laws

Ajman Law No. 3/2020, titled "On the Regulation of the Owners' Affairs in the Emirate of Ajman," has been amended by Ajman Law No. 1/2021. The law focuses on the regulation of owners' affairs in Ajman, particularly in relation to real estate and property ownership. Under the law, the Management Company replaces the property Developer in all existing contracts with different Service Providers. The Management Company has the authority to request amendments to these contracts if they contain terms detrimental to the interests of the owners of the Real Estate Units. The law outlines the responsibilities of the Management Company, which include managing and controlling common facilities and assets, maintaining and renovating common parts and facilities, ensuring eco-friendly waste management and energy and water supply, executing required works on Real Estate Units when owners fail to do so, safeguarding owners' rights, and handling day-to-day operational matters. The law also addresses financial aspects, such as the consideration for services, which is the share of expenses related to the management, operation, maintenance, and repair of common parts and facilities. The Management Company collects this consideration from owners based on their percentage of contribution. The law prohibits the Management Company from imposing or collecting any consideration or fines without prior approval from the Department of Land and Real Estate Regulation. Furthermore, the law establishes a maintenance account for each managed property, consisting of a general account and a reserve account. The Management Company or the Developer, depending on the situation, opens this account at an approved bank. The law specifies the revenues and expenditures related to the management of common parts and facilities, including the consideration for services, insurance proceeds, fees, and emergency or asset replacement expenditures. The law also addresses the collection of amounts due from Real Estate Unit owners, giving the Management Company a preferential right over unpaid considerations or other financial obligations. If an owner fails to pay, the Management Company can require payment within a specified period, and the notice serves as a writ of execution enforceable by the court. Other provisions of the law include insurance requirements, notice obligations upon leasing Real Estate Units, oversight and inspection by the Department, restrictions on modifications to Sub-Properties, capacity of judicial officers appointed by the Department, fees, violations, fines, and the process for lodging grievances. The recent amendment to the law, Ajman Law No. 1/2021, introduced changes to Article 30, specifying the Management Company's preferential right over Real Estate Units in case of unpaid considerations or financial obligations. The law also emphasizes the role of the Department of Land and Real Estate Regulation in overseeing and inspecting the management of common parts and facilities.