General
    beginner

    Why must management entities provide a bank guarantee?

    Ali Faizan Syed1 min read0 viewsUpdated 1/2/2026
    Article (36) requires every management entity to provide a bank guarantee in favour of the DLD. This guarantee serves as a security deposit to remedy any damage to common parts caused by the entity's negligence or omission. If the entity fails to fix such damage, RERA uses these funds to appoint another party to fulfill the requirements. This financial safeguard ensures that owners are protected from the costs of repairing damage caused by poor management practices.

    Related Topics:

    Bank Guarantee Dubai
    Management Negligence
    Security Deposit
    Was this helpful?

    Need More Clarity?

    Get personalized advice from Ali Faizan Syed, your trusted Dubai real estate consultant.

    WhatsApp ConsultationCall Now

    Related Questions

    Browse Categories

    LegalInvestmentFinancingMarketVisaTaxes