Service Charge Budget Review By RERA
In Dubai, every owners association governed by the Real Estate Regulatory Authority (RERA) is required to perform a service charge budget review. RERA was created to help the real estate sector become more transparent.
In accordance with RERA requirements for audit companies in the UAE, our squad of professionals at BUCHPRUFER CONSULTANTS supports service charge budget review assignments. We can communicate directly with the association managers on your behalf, verify the documents, and create budget review reports for your final review, saving you time and money. The following are the main activities that we perform for our clientele.
- Verification of annexures
- Verification of tender evaluation by association manager
- Verification of contracts with service providers
- Trade license verification – for service-line and validity
- Verifying the review disclosure checklist
- Compliance of RERA’s requirements and guidelines
- Communication with RERA for any clarifications
The service budget review is an important duty for RERA since it is vital to protect the interests of each property’s unit holders. The budget review is carried out in order to determine the service fee that will be collected from unit holders in the next year. The budget also provides an estimate of the costs associated with maintaining and securing a property’s shared spaces.
To work in the real estate industry, every builder and developer must register with the RERA. The primary objective of RERA’s service charge budget review in Dubai is to thoroughly evaluate the budgeted service charge figures and compare them to industry norms and regulations.
RERA has created “Mollak,” an online service system for all members of the sector. The purpose of this website is to ensure that the owners’ association is open and transparent. It’s used for a number of purposes, including tracking escrow money, service costs and even maintenance of company registration.
The online portal will play a bigger role in service charge budget reviews since the auditor to whom the budget review is to be submitted must be chosen by the Owners Association Management Company through Mollak with RERA Auditors or authorization. The Owners Association Management Company shall designate Jointly Owned Properties Auditors in accordance with RERA’s procedures and submit them for approval. The ultimate decision on whether or not to authorize the auditor is made by RERA.