Mollak means “Owner” in Arabic. Mollak system is an innovative, digital online solution that was established by RERA to effectively manage jointly-owned properties in the city. It is an online service that regulates and monitors the payment of services charges in jointly-owned properties within Dubai. Mollak is created mainly to help real estate stakeholders, including residential property designers, owners, capitalists, organization owners as well as organization managers to follow all the RERA enrollment and monitoring requirements.
Transparency and regulation are the foundations of Mollak. The Mollak system reflects the provisions of Law Number (6) of 2019 concerning Jointly Owned Property (JOP) in the Emirate of Dubai and its regulations.
Services provided by Mollak system:
It is an end-to-end model which offers the following services:
- Enables registration of all stakeholders in jointly-owned properties.
- It sends quarterly invoices to the registered owners.
- It supports various payment gateways.
- It caters to the requests of registering structured accounts for the community.
How to register?
To initiate the process, co-owners need to follow the following steps:
- Management companies have to follow all the registration requirements to enroll their organization and key managerial staff into the system.
- After the company is registered, every project that the company manages will be registered as an individual ‘property group’, provided they comply with all the requirements.
- Now, an online agreement is to be signed to assign the management of the community.
- Companies are required to make a regulated bank account approved by DLD for the payment of services charges.
- The management companies are asked to set a budget for each property group and submit it to the Mollak system so that it can be reviewed by an audit firm.
- After confirming the audit firm will submit it to DLD for final approval on Mollak.
- After all the steps and approval Mollak shall send an approval notice for the full budget period to owners.
- Owners are given various options in order to pay service charges to the Mollak.
Rules and regulations by DLD for join property owners:
Mainly, a declaration/contract is required in order to share the profit of a property with a co-owner so some rules for this declaration are as follows:
- The declaration is required to define whether it is a plot comprising a building or part of a building.
- Declaration for a plot can only be registered if it is mentioned in the approved list of RERA for jointly owned units.
- There is a 99-year limitation on the valid period of leasehold or freehold interests.