Real estate is property that is either land or land with improvements linked to it (building). Real estate is quickly becoming one of the UAE's fastest-growing businesses (UAE). As a result, the real estate business is today regarded as one of the most important contributors to the UAE's national economy. However, there are specific norms and regulations that real estate organizations must follow in order to continue their real estate activities within the UAE, particularly those performing real estate business in the emirate of Dubai. Today, we will go through the rules and regulations that apply to real estate enterprises in Dubai in great depth.
Real Estate Regulatory Agency (RERA) - RERA is the regulatory arm of the Dubai Land Department that creates rules and regulations for the Emirate of Dubai's real estate sector. RERA requires all registered real estate developers and projects to be audited in accordance with all applicable laws and regulations. Only RERA-approved audit companies are permitted to conduct audits of registered real estate developers and projects in Dubai.
Nadeem and Umendra Chartered Accountants are an RERA-approved audit firm well-known for delivering high-quality financial audits, developer project audits, bank escrow audits, and service charge budget assessments, all of which have become critical for RERA in order to lower service charges. Nadeem and Umendra Chartered Accountants employs competent audit and accounting specialists with years of expertise auditing real estate-related enterprises. Our audit team has extensive knowledge of the rules and regulations that apply to businesses operating in the real estate industry, so we can assist you in identifying and highlighting your weaknesses/problems, as well as recommending strategies and solutions to address the identified weaknesses/problems.
All registered developers are required by the government agency to create and maintain an ESCROW account, as well as appoint an auditor from the list of RERA certified auditors to carry out an audit and provide a report on the status of existing real estate projects. RERA also mandates developers who have registered with it to present an audit report on all finished projects on an annual basis. The aforementioned standards are an essential aspect of the agency's strategy for increasing the adoption of good governance practices by organizations participating in the Dubai real estate business.
In addition, the agency mandates all registered real estate developers to produce a cash flow audit report every six months. Developers who fail to reach the six-month deadline will face fines.
These audits assist real estate developers in gaining the trust of their consumers since the reports resulting from the audits give potential purchasers with assurance that the developers are not hiding anything from them or anybody else.
The following are the basic laws and regulations that apply to developers in the Emirate of Dubai:
The regulatory arm of the Dubai Land Department mandates all registered property developers and JOP/ Owners Associations to present verified financials comprising planned costs and revenues of their real estate projects for the creation of an ESCROW account.
RERA has the authority to supervise the activity of real estate developers and JOP/Owners Associations. It also has the authority to audit the financial records of Owners Associations and developers.
RERA requires ESCROW agents to establish and maintain accurate records of all ESCROW accounts' revenue and expenditures. If deemed appropriate, RERA may demand the gents to provide any sort of information in order for it to be inspected and audited by a licensed auditor.
Real estate audits have been divided into three major categories, which are as follows:
Our organization is well-known for conducting real estate audits for a variety of real estate enterprises operating in the UAE. We have years of expertise designing innovative and one-of-a-kind company strategies, recognizing and emphasizing various real estate difficulties, and giving solutions to those issues.
Nadeem and Umendra Chartered Accountants are an RERA-accredited auditor qualified to provide excellent audit services to Owners Associations, communities, and real estate developers in the Emirate of Dubai.
Our real estate developer and project services include the following: