Rules of the Association
Whereas:
The Project is a commonhold development project
The developer of the project and wishes to establish the Association to which all new Owners will become members.
In these Rules :
- Association means the association formed under these rules to manage and administer those aspects of the Project and the Commonhold Property that require agreement and cooperation of the Owners as a group
- Commonhold Property means that part of the land and Project that does not form part of any unit of the Project and is capable of and intended for the use, enjoyment and utility of all units
- Developer means [ ], the developer of the Project
- Manager means the manager of the Association appointed by the Association from time to time
- Management Agreement means that form of agreement to be entered into between the Developer and the Association whereby the Developer will serve as the first Manager and which agreement was disclosed to each Owner as an attachment to the offer made to acquire his interest in the Unit
- Owner means an owner of a freehold interest in a Unit. The initial Owner of all Units is the Developer
- Project means the land, residential buildings, parking structures and amenities buildings known as [ ]
- Unit means an individual numbered unit designated as such on the plan for the Project registered at the Dubai Land Department and includes the Commonhold Property and the parking space(s) attaching to that Unit as shown on the said plan.
1. MEMBERSHIP IN THE ASSOCIATION AND TERM
1.1 Each Owner shall become a member of the Association upon the registration of his interest in the Unit at the Dubai Land Department
1.2 No person other than an Owner may become a member of the Association.
1.3 In the case of joint Owners the first named party on the title deed shall be considered for the purposes of these Rules to be the Owner.
1.4 No Owner may resign or otherwise relinquish his membership in the Association.
1.5 The Association shall come into existence when the first Unit in the Project is sold and the plan of the project is registered at the Dubai Land Department and shall continue in existence for an unlimited period.
2. OFFICE OF THE ASSOCIATION
2.1 The Association shall have its main office in the Project and shall provide the Manager office space in the Project without charge from which to administer the affairs of the Association.
3. POWERS OF THE ASSOCIATION
3.1 The Association has the power to :
(a) enter into binding agreements through its Manager
(b) fix an annual fee to be levied against each Unit for the operating, upkeep, repair and maintenance of the Project and the fee levied against each Unit must equal the percentage that the Commonhold Property attached to that Unit, as shown on the plan for the Project registered at the Dubai Land Department, is to the total annual fee
(c ) fix an annual fee to be levied against each Unit for replacement or repair of Commonhold Property where it is expected that such replacement or repair will be necessary in the future and would under generally accepted accounting practice be considered a capital expenditure provided that the fee levied against each Unit must equal the percentage that the Commonhold Property attached to that Unit, as shown on the plan for the Project registered at the Dubai Land Department, is to the total annual fee
(d) make rules to govern its members and deal with all matters of membership
(e) determine the terms of payment of all fees with respect to the Project and charge interest on payments in arrears
(f) appoint a Manager of the Association to manage the day to day affairs of the Association or enter into management agreements with companies for this purpose
(g) appoint the auditor for the Association
(h) take proceedings in the name of the Association in the Courts of Dubai against any Owner that is in default in payments due the Association or is otherwise in breach of these Rules or any regulations made pursuant thereto and seek remedies to enforce payment or remedy the breach including but not limited to the forced sale of the Owner’s Unit
3.2 The Association may delegate any or all of its powers as it may from time to time see fit
4. DUTIES OF THE ASSOCIATION
4.1 The Association has the duty to:
(a) appoint a Manager to manage the Project and administer its day to day affairs
(b) maintain and manage the Commonhold Property for the general benefit of all Owners
(c) ensure that each Owner will enjoy peaceful possession and quiet enjoyment of his Unit and the Commonhold Property in accordance with these Rules and the regulations made pursuant to these Rules
(d) enforce the Rules and regulations of the Association
(e) insure the Project, all Units (but not the contents of any Unit) and the Commonhold Property against all customary risks to the replacement value of the Project naming the Association as the main beneficiary of the insurance proceeds
(f) register the plan, the lot and the building comprising the Project at the Dubai Land Department as a Commonhold project
(g) file the Rules and all amendments thereto and all minutes of Association meetings at the Dubai Land Department
5. ASSOCIATION MEETINGS
5.1 The Manager shall once a year, not later than ninety days (90), following the receipt of the auditor’s report on the Association’s accounts, convene a meeting of all Owners for the purpose of:
(a) appointing or reappointing a Manager if there is no Management Agreement then enforce
(b) receiving for approval the accounts of the Association
(c ) receiving a report from the Manager on the previous year’s operations
(d) appointing auditors for the Association
(e) such other business as may properly be brought before the meeting
5.2 Each Owner shall be given 15 days written notice of the meeting by post to the address for mailing given to the Association by the Owner
5.3 The notice shall state the place, date and time of the meeting and the nature of any special business to be brought before the meeting and be accompanied by the audited accounts for the preceding fiscal year if this is a meeting to consider the accounts
5.4 A quorum for a meeting shall be two Owners or individuals representing an Owner by proxy, and a representative of the Manager must be in attendance. If no quorum is present within 30 minutes of the time for the meeting to begin the meeting shall stand adjourned to the day following at the same time and place and the meeting shall proceed with the Owners or their proxies and the Manager’s representative then present
5.5 The Manager shall set the rules for the meeting as are required subject to the requirement that all matters must be decided by a majority vote of the Owners present at the meeting unless otherwise stated in these Rules
5.5 On all votes at a meeting each Owner shall have that number of votes that corresponds to the percentage interest that Owner has in the Commonhold Property.
6. DUTIES OF OWNERS
6.1 Each Owner shall :
(a) permit the Manager, at all reasonable times and on reasonable notice (except in cases of emergency) to enter into his Unit for the purpose inspecting, maintaining and repairing the Commonhold Property
(b) pay the Association all fees, rates, taxes and premiums that may become payable in respect of his Unit
(c) maintain his Unit in a state of good repair
(d) notify the Association immediately if there is a change of Owner with respect of his Unit
(e) ensure that all occupants of his Unit comply with the Rules and regulations
(f) at all times comply with the laws, decrees rules and regulations of the Emirate of Dubai and the United Arab Emirates from time to time enforce that relate to the Project or his Unit and procure that all occupants of his Unit also comply
(g) comply with all notices and instructions from the Manager with respect to the use and occupation of the Unit and the Project
7. RESTRICTIONS ON OWNERS
7.1 No Owner shall:
(a) make structural, mechanical or electrical alterations to his Unit or to the Commonhold Property without the prior written consent of the Manager
(b) expose laundry to the public view by hanging it on balconies, out windows or by any other means
(c ) allow in his Unit any animal, reptile or bird that is not customarily reared inside a building and considered generally as a house pet and all pets must be carried or on a leash when outside any Unit
(d) permit explosives, hazardous chemicals or firearms to be stored in any Unit, in any part of the Project, in its annexes or beside the Project
(e) store any of his personal property in any of the Commonhold Property
(f) erect any sign or billboard on any part of the Commonhold Property including the entrance to his Unit
(g) park vehicles in other than designated parking spaces that has been assigned to his Unit
(h) allow his Unit to fall into disrepair, become infected with insects or in any way become a health hazard to the Project
(i) create a nuisance
(j) use the Commonhold Property for any personal use such as dusting carpets, cleaning furniture or displaying plants and flowers
(k) use or permit the use of the parking structure for any purpose other than parking vehicles
(l) make any change (including a color change) to the external appearance of the Project or its doors and windows
8. RIGHTS OF OWNERS
8.1 The Owners may convene a meeting of all Owners at any time by lodging with the Manager a request for a meeting stating the business for the meeting, which may include a proposal to terminate the Manager, subject to the terms of any Management Agreement then in force, which request shall be accompanied by a signed petition of the Owners representing twenty five (25%) percent of all Units.
8.2 Any Owner has the right to require that the Manager enforce the Rules and regulations and if the Manager does not take enforcement action on its own after being requested by an Owner, an Owner may take proceedings in the Courts of Dubai and seek relief against the Association and/or any Owner that is in breach of the Rules or regulations.
8.3 The Owners may amend these Rules by the affirmative vote of seventy five percent (75%) of the Owners voting on the proposal except that an amendment to alter the percentages of Commonhold Property attaching to the Units requires the unanimous vote of all Owners and the aggregate percentage of all Commonhold Property must at all times equal one hundred percent (100%).
8.4 The Owners may make regulations that are supplementary, but not contradictory, to these Rules with respect to matters that in the Association’s opinion require regulation for the betterment of all Owners collectively.
9. DUTIES OF MANAGER
9.1 The Manager shall
(a) collect all fees and other charges due to the Association from each Owner and third parties and deposit all monies received in a bank account for the Association and not commingle funds from any other source
(b) keep accurate accounts of the financial transactions arising in the management of the Project and render to the Association yearly statements of income and expenditure with respect thereto and keep such accounts open for inspection by any Owner at all reasonable times
(c) prepare and submit to the Association on or before the 1st day of December of each year a budget for the next Gregorian calendar year showing anticipated receipts and estimated expenses that will be incurred or required in such calendar year for repairs and maintenance and a separate budget for the capital reserve fund with a breakdown, in each case, of those expenses showing the amount of expenditure pertaining to each Unit calculated in accordance with the Rules
(d) make payments of all accounts properly incurred by the Manager in carrying out its duties
(e) keep up, repair and maintain those parts of the Commonhold Property which require upkeep, repair and maintenance such upkeep, repair and maintenance to be according to the highest standards consistent with the character of the Project and the overall development of neighboring area including, without limiting the generality of the foregoing, cleaning, painting, decorating, landscaping, garbage collection and such other annual maintenance and repair work as may be necessary
(f) maintain a current list of all Owners and their contact particulars including a mailing address for each Owner
(g) serve notices to all Owners of any meeting called by the Manager
(h) attend Association meetings
(i) use reasonable diligence to assure that agreements between the Association or the Manager on behalf of the Association with suppliers of goods and services are performed in accordance with their terms and to inform the Association in the event performance is considered to be contrary to the agreed terms and intent of same
(j) make recommendations to the Association from time to time as to maintaining of Commonhold Property and property and assets of the Association
(k) advise the Association with respect to any further rules or amendments to existing Rules which in the opinion of the Manager should be established to further the harmonious and satisfactory operation of the Commonhold Property for the common benefit of the Owners
(l) enforce the Rules and for that purpose the Association hereby specifically delegates its authority to enforce the Rules to the Manager including the right to represent the Association in the Courts of Dubai
(m) carry on and conduct itself in a manner that complies with all laws, decrees, rules and regulations in the UAE for the time being in force
(n) cause the accounts maintained by the Manager to be audited annually by the auditor selected by the Association and deliver a copy of the audited accounts to each Owner with the notice of the annual meeting of the Association
(o) manage the capital reserve fund and invest surplus funds in investment grade securities offered by banks operating in Dubai or any other kind of investment as the Association may think fit
(p) insure the Project, all Units (but not the contents of any Unit) and the Commonhold Property against all customary risks to the replacement value of the Project naming the Association as the main beneficiary of the insurance proceeds
(q) file the minutes of each meeting of the Association at the Land Department in Dubai
(r) hear and settle complaints of the Owners in a fair and equitable manner consistent with the Rules and regulations
(s) implement resolutions of the Association passed at duly convened meetings of the Association
10. ACCOUNTS AND FINANCIAL YEAR
10.1 The financial year of the Association shall be from January 1 to December 31 and the first financial year shall be for a period commencing on a date as determined appropriate by the Manager and ending on December 31 of that year.
10.2 Accounts for the Association shall be audited each financial year by the auditors of the Association chosen by the Owners at their annual meeting.
10.3 Each Owner, or a qualified accountant of his choice, shall have the right to inspect the accounts of the Association on reasonable notice and at reasonable times.
