According to a new circular issued by the Real Estate Regulatory Agency (RERA), developers in Dubai will not be allowed to manage a project if complaints of negligence or mismanagement are received against them in the first year of management itself. In such cases, the developer’s power to manage the project will be withdrawn and an interim owners association (IOA) will have to be set up.
The circular further states developers will have to form an IOA before claiming any fees for services after the first year of operation is over.
