The signing of MOU with RERA

Land deals are a very capital intensive investment that firms and individuals partake in due to its security. As a result, real estate is a prominent business that has rapidly emerged as a market leader within the UAE. While real-estate serves as a lucrative investment, it is also complex and presents several risks. Hence, to ensure that the real estate sector functions correctly, governments need to put several checks in place. The UAE recognized the need for a monitoring regulatory authority for its real estate sector. Thus, the Dubai Land Department gave rise to the Real Estate Regulatory Authority.

The RERA oversees and regulates all real estate dealings and transactions within the UAE. To ensure that companies and individuals follow mandated rules, the RERA has made several documents and processes mandatory. KGRN is proud to announce that it has signed an MoU with the RERA to assist companies with maintaining compliance. As a result of this MoU, KGRN will now function as RERA-approved auditors within the UAE. In this article, we will take a closer look at what this means and how KGRN can help you with your real-estate related needs.

What is the need for the RERA?

Real estate involves all transactions and deals that involve the buying or selling of land or buildings. The UAE gave rise to the RERA to help improve the accountability and transparency of the real-estate ecosystem within the nation. Setting up such an organization will help the UAE regulate and monitor all large-scale real estate projects within the country. Furthermore, to improve the overall accountability of developers, the RERA requires the mandatory audit of specific registered real-estate projects. All these measures will help prevent fraud and mismanagement within the real estate sector in the UAE.

For enquiries, call +971 45 570 204 / E-mail: support@kgrnaudit.com

What are the components of a RERA audit?

The RERA audit usually consists of the following three segments.

  1. Operational Audit: Examination of the control environment to improve efficiency.
  2. Financial Audit: Examination of cash received, units sold, the amount borrowed and payments made by the developer. It also audits the issuance of advances to parties and contractors in cash or bonds.
  3. Compliance Audit: Ensure that developers comply with the regulations laid out by the RERA.

How does the MoU impact KGRN?

Since the RERA mandates specific audits on an annual basis, companies will have to seek accounting firms to complete their audits. Such firms must have prior RERA approval to ensure the company meets the required compliance. Hence, the MoU will help KGRN reach out and assist more companies than ever before. Furthermore, since we are a part of a few, esteemed RERA-approved auditors, KGRN can provide companies with reliable and credible audit reports.

The MoU makes KGRN an official Budget Reviewer for the RERA, providing us with the patronage of Sheikh Mohammed bin Khalifa Al Maktoum. The highly esteemed member of the royal family serves as the Chairman of the Dubai Land Department and has been vocal in his support for the RERA. Through the MoU, KGRN now has the power to audit Escrow Accounts and ensure that real estate developers maintain compliance.

Here’s something you need to know: Everything about Dubai RERA and DLD Laws

For enquiries, call +971 45 570 204 / E-mail: support@kgrnaudit.com

What services can RERA-approved auditors provide?

Some of the standard services that RERA-approved auditing firms provide are as follows;

  1. Auditing of Escrow Accounts
  2. Service charges Audit
  3. Master community Audit
  4. Taxation law compliance
  5. Trust account compliance
  6. Partnership structuring
  7. Profit-sharing arrangements.
  8. Service entity management
  9. Budgeting
  10. Mollak services
  11. Budget reviews
  12. Special Levy reviews

Check this blog out: What Investors need to know about RERA in Dubai

Why KGRN?

KGRN’s team of highly professional auditors will be able to help you with all your real estate accounting needs. We also keep ourselves updated regarding changes in RERA laws. Hence, you will never have to worry about changing rules as we will help you stay abreast at all times. Being a renowned accounting firm within the UAE, KGRN also has the experience required to handle all your real-estate related disputes and issues.

We can also help you with all the mandatory RERA auditing as we have a team of auditors who have sound knowledge of Emirati real estate law. So, what are you waiting for? Make sure you stay on the right side of the law by partnering with KGRN for all your RERA-related accounting and auditing needs.

 

For enquiries, call +971 45 570 204 / E-mail: support@kgrnaudit.com



Leave a Reply

WhatsApp chat