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Fri 23 Dec 2011 10:43 AM

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Dubai's RERA approves more firms for audit checks

Total of 22 companies now approved to carry out audits on property projects

Dubai's RERA approves more firms for audit checks
A total of 22 audi firms have now been approved by RERA to carry out checks on real estate projects

Dubai's real estate regulator has added a further four companies to its approved list to carry out audits on property projects in the emirate.

The Real Estate Regulatory Authority (RERA), the regulatory arm of the Dubai Land Department, said it has now accredited 22 auditing firms to conduct financial auditing of projects.

The step is part of RERA's strategy to enhance transparency in the real estate sector, thus strengthening investor confidence, RERA said in a statement.

Khalid Obaid Al Mutaiwei, senior director of the Real Estate Development Trust Account Department at RERA, said: "We perceive this move as a milestone in implementing the standards of financial auditing to the real estate sector in accordance with best practices in auditing real estate companies and projects."

RERA has inked cooperation agreements with the 22 approved audit firms to examine real estate projects exclusively registered with RERA.

"Auditing will significantly facilitate the work of project trustees by preparing solid financial reports on real estate projects sold on the map," added Al Mutaiwei.

Last month, RERA said it had initially approved  18 auditing firms to conduct financial checks.

Dubai said in October that the world's first governance charter for real estate developers, aimed at improving transparency in the sector, would be implemented by January 2013.

The Dubai Land Department (DLD) said it had launched the draft document with the blessing of ruler Sheikh Mohammed bin Rashid Al Maktoum.

Over the next three months, real estate companies will be educated about what the charter means, prior to putting the final touches on the final draft.

The charter proposal is part of nine initiatives launched by the Department to spur a recovery in the emirate's battered property market where prices have slumped more than 50 percent from peak levels.

Richard 7 years ago

I am buying an apartment in Sunset Gardens B
And I am told that most of my money has gone from the Escrow account to pay for the land that my apartment sits on,its just been taken and now that the land is worth much less than it was its like I have next to nothing it seems,so if Sunset Gardens is canceled I have nothing as there is no building 4 years on,So I am thinking that my 467000 Dirhams and my property registration payment of 5000 Dirhams may have little value,
I did think I was buying an apartment in a building as sold to me I was wondering if the land department could help to put our minds to rest on this and tell us our money is safe,to me its a lot of money and I am only a small home buyer in the sun. And people should be told they are buying the land under the building which may go up and down in value.
I was waiting for part of the building to be put up then a payment from my escrow account would be made but I think I am wrong.