Over the next few months, home owners in Dubai will be given the right to manage their buildings and finances. RERA (Real Estate Regulatory Agency) is signing deals with local banks, making way for Interim Owners Associations (IOAs) to open bank accounts within a few months.
According to Mohammed Khalifa bin Hammad, Senior Director, RERA, deals will be signed with three local banks, but, being an entirely new service, the banks will be given some time to fine tune themselves.
The delay by IOAs in gaining legal status is primarily due to associations failing to submit the common area site plan. This is mandatory, and has to be submitted along with Jointly Owned Property Declaration, copy of Annual General Meeting and code of conduct certificate for IOA members from the local police.
He revealed that, on opening the bank accounts, IOAs will not be allowed to do any transactions by cheque or cash, and that it will be a bank to bank transfer. The banks will have to check and ensure that the invoice raised by owners association is to an authorized service provider for the building.
Further, in order to help the existing IOAs in gaining legal status, the agency will grant exemptions, allowing them to operate bank accounts. The IOAs will have to meet certain conditions, after which, a letter may be issued to open a bank account. But, the manner of implementation of plan is yet to be decided, Hammad said.