RERA (Real Estate Regulatory Agency) is a government agency responsible for the formulation of rules and regulations for various real estate activities in Dubai. If you’re running a real estate company, you will need to undergo an annual RERA audit to continue running your business.
What is a RERA Audit?
Operational Audit
The examination of the control environment in which an entity carries on its business with the objective of increasing its efficiency and effectiveness.
Financial Audit
Financial audit includes the examination of:
- Total number of units sold, total cash received from buyers and number of units cancelled.
- Total amount received from financial institutions for the project.
- All payments including cost of land, registration fee, goods and services.
- All other payments including construction, management and marketing related expenses.
- Issuance of advances to contractors and other parties in cash.
- Issuance of advances to contractors and other parties in the form of bonds and other financial instruments.
- Retention money which should be equal to 5% of total funds received.
Compliance Audit
To review and verify that developers activities are in compliance with the laws and regulation defined by the Real Estate Regulatory Agency (RERA).
Any company undergoing business setup in Dubai will also need to undergo annual audits if they are based on the mainland or on the free zone.
RERA UAE Laws
- According to the DLD rules, the RERA will have all the rights to monitor and supervise the activities of developers and Owners Associations and audit their books of accounts and records
- Certified financial statements containing budgeted cost and revenues of the project should be presented for opening of Escrow account
- An Escrow agent must provide regular details of revenues and expenditures of his Escrow accounts. The department can demand from its Escrow agent to present any information or data at any time and the department can order for audit of such information from an independent auditor if it is necessary
- In case RERA cancels a project, RERA will appoint a certified auditor to examine the current financial position of the project, the total amount deposited into the Escrow account and verification of all expenditures
Let A&A Associate Handle Your RERA Audit
This is what we can do for you:
- Critically analyze and identify the project’s completion status according to the applicable rules and regulations
- As a registered firm with the Land Department, we assist RERA in developing audit reports for underdeveloped projects
- Perform real estate audits for completed and underdeveloped projects including financial, operational and compliance audits
- Perform internal audits to assist the developers to get an insight into their business financial health and identify the risky areas and provide solutions to overcome the risk factors.
FAQ’s
A RERA audit is conducted by thoroughly reviewing all the financial statements of a real estate company. You will need to submit these documents every year.
RERA is Dubai’s real estate government entity. It stands for Real Estate Regulatory Agency, and operates under the Dubai Land Department.
RERA registration is only possible once you complete the RERA exam. You can apply for a license through the Dubai Land Department (DLD) website.
Every real estate agent needs to have a valid RERA license to work in the country. Any agent found without a license will face penalties.
A RERA Dubai license will cost around AED 5,020. You can get this license only after you pass the RERA certification exam.
A RERA UAE escrow account is a bank account maintained by a real estate company which holds all the funds related to a specific project.
An annual RERA audit is necessary for every real estate company to maintain compliance. The audited statements will need to be submitted along with your license renewal application.
You can hire A&A Associate, a leading audit firm in Dubai to handle your annual RERA audit requirements. We can handle the entire process, and offer both internal and external audit services.
A Jointly Owned Property (JOP) is a piece of plot or unit that is shared between two or more individuals. The committee overseeing each JOP is selected by RERA.
