Dubai’s real estate market is fast-growing and attracts investors worldwide. The city is known for its skyscrapers, luxury developments, and strong regulations, making it a global real estate hub.
A key part of Dubai’s property sector is jointly owned properties (JOPs). These include residential communities and buildings where multiple owners share common facilities like parking, pools, and security. Proper management of these areas is essential to maintaining property value and quality of life.
The Dubai Land Department (DLD) launched Mollak, a digital system for managing service charges in JOPs. It oversees fee collection, audits, and approvals through the Real Estate Regulatory Agency (RERA).
- Mollak prevents overcharging, provides financial clarity, ensures transparency, and builds trust.
- Mollak also helps resolve disputes efficiently.
- Mollak enhances Dubai’s real estate market by ensuring fair and transparent property management for all owners.
Here is a detailed guide on Mollak Dubai.
Key Takeaways
- Mollak, introduced by DLD in 2019, ensures clear financial tracking for jointly owned properties (JOPs), including service charges and escrow accounts.
- RERA approval is required before collecting fees, preventing overcharging and ensuring financial accountability.
- Homeowners can file complaints through Mollak, with RERA overseeing investigations and enforcing fair resolutions.
- Mollak’s regulatory framework enhances trust in Dubai’s real estate market, attracting both local and international investors.
- Regular checks ensure service charges are properly managed, with penalties for violations, maintaining industry integrity.
What is Mollak Dubai?
Mollak is a digital platform created by the Dubai Land Department (DLD). It was launched in 2019 to improve transparency and the management of jointly owned properties (JOPs) in Dubai. The platform helps regulate service charges, manage escrow accounts, and improve communication between property owners, developers, management companies, and government bodies.
What is the Purpose of Mollak?
The Real Estate Regulatory Agency (RERA), which is part of DLD, created Mollak to make Dubai’s real estate market more transparent and efficient. The platform was built to solve issues related to managing service charges and to make sure all financial transactions are clear and follow the rules.
How Mollak Manages Jointly Owned Properties (JOPs)
Mollak is a central system that helps manage JOPs by:
- Tracking Service Charges: It ensures service charges are recorded, checked, and approved by RERA. This prevents errors and overcharging.
- Managing Escrow Accounts: Mollak monitors escrow accounts to ensure the money is used correctly for property maintenance and management.
- Ensuring Transparency: Property owners can see exactly what they owe and how the money is spent on property care.
Who Uses Mollak?
- Property Owners: These are the individuals or companies who own units in JOPs. They benefit from clear service charges and fast dispute resolution.
- Developers: Companies that build real estate projects. They must follow the rules for registering and collecting service charges through Mollak.
- Property Management Companies: These firms handle the day-to-day tasks of managing JOPs. They use Mollak for budgeting, reporting, and staying compliant with the rules.
- Regulatory Authorities: Bodies like RERA oversee the real estate sector to make sure everyone follows the rules and Mollak works as it should.
How Mollak Works
Mollak works through a step-by-step process that involves all the key players:
1. Registration and Setup
Management Companies: These companies register on the Mollak system. They provide the necessary details and get approval from RERA to manage JOPs.
Property Owners: Owners are given login details to the Mollak portal. They can then access financial statements, see their service charge details, and make payments online.
2. Budgeting and Approval of Service Charges
Budget Submission: Management companies create annual budgets for the maintenance and operations of shared areas in the property.
RERA Review: RERA checks these budgets to make sure they meet the rules and are reasonable.
Approval and Publication: Once approved, the budgets are published on Mollak for property owners to see.
3. Invoicing and Payments
Invoice Generation: Based on the approved budget, Mollak creates invoices for each property owner, showing how much they owe.
Payment: Property owners can pay their service charges directly through Mollak using different payment options. The money is then placed into the appropriate escrow accounts.
4. Auditing and Compliance
Financial Audits: Regular checks are done to make sure the service charges are being used properly.
Compliance Checks: Mollak monitors whether all rules are being followed. If something is wrong, it flags the issue for correction.
Benefits of Using Mollak Dubai
a. Benefits for Property Owners
Clear Service Charges: Mollak gives property owners a detailed breakdown of service charges. This way, owners know exactly what they are paying for.
Protection from Overcharging: By reviewing and regulating service charges, Mollak helps prevent developers or management companies from overcharging.
Easy Payments and Dispute Resolution: Mollak makes it easy for owners to pay their charges. It also provides a simple way to resolve any disputes.
b. Benefits for Property Developers & Management Companies
Simplified Fee Collection and Compliance: Mollak automates the service charge collection process. It also tracks whether everything is being done according to the rules, reducing the paperwork.
Standardized Financial Reporting: The platform enforces a standard for reporting finances, helping build trust and accountability.
c. Benefits for Dubai’s Real Estate Market
Boosted Trust and Investor Confidence: Mollak increases transparency and fairness, which helps attract more investors and build trust in the market.
Better Management of Shared Property Costs: The platform provides strong oversight of shared expenses, which creates a more stable and appealing real estate environment.
Mollak Registration Process
1. How to Register the Owner’s Committee?
Unit owners and management companies can easily register on the Mollak system. If you own a unit in a co-owned property, you can register an owner’s committee for free. Here’s how to do it and what documents you’ll need.
Required Documents
- A personal photo of the property owner.
- Approval of the ethical guidelines for the owner’s committee.
- A copy of the commercial license (if it’s a commercial unit).
- A copy of the DEWA bill in the owner’s name.
If the commercial license is listed in the title deed, provide:
- A copy of the rental contract (must be registered in Ejari).
- A copy of the commercial license of the rented company.
Registration Process
- Go to the DLD website (Mollak system) or use the Dubai REST app.
- If you already have an account, just log in.
- Submit all the necessary documents and fill out the required information.
- The DLD will review your request.
- You’ll receive a notification about whether your request is approved or rejected.
- Once approved, you can view the committee details on the Mollak system.
Service Terms
As an owner, you must follow these terms:
- Pay the service charges that are approved by RERA on time.
- You must own and live in an apartment in Dubai that is part of a co-owned property.
- Provide a certificate of good conduct from the Dubai Police, addressed to RERA.
2. How to Register a Company for Jointly-Owned Property Facility Management?
This service allows management companies to register as official RERA companies to handle the administration of jointly-owned properties. Here’s what you need to do:
Required Documents
- The company’s name and logo image.
- A photo of the company’s manager.
- A certificate of experience along with photos of:
- Director of Owners Affairs.
- Finance Manager.
- Director of Facility Management.
Registration Process
The process is similar to registering the owner’s committee. However, there are a few extra requirements that a company must meet.
Service Terms for Companies
- Expats must have a valid residency visa.
- The company must have a good conduct certificate from the Dubai Police addressed to RERA.
- Management companies and their employees cannot be involved in other licensed activities.
- No one can take part in management activities without approval and a license from RERA.
Understanding Service Charges in Mollak
a. How Service Charges Are Calculated and Approved?
Service charges are calculated based on the estimated costs for maintaining and managing shared areas in a property. These charges must be submitted to RERA for approval to make sure they are fair and reasonable.
Types of Charges
- Maintenance: Costs for keeping common areas and facilities in good condition.
- Utilities: Costs for shared services like water and electricity in the common areas.
- Sinking Fund: A fund saved for major repairs or replacements in the future.
b. How Homeowners Can Check and Dispute Charges
Homeowners can view a detailed breakdown of service charges through the Mollak portal. If they find any errors or feel the charges are wrong, they can file a complaint. This will start a review process by RERA.
Payment Process & Methods
a. How Residents Can Pay Service Charges Through Mollak?
Residents can log into the Mollak portal to see what service charges they owe and pay directly through the system.
Payment Methods
- Online Payment: Mollak offers safe online payment options.
- Bank Transfers: Residents can transfer money directly from their bank accounts.
- Direct Debit: Automatic payments can be set up for convenience.
b. Late Payment Penalties and Consequences
If payments are late, penalties such as fines or legal action may occur. It’s important to pay on time to avoid these consequences.
Dispute Resolution & Compliance
a. How Homeowners Can File Complaints About Service Charges?
If homeowners think they are being overcharged or the service charges are unfair, they can file a complaint through Mollak. The system lets owners see detailed records of their payments and charges.
If something doesn’t look right, owners can submit a formal complaint to the Dubai Land Department (DLD) or the Real Estate Regulatory Agency (RERA).
Complaints can be filed online through the Mollak portal, the Dubai REST app, or in person at RERA’s office. Homeowners may need to provide documents like invoices and payment records to support their dispute.
b. Role of RERA in Handling Disputes
RERA is in charge of making sure service charges are fair and resolving disputes between owners and management companies. When complaints are filed, RERA investigates whether owners are being overcharged. If they find any issues, they can order adjustments. RERA also helps mediate conflicts and provides a legal process for resolving disputes between homeowners and management firms.
c. Legal Actions Against Non-Compliant Developers or Management Firms
If a developer or management company doesn’t follow the rules such as charging unauthorized fees, not being transparent with finances, or misusing funds, RERA can take legal action. This may involve fines, suspending their license, or even legal prosecution.
In serious cases, management companies could lose their license to operate in Dubai. These strict rules help ensure service charges are fair and proper.
d. How Audits Ensure Compliance with Dubai’s Real Estate Laws
Audits are done regularly to check that service charges are being used correctly. Mollak requires property management companies to provide financial reports, which RERA reviews for compliance.
These audits help spot problems, like inflated service charges or funds being misused. If any issues are found, corrective action is taken to protect property owners and keep Dubai’s real estate market trustworthy.
Impact of Mollak on Dubai’s Real Estate Market
a. How It Has Improved Regulation and Transparency
Before Mollak, managing service charges in jointly owned properties (JOPs) wasn’t fully transparent. Some property management companies would overcharge or misuse fees.
Mollak brought in a structured system where RERA approves and monitors all service charges. This has made things much clearer, preventing unfair charges and making sure homeowners know exactly where their money is going.
b. Impact on Foreign Investors and Real Estate Trust
Dubai is known for attracting foreign investors due to its strong returns and well-regulated market. Mollak has made Dubai even more appealing to international buyers by offering better financial transparency in JOPs. This has boosted investor trust in Dubai’s property market, making it an even better place to invest.
c. Comparison with Similar Systems in Other Cities
Mollak is similar to property management systems in cities like London, New York, and Singapore. For example, in London, there are strict laws on leasehold service charges to stop overcharging. In New York, condos and co-ops must follow financial transparency rules.
What makes Mollak different is that it’s fully digital and directly connected to government authorities, providing a higher level of control and oversight.
d. Future Improvements and Updates Expected in Mollak
Dubai is always improving its real estate regulations, and Mollak will keep getting better, too. Future updates may include AI tools to quickly spot financial issues, better payment integration with banks, and more features to help resolve disputes. These updates will improve transparency and make the system easier for property owners to use.
FAQs About Mollak
Who Needs to Register on Mollak?
All property management companies, developers, and owners’ associations managing jointly owned properties in Dubai must register on Mollak. Homeowners can also access the system to keep track of their service charges.
Can Service Charges Be Negotiated?
Service charges are set based on property maintenance needs and must be approved by RERA. While homeowners can’t negotiate charges directly, they can challenge any unfair fees through Mollak.
What Happens If a Property Management Company Is Non-Compliant?
If a management company doesn’t follow Mollak’s rules, RERA can impose fines, demand financial corrections, or revoke its license. Serious violations could lead to legal action.
How Does Mollak Ensure Funds Are Used Appropriately?
Mollak requires service charges to be approved by RERA first, and then the funds are audited regularly. This ensures the money is spent on property maintenance and not misused.
How Do I Check My Service Charge Balance on Mollak?
Homeowners can log into the Mollak platform or the Dubai REST app to see their service charge balance, payment history, and a detailed breakdown of charges.
