What is the Mollak system by RERA?
If you’ve been around in Dubai for a minute now, you might have been made familiar with the Mollak system, whether you’re a buyer or renter.
But, if you’re new here and aren’t too sure what the Mollak system is or how you could apply for it - fear not, we’ve done all the heavy lifting for you to break down just what it is, and how you can apply for it!
What is Mollak?
Mollak is essentially an innovative online service system that works for joint property ownership. With Mollak, as a unit owner, you can seamlessly manage your service charges, eliminating potential conflicts and inconveniences between yourself and your partner.
By easily facilitating the registration of maintenance companies and meticulously tracking escrow accounts and service charges, Mollak service ensures a streamlined experience for all the stakeholders involved in joint ownership of a property.
What does Mollak bring to the table for co-owners?
Think of it as a trusty ally for property co-owners, simplifying collaboration with their association managers - Mollak has a set of benefits such as:
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Answering the community's call for transparency, Mollak ensures regulated accounts are easily accessible.
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Quarterly invoices, managed by the Owner Association’s manager, are seamlessly dispatched to all registered owners.
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Compatible with multiple payment methods, Mollak has garnered attention from prestigious banks in Dubai, including Al Mashreq, Emirates NBD, UBL, and the Commercial Bank of Dubai.
How does Mollak work for co-owners?
Planning to get started? Here’s everything you need to follow:
Management companies are required to meet registration criteria to enrol their organisation and key managerial staff into the system. Once registered, each project managed by a company will be treated as an individual 'property group', provided all requirements are met. Additionally, an online agreement will be executed to formalise the management of the community.
To pay service charges, companies must establish a regulated bank account approved by DLD. Subsequently, management companies will allocate a budget for each property group and submit it to Mollak for review by an audit firm. Following the review, the audit firm will forward the budget to DLD for final approval through Mollak. Once approved, Mollak will issue an approval notice for the entire budget period to the owners.
Owners have the convenience of paying service charges through various online payment options, including Noqoodi. The Mollak Dubai portal can be accessed via the DLD website, allowing property owners to input their property details and check service charges effortlessly.
What rules and regulations do you need to follow for the Mollak system?
The Dubai Land Department has established important rules and regulations that jointly-owned property owners should be aware of. One key requirement is the need for a declaration or contract to share a property's profits with a co-owner. Here's what you need to know about this declaration:
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The declaration is necessary for each portion of the land, whether it's a plot with a building or just a part of a building.
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Declarations for plots can only be registered if they are listed in the approved list of jointly owned units.
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Owning for leasehold or freehold interests are valid for a maximum of 99 years - max!
Looking to figure out Mollak for your next property?
Drop our team of in-house experts a line - and we’ll help you from start to finish!
Until then, take a look at a few of our live listings!