FREQUENTLY ASKED QUESTIONs
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The Community Management Fee is reviewed on a yearly basis and is subject to increase or decrease depending on the operating costs of the community. CMF charges are subject to change from year to year due to many factors such as the expiration of various warranties and the defective liabilities period, additional maintenance costs, and increase of tariffs from the regulatory authorities (FEWA, District Cooling Plants, etc.)
As a property owner, each owner will have signed a SPA (“Sales & Purchase Agreement”) when you purchased your property and is subject to a developer declaration. The declaration states all owners are legally obliged to pay Community Management Fee. Owners who continue to leave their Community Management Fees unpaid will have their property marked as a defaulting property and this may result in the following:
- A late payment fee of 12% per annum (1% monthly) can be imposed against the defaulting property;
- Limitations and restriction on selling a property; and
- Legal action against the unit owner.
If you wish to pay your Community Management Fee and require a payment plan, please contact the Community Manager to discuss payment options.
The Community Management Fee (service charge) invoices are issued to all owners annually and owners must pay the invoice as per the due dates indicated on the invoice.
The Community Management Fee can be paid in advance based on a provisional manner. An updated statement of account can be requested from the Community Management team.
The Community Management Fee is determined on an annual basis by Al Hamra. This budgeting exercise is carried out based on a detailed estimate of the expenses required to operate the Community each year.
It is essential that owners recognize their obligations in the interest of the property and wider community in settling all outstanding dues. Without collecting these monies, the buildings and the community will not have adequate funds to ensure continuation of critical services, utilities etc. and address its obligations.
If owners do not pay their service charge, the Community will run short of funds for maintenance and in time, may not be able to provide basic services such as paying for common area utilities (electricity and water), insurance, waste management, maintain critical systems, elevators, etc.
No. It only covers the utilities cost for common areas (i.e. Shared Facilities). A separate utility bill is sent for all utilities that are consumed inside the unit.
If you have not received your community management fee invoice then you are required to update your email and phone numbers urgently by visiting the community office or sending us an email at [email protected] . Effective 2019, invoices for community service charges are not being sent by post but only via email.
Delayed/non-payment of the Community Management Fee can potentially deprive your community of the funds required to continue the supply of essential services such as common area maintenance, air-conditioning, security, street lighting, and irrigation.
Defaulting on the community management fee, could incur a late payment penalty calculated at 1% of the outstanding. CMF defaulter awareness campaigns, as well as the suspension of non-essential services, have proved useful measures in boosting the collection of outstanding dues. In some cases, a debt recovery agency has been appointed to supplement the Community Management teams actions. Approvals for unit sales, rentals and alterations are also restricted until the outstanding community service fees have been paid.
The Community Management Fee is collected from all unit owners to cover the cost of the operation, management, maintenance and replacement of all assets and the provision of services in the Common Areas within the Community.