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The Dubai Land Department (DLD) established the Mollak System, an online platform for controlling and managing service charges and maintenance costs for groups of persons who own property collectively.
Before Mollak, many owners faced issues with management agencies, such as unclear bills or inconsistent billing. Mollak was created to address these issues by ensuring that everything is transparent, responsible, and standardised.
What is the primary aim of Mollak?
The system was launched to create:
- Transparency in service charge billing
- Fair and regulated budgeting
- Proper financial auditing
- Protection for unit owners
- Monitoring of management companies
How Does Mollak Work?
Mollak connects 3 main parties:
| Stakeholder | Role |
|---|---|
|
Property Owners |
Pay annual service/maintenance fees |
|
Owners Association Management Company |
Manages the property and submits budgets |
|
DLD |
Regulates and approves budgets, and monitors payments |
Notable Features of the Mollak System
Approved Service Charge Billing
- DLD checks and approves the fees that are sent to owners.
- No billing that isn’t okay or is too high.
Escrow Accounts
- All service fees are kept in trust accounts that are watched over by the government.
- The money can only be used to fix up properties and run the community.
Registering the Service Providers
- Maintenance, cleaning, security, and facility companies can only be hired if they are cleared and licensed.
Auditing of Budgets
- Every year, budgets are carefully checked to make sure they are correct and follow the rules.
What Is Owners Association Under Mollak?
An Owners Association (OA) takes a stand for all the people who own land in a building or neighbourhood.
Under Mollak, OAs work with approved management firms to:
- Take care of public space
- Hire service provider
- Make sure others follow the rules.
- Take care of planning your money
Owners are also allowed to attend meetings and vote on decisions.
What is Mollak service charge? How to Check it?
You can check your fees through:
- The Mollak Portal
- Your registered email notifications
- Your management company portal
- The Dubai REST app (linked to Mollak)
This ensures every owner knows what they’re paying for and why.
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Types of Charges You May See
Service charges are usually categorised into:
| Charge Type | Purpose |
|---|---|
|
General Maintenance |
Cleaning, repairs, landscaping |
|
Security & Safety |
CCTV, guards, emergency systems |
|
Utilities for Common Areas |
Water, electricity, cooling |
|
Insurance |
Building insurance |
|
Sinking Fund |
Long-term future repair fund (e.g., elevator replacement)
|
These fees vary depending on the community and property size.
Benefits of Mollak for Property Owners
- Greater transparency
- Fair and regulated service fees
- Protection from overcharging
- Access to audited records
- Secure payment methods
- Improved community maintenance and standards
When Tenants Are Impacted in An Indirect Way?
While tenants don’t use the system, they may still feel its effect in two ways:
Rent Pricing
- If service fees go up, some owners may change the rent when tenants renew their leases to cover their costs.
Access to Building Facilities
In some neighborhoods, if service fees aren’t paid, management may remove perks like
- Parking cards
- Gym and pool access
- Security gate entry
In this case, the renter isn’t responsible for payment, but they may have to deal with the effects of the owner not following through.
Final Thoughts
Understanding Mollak is important whether you’re a first-time buyer or an experienced real estate investor. It helps you stay informed and secure about your property ownership and ongoing costs.
Frequently Asked Questions
The Dubai Land Department’s Mollak System regulates and manages service fee payments for properties owned by many people. This ensures that everything is understandable and that the rules are obeyed.
The site allows property owners, firms that manage homeowners’ associations, and DLD regulators to keep track of bills, budgets, and maintenance expenditures.
Service fees are calculated based on authorised repair amounts and are reviewed by DLD before being sent to owners.
If the costs appear to be incorrect, owners can request additional information or raise concerns with the management firm or DLD.
If you do not pay, you may risk fines, limited service, or even civil action because DLD mandates and monitors payments.
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