Abu Dhabi tightens rules for jointly owned property management and service charges

Abu Dhabi's Administrative Decisions No. 25 and 26 of 2025 establish a comprehensive regulatory framework for post-handover management of jointly owned property. Administrative Decision No. 25 requires developers to provide disclosure statements before purchase contracts are signed, covering building descriptions, common facilities, draft management systems, and service fee estimates for the first two years. Developers remain liable for materially inaccurate disclosures for two years from transfer. Management companies must be ADREC-accredited and appointed within 30 days of first unit delivery. They must use electronic management systems and report to ADREC every six months. Annual service fees must be paid in monthly or quarterly installments, not lump sums. Unpaid fees create a lien over the unit that transfers to new owners. Administrative Decision No. 26 introduces a standardized owners' committee bylaw applicable across Abu Dhabi. Committees must form once 30% of units are registered to multiple owners, comprising five to nine elected resident unit owners on a one-owner-one-vote basis. Developers are excluded from membership. The committee's role is supervisory: reviewing budgets and monitoring management company performance. ADREC approves management systems, budgets, and service fees; unapproved fees are unlawful and unenforceable.