus Community Management
    PO Box 28147 CPO,
    Dubai, United Arab Emirates

IMPORTANT:

  • Always be sure you include your Unit Number as a reference.
  • Please allow sufficient time for your cheque to clear prior to the payment due date
  • An administration fee of AED 100 will be charged in relation to dishonoured or returned cheques
  • Both sender and receiver bank transfer fees must be met by the customer
  • For any assistance with your service charge payments
    Call 800-NOVUS (66887) or email info@novuscommunities.com

3. What happens if Service Charges are not paid ?

All Owners are responsible for the payment of Service Charges on or before the date shown as the due date on the Invoice raised by the Association Manager. The following are the steps that are taken by and Owners Association in the event that Service Charges are not paid.

1.1. INVOICING

Invoices will be prepared and issued not less than 28 days prior to the Due Date.

The Association Manager will issue a maximum of 2 further Reminder Notices, each accompanied by a statement of account.

1.2. CAUTION NOTICE

The 3rd Reminder Notice issued by the Association Manager is the final notice, and will be accompanied by a Caution Notice. The Caution Notice is a formal warning to the Owner that further delay in payment will result in the Owners Association Board declaring the account a "Late Account", and instructing the Association Manager to :

  • Implement these collections procedures;
  • Withdraw services and access to applicable leisure facilities and common areas of the building as defined in the Community Rules;
  • Impose the approved penalty charges;
  • Initiate debt recovery or other legal action to recover the unpaid service charges as prescribed in the regulations, at the cost of the owner;
  • Issue a Notice to the tenant of the Owner advising that these actions will be taken; and
  • Report the breach of the JOP Law 27 of 2007 to the Real Estate Regulatory Authority.

1.3. LATE ACCOUNT

Accounts which remain unpaid for 60 days after the due date will be deemed "Late". Late Accounts will incur Late Payment Feesof :

  • AED 600.00 in a one off Late Collection Charge;
  • Penalty charges of 1% per month (12% p.a.) backdated to the Due Date;
  • All costs of collection including but not limited to the fees of external debt collection agencies, penalty fees, returned cheque fees, and all legal and other administrative costs incurred in the collections process.

1.4. DEFAULT ACCOUNTS

Late Accounts which are not rectified within 14 days, will become Default Accounts. In the event of an account becoming a defaulting account, the Owners Association Board will :

1) Issue a formal Notice of Default to the Owner and provide a copy to the Real Estate Regulatory Authority of the Land Department. The Owners Association Manager will provide with this letter :

  • Copies of the relevant sections of the JOPD and Community Rules;
  • Copies of all correspondence with the Owner, including the Service Charge invoices, Reminder Notices and evidence of their receipt in accordance with the Jointly Owned Property Law.

2) Request the Dubai Land Department to refer the matter to the Land Department JOP Committee / courts notifying them that the property Owner is in default, and instigate the legal remedies available to the Association under the Jointly Owned Property Law and Directions.

3) Enter the Owner on the defaulting land owners register held at the Land Department.

1.5. APPEALS PROCESS

prior to the Owners Association taking action to declare a Default Account and instigate Debt Collection, Owners are able to appeal to the Owners Association Board or a sub Committee of the Board to seek a review of their case. At the discretion of the Owners Association Board, the charges owing and / or negotiate alternative payment arrangements.

1.6. LEGAL PROCESS - DEFAULTING LAND OWNERS

prior to the Owners Association taking action to declare a Default Account and instigate Debt Collection, Owners are able to appeal to the Owners Association Board or a sub Committee of the Board to seek a review of their case. At the discretion of the Owners Association Board, the charges owing and / or negotiate alternative payment arrangements.

Lien over the Property

After 30 days, notification will be issued by the Dubai Land Department to the Land Owner, advising that a Legal Lien has been placed on the property in favour of the Owners Association.

3 months after the default notice

If the payment arrears remain unremedied after 90 days, the Owners Association will apply to the Court for execution of the Lien on the property. The property will be sold and the proceeds of the sales of the property will be used to pay the outstanding arrears and legal costs.

4. How are the Service Charges prepared ?

Service charge budgets are prepared by the Owners Association Manager in collaboration with the elected Board. The Service Charge budget includes two key cost elements - the general Fund and the Reserve Fund. The General Fund budget includes all known operational costs of the building including the annual maintenance contracts for major plant and equipment, maintenance agreements for other mechanical services, lift service contracts, fire and safety contracts, certifications and inspections, along with the various soft services such as cleaning, concierge security and so on. These costs plus insurances, audit charges and administration costs establish the annual budgeted cost for the building. The general Fund and the Reserve Fund together make up the Annual Service Charge budget.

This cost is then apportioned among all units in accordance with the entitlements table contained within the Jointly Owned Property Declaration registered at the Land Department. The entitlements table can be viewed by any owner at any time by contacting your Owners Association manager.

The service charge budget is approved by RERA prior to invoices being distributed. RERA examines the budgets to ensure they are reasonable for the standard of the building, include all elements that should be shared by all owners, and have been formulated according to Land Department guidelines.

5. What is a Reserve Fund??

A Reserve Fund is a fund set up by the Owners Association to cover the costs of known future capital expenses. Reserve Funds are set aside for such things as repainting and repairing the building exterior and structure and the replacement of common property items such as lifts and electric motors.

All Jointly Owned Properties are required by law to have a minimum ten-year Reserve Fund plan in place. This means that Owners Association must plan how they will repair and maintain common property and raise sufficient funds to cover the cost as the building components deteriorate over the lifetime of the building.

The amount required for the ten-year Reserve Fund plan will vary significantly between different Jointly Owned Properties. For instance, newer developments may require relatively less money to be set aside than an older development which are both registered at the same time as the older building would invariably have more repair work due and less time to accumulate the funds. Each Reserve Fund plan should reflect the individual needs of its development.