UAE-based newspaper reports that Interim homeowners associations will be able to open and operate bank accounts in the next few months with the Real Estate Regulatory Agency (Rera) set to ink memorandum of understandings (MoUs) with three local banks.
“We will soon be signing MoUs with three local banks. Since it is an entirely new service that the banks will have to provide, we have to give them time to fine tune themselves with our regulations. Hence, it will take some months for us to issue letters to IOAs which will allow them to open bank accounts,” Mohammed Khalifa bin Hammad, Senior Director, RERE told the newspaper.
The names of the three banks were not revealed. This comes at an opportune time for banks which have been feeling the pinch after Central Bank regulations put limits on the fees they could charge for credit cards and loans.
However, Mohammad Khalifa Bin Hammad, the Head of Real Estate Relations Management, Rera told Gulf News earlier this year that Property Owners Association (OA) members in Dubai will have to get a ‘good conduct certificate’ from police before they take charge.
“They have to submit a common area site-plan, a jointly-owned property declaration, good conduct police certificate and minutes of the annual general meeting (AGM),” he told the newspaper.
The creation of homeowners associations comes at a time when owners are complaining that some developers are charging ever higher maintenance fees for buildings.
“Both the Owners Association and the Individual Members (Unit Owners) are responsible for the property management of the building. Every owner of a unit has the responsibility of maintaince and repairs to their own individual property according to the rules and regulations of their building. No changes or additions can be made to an individual lot without approval from the Owner’s Association,” Rera says on its website.
“Matters such as collection and banking of the annual maintenance fees from lot owners, the financial administration, payment of accounts (electricity, lift maintenance, municipality charges / fees, etc, management of repairs, and general maintenance of the building common areas, insurance of the building and the common areas, entering into contract agreements, ensuring the safety of owners occupiers and visitors to the building, improvements to the building all come under the functions of the Owners Association and is administered and carried out by the Committee representing the Owners.”
