Real Estate Regulatory Authority (RERA) Audits

The Real Estate Regulatory Agency (RERA) is a government organization that is responsible for regulating the real estate industry in the UAE. In order to ensure compliance with RERA regulations, all real estate companies are required to undergo regular audits. In this article, we will take a closer look at what RERA audits are and what you can expect from the process. Real Estate investment is one of the most prominent business sectors and a rapidly emerging market owing to its increasing growth rate of GDP and per capita income. Marking its presence in the UAE with its unprecedented growth, the real estate industry has positioned itself as a major contributor to the national economy. While this sector offers innumerable opportunities, it also includes a myriad of complexities. To ensure its sustained growth in the economy, the Real Estate industry must be well structured with advanced technology and in compliance with global standards. Some real estate projects employ specialized lawyers or consultants to meet the challenges in the industry and expedite the process of registration and establishment. 

What is a RERA Audit?

A RERA audit is an inspection conducted by the RERA to assess the compliance of a real estate company with the regulations set by the agency. The audit covers a wide range of areas including, but not limited to, financial management, project management, customer service, and marketing. The purpose of the audit is to ensure that real estate companies are operating in a transparent and fair manner, and that they are providing their customers with the best possible service. We are recognized as a premier real estate accounting and consulting firm. Our member firms are well-known for devising innovative strategies, identifying and analyzing complex real estate problems, and recommending viable solutions.We are approved and listed auditor with Dubai Land Department to provide the services for the real estate businesses and arrangements.

What Happens During a RERA Audit?

During a RERA audit, the RERA inspector will review the company's records and processes to ensure that they are in compliance with the regulations set by the agency. The inspector will also interview employees and conduct site visits to assess the company's operations. The auditor will then provide a report detailing the findings of the audit and any areas that need to be improved.We possess tactful skills to analyse the project’s growth and its compliance with the applicable relevant laws. We have also assisted Real Estate Regulatory Agency (RERA) in developing the reporting process of Escrow Accounts audits for unfinished/under develop real estate projects.We have been approved to review, study and analyse the service charges budget for the Associations to ensure that it has been prepared feasible as per the current competitive market offering.

Benefits of RERA Audits

Undergoing regular RERA audits has several benefits for real estate companies. Firstly, it helps the company maintain compliance with RERA regulations, which is essential for avoiding legal consequences. Secondly, it provides an opportunity for the company to assess its own operations and identify areas that need improvement. Finally, undergoing RERA audits can increase the company's credibility and improve customer trust.

Preparing for a RERA Audit

To prepare for a RERA audit, real estate companies should ensure that all their records are up to date and easily accessible. They should also review their processes and procedures to ensure that they are in compliance with RERA regulations. Additionally, it is important to appoint a designated employee to handle the audit process and ensure that all relevant information is provided to the RERA inspector.

What to Expect from the RERA Audit Report

The RERA audit report is an important document that details the findings of the audit and provides recommendations for improvement. The report should be comprehensive and include all areas that were reviewed during the audit, including financial management, project management, customer service, and marketing. The report should also outline any areas that need improvement and provide recommendations for how to address these issues.

Importance of Acting on RERA Audit Recommendations

It is important for real estate companies to act on the recommendations provided in the RERA audit report. This is because failing to address issues identified in the report can result in legal consequences and can negatively impact the company's credibility and reputation. Additionally, implementing the recommendations can help the company improve its operations and provide better service to its customers.

The Role of RERA in Regulating the Real Estate Industry

RERA plays a crucial role in regulating the real estate industry in the UAE. By setting standards and conducting audits, RERA helps to ensure that real estate companies are operating in a fair and transparent manner. Additionally, RERA provides a mechanism for resolving disputes between real estate companies and their customers, which helps to maintain a stable and predictable business environment.

RERA's Impact on the Real Estate Industry

RERA's regulatory role has had a positive impact on the real estate industry in the UAE. By setting standards and conducting audits, RERA has helped to increase transparency and credibility in the industry. Additionally, RERA's enforcement of regulations has helped to prevent unethical practices and has ensured that real estate companies are providing customers with fair treatment. Our client roster includes the real estate divisions of some of the largest commercial banks, owners’ association management companies and Developers. Or partners have special expertise in servicing real estate clients and are attorneys as well as certified public accountants. Our branches have represented clients in highly complex real estate trans-actions, including refinancing, joint ventures and lease negotiations- amounting to billions of dollars. We have the technical know-how and insights to ensure your organization continues to grow in the competitive market.

Our Services include:

• Partnership structuring and profit-sharing arrangements. 
• Compliance with taxation laws.
• Private taxation services for the partners.
• Mollak services
  
• Budget reviews for Associations
• Unit balance verification
• Special Levy reviews
• JOP Escrow Account Audits for Banks