Common use of Estimated Building Service Charges and First Provisional Building Service Charge Clause in Contracts

Estimated Building Service Charges and First Provisional Building Service Charge. (a) The Seller has provided an Estimated Building Service Charge Rate as AED14 which reflects the Seller’s current estimation as to the rate by which Building Service Charges will be calculated in the first year following Completion. (b) The Seller discloses and the Purchaser acknowledges and agrees that the Seller may vary the Estimated Building Service Charge Rate prior to Completion to reflect the actual rate upon which the First Provisional Building Service Charge will be raised, which, for the avoidance of doubt, may be higher than the Estimated Building Service Charge Rate. (c) If, upon determination of the actual expenses of the Seller for the period from the Completion Date to the end of the first service charge period, the Purchaser’s Building Service Charges: (i) exceed the amount already paid as the First Provisional Building Service Charge, the Purchaser must pay the excess on demand; or (ii) are less than the amount already paid as the First Provisional Building Service Charge, shall DRAFT