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Abu Dhabi Administrative Resolution No. (25) of 2025: Regulating Ownership and Controls Over Real Estate, Parts, and Common Facilities
5 min 12 sec
July 8, 2026 (Edited)
Written by
l.grossi@tamimi.com 
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The Abu Dhabi real estate sector has entered a new era of regulatory oversight with the issuance, on 28 February 2026, of Administrative Resolution No. (25) of 2025 regulating ownership and controls over the use and management of real estate, parts, and common facilities. The Resolution implements and provides operational details to the existing legal framework regarding jointly owned property.
This marks a positive step toward greater transparency, accountability and protection for all stakeholders in the jointly-owned real-estate market, with relevance for developers, management companies, and individual unit owners. By introducing more details around governance, service charge regulation, mandatory disclosure, financial controls, and developer liability, the Resolution seeks to tighten the property sector and align Abu Dhabi’s regulatory landscape with international best practices.
Changes to the regulatory framework
The Resolution provides operational and procedural details on how the regulatory framework works in practice. This article provides a summary of some notable considerations.
Owners’ committee framework
The Resolution gives detailed operational content to the owners’ committee framework. It defines and regulates the management systems (building management system, layer management system, and complex management system) that govern the relationship between unit owners, management companies, and developers.
It prescribes the required contents of each management system; the process for
approval or refusal by the Abu Dhabi Real Estate Centre (ADREC) — including the grounds on which ADREC may refuse a building management system; grievance and appeal timelines; and rules for resolving conflicts between different management systems.
The Resolution also prescribes what constitutes common parts under both a layer scheme and a complex plan, and sets out an owners’ threshold of 95% of total contribution shares (or a court decision in specified circumstances) as the requirement for terminating or cancelling a stratified or complex plan.
Management of common parts
The Resolution provides operational mechanics to how the management of common parts is conducted. Developers must appoint a specialised management company from a list of ADREC-approved companies within 30 days of delivering the first unit to its owner. Appointment agreements are capped at three years without ADREC approval.
Additionally, ADREC may require companies seeking accreditation to provide bank guarantees or professional insurance to cover potential damage to common parts arising from their negligence or default.
Service charges pre-approval
The Resolution gives enforcement detail regarding service charge approval. ADREC requires pre-approval for all service charges, and expressly declares any unapproved fees to be illegal and unenforceable. The Resolution also prohibits management companies and developers from imposing any fees or charges of any kind beyond those approved by ADREC, and grants payers a statutory right to recover unapproved fees.
The developer will be responsible for service charges relating to unsold units and for units where the developer has contractually assumed that obligation. Annual service fees must be payable in monthly or quarterly instalments and cannot be demanded as a single annual payment. Unpaid service fees constitute a lien on the real estate unit that survives transfer of ownership. Similarly, complex fees charged by master developers for shared infrastructure and facilities must be ADREC-approved.
Disclosure obligations for off-plan sales
The Resolution introduces detailed disclosure obligations for off-plan sales that go beyond the previous framework. The Resolution prescribes a comprehensive list of items that must be disclosed, including building descriptions, sustainability measures, proposed common facilities, draft plans, materials and finishes tables, a two-year budget, estimated service fees, and estimated delivery dates.
Failure to comply gives the buyer a right to terminate and the developer bears liability for materially inaccurate or incomplete information for two years from the transfer.
Operational and financial controls
The Resolution introduces several new operational and financial controls, including:
- mandatory electronic management and accounting systems for management companies;
- six-monthly reporting obligations to ADREC;
- detailed rules governing supply agreements (including a two-year maximum term without ADREC approval, competitive pricing requirements, and a prohibition on private profits); and
- a requirement that developers do not collect maintenance amounts from buyers more than three months in advance of the time they are needed.
Insurance obligations
The Resolution establishes comprehensive insurance obligations. Management companies must insure common areas and jointly-owned property for an amount sufficient to cover repair or reconstruction in the event of destruction or collapse. They must also maintain liability insurance against damages and bodily injuries that may affect owners, occupants or third parties within the jointly-owned property.
Insurance premiums are included in service charges. Notably, if an owner or occupant’s particular use of their unit causes the insurance premium to increase, the management company may recover the excess premium as a debt from that owner or occupant.
Modifications to jointly-owned property
The Resolution regulates modifications to jointly-owned property. Owners and occupants are prohibited from making any substantial modifications, alterations or additions to the structure or external appearance of their unit, or any part of the jointly-owned property, without first obtaining written approval from the developer or management company, or having explicit authorisation under the applicable management system.
If an owner or occupant fails to comply, the management company may carry out the repairs and recover the costs from the non-compliant party.
Reserve fund and service charge deposits
The Resolution introduces robust financial controls relating to the reserve fund and service charge deposits. Management companies must deposit collected service charges into a designated bank account and must maintain a separate reserve account for emergencies or the replacement of equipment in common areas. Disbursement from the reserve requires ADREC approval, except in urgent emergencies.
When collecting outstanding service charges, the Resolution prescribes a detailed enforcement procedure. The management company must first obtain an auditor-certified statement of the arrears, serve a 30-day written notice to the owner, and then apply to ADREC for an enforceable instrument. ADREC may also place a restriction in the property register prohibiting transactions until the outstanding sums are paid.
Implications for stakeholders
Stakeholders should carefully assess their existing arrangements and ensure full compliance with the new requirements. The Resolution’s emphasis on ADREC oversight, financial transparency, and consumer protection signals a clear regulatory intent to foster a mature, well governed, and investor-friendly real-estate market.
Further instructions and guidance from ADREC are expected to follow. In the meantime, market participants would be well advised to engage early with legal advisors to navigate the changes and capitalise on the opportunities that a more structured regulatory environment presents.
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