The Real Estate Regulatory Agency (RERA) was established in 2007 to oversee the real estate development in the Emirate of Dubai. RERA immensely contributes to the development of real estate in the emirate of Dubai by providing a secure environment for the real estate projects, protecting the rights of developers and investors, exploring new real estate opportunities and promoting ethical and professional standards in the industry.
With these objectives, RERA has been, among others, entrusted with duties and powers to:
- Regulate audit and monitor Real Estate Developers Escrow accounts;
- Regulate and audit accounts relating to jointly owned properties (Owners associations);
- Accrediting financial intuitions and auditors for managing and overseeing the Escrow accounts;
- Accrediting financial intuitions and auditors for managing and overseeing the audit of jointly owned properties.
The scope of work of assignments performed by an accredited auditor in this regard includes:
Audit of Escrow accounts
(This is required for all projects that are in progress as at 31 December of the year unless the project is completed or cancelled before this date)
- Reconcile units sold as per developer records to Oqood system;
- Reconcile collections made against sold units as per developers records to Escrow account;
- Verify if any collections have been deposited in developers corporate account and not in Escrow account;
- Communicate discrepancies if any with RERA on a timely manner.
Audit of jointly owned properties (owners association)
- Audit of financial statements of Owners association;
- Analysis of variances from budgets for the year under review;
- Review of budgets prepared by the management company for the next financial year;
- Review of service charges collected and outstanding from unit owners as at the yearend;
- Review of proposed service charges for the next financial year.
Since the introduction of the Real Estate Law in 2007, PKF UAE has been an accredited auditor with RERA.
RERA has been particular as regards the timelines for each assignment. As a long-standing partner with RERA, PKF UAE has consistently delivered services to its clients and RERA on a timely basis. PKF UAE has to its credit a portfolio of reputed developers and financial institutions with whom it has worked in the past. Further there is a dedicated team experienced in handling similar assignments.
How can PKF UAE help:
If you are a developer undertaking a real estate development project in the UAE, we can perform the procedures required by RERA on the project collections report and report to RERA on your behalf.
RERA generally updates the scope of work for each year in November/December and requires the reports for the period to December to be submitted by following February/March.
Starting the process early can be a key to ensure that the timelines specified by RERA can be met and any non-compliance is avoided.
For Owners Association
RERA oversees the appointment of auditors for Owners Association and as an accredited auditor with RERA, PKF can provide audit services to the Owners Association
PKF UAE, a reputed accounting firm in Dubai, is a member firm of PKF International, providing audit and assurance services along with entry strategy, company formation, risk advisory, tax consulting & compliance, accounting & business advisory and corporate finance.
You can contact us at email@example.com for further details.