RERA Audit Services in Dubai
RERA audit services are a mandatory requirement for every real estate business or project listed under the Real Estate Regulatory Authority (RERA) within the jurisdiction of Dubai.
We, at Al Mushthary, offer reliable RERA audit services implemented by accredited RERA auditors within the region of Dubai.
Recognized as an established auditing firm in the United Arab Emirates, we guarantee adherence to all the relevant laws and regulations, as well as assisting companies in upholding fair and correct financial reporting. As an accredited Dubai Land Department auditor, Al Mushthary offers extensive RERA audit and RERA budget review services to real estate companies, development, and management associations.
As a RERA-approved audit firm, we possess the rights to examine and evaluate the service charges’ budget of associations in Dubai to ensure that it has been prepared as feasible as per the current competitive market offering.
Understanding RERA Audit
The Real Estate Regulatory Agency (RERA) is a government agency entrusted with managing and overseeing the real estate sector in the UAE. To comply with RERA's guidelines, all real estate companies must conduct periodic audits.
Real estate investment is one of the most promising and rapidly expanding business sectors in the Emirates of Dubai, which helps in enhancing GDP and per capita income. The industry has experienced tremendous growth, becoming one of the most important economic drivers. However, in addition to its opportunities, the real estate industry has many complexities.
To ensure sustainable growth and adherence to global standards, the real estate industry requires a strategic framework, technology, and regulations. The real estate sector demands a strategic framework, technology, and regulation to achieve sustainable growth while complying with global standards. Most real estate projects employ knowledgeable consultants and legal professionals to deal with issues in the industry, expedite their registration, and ensure the smooth execution of their projects.
What do you understand by RERA Audit?
A RERA Audit can be described as an audit provided by the Real Estate Regulation Agency to check the verification of real estate companies by in-depth scrutiny of their follow-up guidelines. Such scope can cover several areas: financial management, execution of projects, customer service, and marketing practices. The RERA audit mainly aims at checking transparency, fairness, and excellence in service delivery in the real estate sector.
Al Mushthary is a well-recognized company in real estate accounting consultancy and a problem solver to get an expert solution related to complicated industrial issues. We are authorized listed auditors of the Dubai land department and we customize tailored audit services to real estate as the requirement to enable compliance and excellent performance under operation processes.
Information regarding the RERA Audit Process
A RERA audit is a thorough examination of all documents, processes, and operations undertaken by a real estate agency for compliance with the regulations of this agency. During the audit, the inspection is done by thorough visits where the inspectors check all company documentation, interview with employees, and finally carry out an on-site visit to evaluate operations. The complete report reviews the inspection findings and recommendations for improvement that are finally submitted after the audit is completed.
Our seasoned professionals at Al Mushthary have expertise in project growth assessments and evaluations of compliance or regulations. As approved auditors, we validate, analyze, and review service charge budgets from associations, ensuring these are competitive and communicable as per the current market understanding.
Benefits of RERA Audits from Real Estate Companies
RERA Audit can provide multiple benefits to real estate companies.
First, they ensure adherence to the RERA guidelines and avoid legal implications arising due to non-compliance with these regulations. Second, such an audit helps the companies examine their activities and identify spots where improvements and optimization are necessary. Third, these audits increase the credibility of a firm and, thereby, foster increased customer confidence and promote a better business reputation in the marketplace.
Effective preparation of RERA Audit
The preparation of the RERA Audit includes the process of organizing and analyzing, making all the documents accurate and accessible. Internal process reviews should be done to assess whether real estate companies comply with the RERA regulations. Another important factor for smooth auditing and coordination with the RERA inspector would be to appoint a dedicated employee who will handle the audit process.
We, at Al Mushthary, assist our clients in undertaking RERA audits wherein our skilled professionals verify all documents and processes associated with regulatory standards. Our team identifies gaps in compliance and also aids the operations in streamlining processes for RERA requirements thereby simplifying the audit process.
The RERA Audit Report
The RERA Audit report is an important document providing a detailed review of information about findings from the audit in the areas of financial management, project management, customer relations, and marketing. This encompasses indications of non-compliance and actionable recommendations to enhance operations.
Importance of RERA Audit findings
Real estate companies must implement the identified steps or actions directed through the RERA audit report. If anyone fails to comply with the regulations, it would result in legal challenges, harm the reputation of the company, and build distrust among the stakeholders. On the other side, such problems can sometimes lead to increased operational effectiveness, enhanced customer satisfaction, and a good corporate image.
Critical Role of RERA in Regulating the UAE Real Estate Market
The Real Estate Regulatory Agency (RERA) plays a vital role in the regulation of the real estate market in the UAE. RERA audit provides a clear, compliant, and fair system through proper industry standards and regular inspections. RERA takes part in solving disputes between real estate companies and their customers to create a stable and credible atmosphere for conducting business.
Essential RERA Audit Services for Real Estate in Dubai
In Dubai, the real estate project developers, owner associations, and property managers under a joint ownership scheme are mandated to have their escrow accounts, understanding of financial position, and service charge plans verified by an auditor on an annual basis for every active project. RERA has the goal of promoting good governance, ensuring accountability, and building investor confidence in the real estate sector in Dubai.
The major benefit of conducting RERA audits is maintaining the credibility of the real estate through regular financial audits.
Al Mushthary: Leading RERA Auditors in Dubai
Al Mushthary is one of the leading RERA-approved auditors based in Dubai. Our qualified RERA auditors specialize in providing key areas such as Escrow Trust Accounts, Jointly Owned Properties, and Developer’s Progress Status. Having a rich background in conducting audits prescribed by RERA, we are committed to providing the best RERA audit services in Dubai with the utmost integrity, accuracy, and adherence to the law on each project.
We have vast experience in services rendered to real estate businesses, developers, property managers, etc. and they include:
- Mollak Services
- Budget Review Services
- Escrow Account Auditing
- Budget Reviews as per RERA Guidelines
- Audit of Financial Statements for Owners' Associations
- Audit of Service Charges
- Unit Balance Verification
- Management Accounting
- Trust Account Services
- Special Levy Reviews
- Master Community Audits
RERA Audit Services in UAE
RERA Audit services play a critical role in building a strong relationship between real estate developers and their customers. This is achieved through the process of conducting proper audits that ensure that the developer is not hiding any financial aspects from the potential buyers so that they are treated with respect even when all the details about the project including finance and progress are accessible. Our experienced RERA auditors acquired valuable knowledge and skills to evaluate the progress of real estate projects ensuring the laws and regulations are set by RERA.
We deliver precise and comprehensive audits to all RERA standards and requirements, which enable developers to remain compliant, and transparent, build trust, and encourage confidence from investors and buyers.
Types of RERA Audit
All real estate enterprises and ventures registered with the Real Estate Regulatory Agency (RERA) in Dubai are subject to a RERA audit. Al Mushthary being a registered and listed auditor with the Dubai Land Department (DLD) is fully competent to offer complete auditing services for real estate businesses and associations. The RERA audit is divided into:
Stage 1: Operational RERA Audit
The Operational RERA Audit is designed to evaluate business operational processes to improve their efficiency and support RERA compliance. The scope of this audit is inclusive of:
- Assessment of Records in the Trust Account System maintained by RERA.
- Assessment of Cash Receipts by the developers and account trustee.
- Assessment of Disbursements from the Trust Account to verify that the finances are allocated and utilized appropriately.
Stage 2: Financial RERA Audit
The primary objective of the Financial RERA Audit is to investigate the financial position of the real estate undertaking. This comprises the following:
- Sales Transactions Review: Analysis of the total number of sold units, the amount of money received from the buyers, and unit sales statistics.
- Financial Audit: Detailed review of revenues and expense statements of the project.
- Funds Assessment: Estimation of the total amounts received from the financial institutions for the project.
- Payments Assessment: Make sure all the payments such as land cost, registration cost, construction, and marketing are properly supported with documents.
- Advance Issuances: Issuing bonds or other forms of financial tools as advances of contractors or third parties for various works, which are reviewed.
- Retention Money: Confirmation that retention money is equal to 5% of the overall funds.
Stage 3: Compliance RERA Audit (For Completed Projects)
The Compliance RERA Audit concentrates on examining and confirming that all activities conform to RERA’s policies and practices. This stage encompasses:
- Audit of Financial Statements of Owners’ Associations
- Audit of Service Charges
- Budget Reviews as per RERA’s Specified Scope
- Unit Balance Verification
- Mollak Services
- We examine project completion status from the perspective of RERA’s prescribed rules and regulations, informing the developers on the progress of the project.
- Development of Audit Reports for Underdeveloped Projects
- To ensure compliance with the standards set by RERA, we carry out comprehensive audits of completed and ongoing projects in all of their financial, operational, and compliance dimensions.
- With the help of internal audits, we can assess the financial status of your project and assist in identifying risk areas and furnishing feasible recommendations to eliminate any possible financial and operational threats.
Service Charge Budget Review – RERA Compliance and Best Practices
Service charge budget review is one of the major requirements imposed by the Real Estate Regulatory Agency (RERA) on all property managers of jointly owned properties in the emirate of Dubai. This audit goes beyond the service charge budgets ensuring their accuracy and also checking compliance with RERA’s regulatory instructions in the industry.
Purpose of Service Charge Budget Review
- Evaluate the Accuracy of Budgeted Figures
- Ensure Compliance with RERA Guidelines
- Benchmarking Against Industry Standards
- Transparency and Accountability
Mollak - Jointly Owned Property Service Charge Audit
The Mollak system represents an important regulatory instrument developed by RERA which aims at the control over the management of jointly owned property in Dubai. One of the primary obligations stipulated by the RERA regulations is an audit of the service charges applicable to the properties. Its primary objective is to enhance transparency and accountability in the utilization of funds collected from the property’s owner for the common infrastructure services.
Purpose of Mollak Service Charge Audits
- Ensure Compliance with RERA Guidelines
- Review Financial Health
- Identify and Address Discrepancies
- Provide Transparency
- Expert Audit Services for All Property Types
We deliver Mollak service charge audits for a wide range of property types, including:
- Commercial Developments
- Retail Properties
- Residential Villas and Apartments
- Master Community Developments
Partner with Al Mushthary for RERA Audit
Al Mushthary is one of the most trusted partners with the consultancy providers of RERA, with extensive years of experience in the industry. We provide one-stop solutions to real estate developers, investors, agents, allottees, financial institutions, and industry associations by our expertise and uncompromising commitment to quality.
Our professional experts are so well equipped with experience related to complying with the Real Estate (Regulation and Development) Act, 2016 RERA while streamlining the standard of regulatory compliance as well as satisfying the client to achieve the goals and objectives.
The 7 reasons why you should outsource RERA Audit with Al Mushthary:-
- Certified RERA Audit Expertise: Al Mushthary is a licensed RERA Audit Firm having extensive experience in conducting audits for real estate builders, property managers, and owner associations in Dubai.
- Compliance with RERA Regulations: We conduct audits by complying with RERA standards provided that the audit meets all regulatory standards to avoid penalties and non-compliance issues.
- Precise examination of Service Charge Budget: Our team undertakes deep assessments of service charge budgets for joint property ownership or jointly owned property (JOPs), ensuring every item and expense is justified, reasonable, and benchmarked.
- Enhanced Financial transparency: Partnering with us enhances, bringing confidence to stakeholders such as investors, unit owners, management companies, and regulatory bodies.
- Professional Team of Auditors: Our team of professional auditors combines critical thinking with industry-oriented results that provide extraordinary service to our clients.
- Comprehensive Audit Report: We provide a comprehensive audit report with complete verification of the feasibility of service charges and rent within the regulatory framework to minimize disputes or adjustments.
- Proven Track Record: Al Mushthary has a wealth of experience in the area of real estate and a proven track record in helping clients achieve and maintain operational success while complying with RERA standards.
- Boost Shareholder Confidence: By providing reliable and accurate audit outcomes, we instill confidence among various stakeholders which include developers, property owners, investors, and regulatory authorities; thus ensuring accountability and transparency.
With the changing regulatory landscape, we are committed to keeping our clients up to date and remaining compliant throughout. The renowned real estate firm relies on our multidisciplinary team for the complete spectrum of advice in areas such as finance, marketing, legal, and operations.
Our experienced team understands the personalized needs of each client with a personal approach and keeps themselves abreast of the latest RERA updates. We provide comprehensive support and guidance from the beginning of a real estate project to the registration and reporting of a real estate project for compliance and successful execution.
In search of dependable and competent RERA audit services in Dubai? Get in touch with Al Mushthary immediately.
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