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What Is a Real Estate Audit?

A real estate audit is an independent examination of a real estate business’s financial records, escrow accounts, and operational compliance with RERA regulations. It confirms that funds are properly received, held, and spent in accordance with approved project plans and applicable UAE law.

Real estate audits are distinct from strata and Owners Association audits, which focus specifically on service charge accounts for completed, jointly owned properties. Real estate audits more commonly apply to developers managing project funds during construction, property management companies handling client accounts, and brokers managing deposits and commissions.

Legal Framework: Law No. 8 of 2007 and Escrow Account Requirements

Real estate audits in Dubai are governed primarily by Law No. 8 of 2007, which regulates escrow accounts for real estate development in the emirate. Under this law:

Developers must deposit investor funds into a regulated escrow account, separate from the developer’s general operating funds.
Escrow funds cannot be used for purposes unrelated to the specific project they were collected for.
Funds are released to the developer only upon verified completion of construction milestones.
Every active project must be independently audited annually, with the audit report submitted through RERA’s Trust Account System (TAS), which records all financial transactions associated with the project.
Opening an escrow account requires submission of the R/T/02 project cash flow statement, a specific RERA-mandated reporting form.

Audited financial statements produced for RERA compliance also form the basis for corporate tax calculations under Federal Decree-Law No. 47 of 2022, making accuracy in the underlying audit increasingly important beyond real estate compliance alone.

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From statutory requirements to specialist investigations, Farahat & Co. offers a full range of audit services tailored to your industry and compliance needs. Browse our audit services below to find the right fit for your business.

Who Needs a Real Estate Audit?

Real estate audits apply across several types of businesses operating in Dubai’s regulated property sector:

Developers: required to have project escrow accounts, bank records, and fund utilisation audited annually for every active project, to prove compliance and build investor confidence.
Property management companies: required to validate accounting accuracy and service charge reasonableness for the communities and buildings they manage.
Real estate brokers: required to confirm that client deposits and commission records are properly handled and documented in line with DLD regulations.

Without a valid, current real estate audit, developers and property-related businesses can face difficulty renewing registration or continuing certain regulated activities.

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Types of Real Estate Audits by Project Stage

RERA audits are generally categorised based on where a project sits in its development lifecycle.

Operational readiness audit
Conducted early in a project’s life, this audit evaluates the developer’s operational readiness, including internal controls across project and financial management, marketing and sales practices in line with RERA advertising regulations, and proper setup of the project’s escrow account.
Fund utilisation and progress audit
Conducted during active construction, this audit assesses the project’s financial health and progress, confirming that funds are used in accordance with approved plans and budgets, and that service charge calculations for the eventual Owners Association comply with RERA requirements.
Completion and trust account audit
Conducted for completed projects, this audit reviews the full trust account history for the project and supports the transition to standard Owners Association reporting once the development is handed over.

How to Do Real Estate Audit for Property Management Companies

Our Real Estate Audit Process

Our real estate audit follows a structured process aligned with RERA’s expectations for escrow and project compliance reviews.

Engagement and scoping: we confirm the audit scope, timeline, and deliverables through a formal engagement letter.
Document collection: we gather project registration documents, buyer payment schedules, escrow account details, and financial records.
Analysis and testing: we examine fund transactions, vendor payments, and compliance with escrow requirements, including site verification for ongoing projects where relevant.
Reporting: we prepare the audit report in RERA’s required format, along with a management letter highlighting any compliance issues or control gaps.
Submission: the completed report is submitted through the DLD’s digital portal via a registered RERA auditor account.

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What Documents Are Needed for a Real Estate Audit

Documents Required for a Real Estate Audit

Standard documentation for a real estate audit typically includes:

Project registration documents and escrow account records
Buyer payment schedules and sales agreements
Bank statements for escrow and operating accounts
Service charge budgets and calculations, where applicable
Contracts with vendors, contractors, and service providers
Internal control and financial management procedures
Prior year audit reports, where available

What Real Estate Clients Say About Our Audit Services

We were looking for a reliable firm to support our audit and assurance requirements, and Farahat & Co. exceeded our expectations. Their team was professional, approachable, and kept us informed throughout the process. It was a smooth experience from start to finish.

Omar Rashid

Managing Director

Farahat & Co. handled our external audit efficiently and professionally. Their team was responsive, well-organized, and easy to work with. We appreciated their clear communication and timely completion of the engagement.

Sarah Khan

Finance Manager

The internal audit process was conducted in a structured and practical manner. The team took the time to understand our operations and provided valuable insights. We found their approach professional and constructive.

Mohammed Al Zaabi

Operations Director

We engaged Farahat & Co. for a forensic audit assignment and were impressed with their professionalism and attention to detail. Their team handled the matter with discretion and provided clear findings that helped us move forward confidently

Faisal Ahmed

General Manager

The team was extremely supportive throughout our tax audit requirements. They answered our questions promptly and guided us through the process with clarity. Their expertise and responsiveness made a real difference.

Aisha Rahman

Accounts Manager

Farahat & Co. assisted us with due diligence during an important business transaction. Their team was thorough, professional, and easy to communicate with. We were very satisfied with the quality of their work.

Rajesh Nair

Investment Manager

We had a positive experience working with Farahat & Co. on our strata audit requirements. Their team was knowledgeable, organized, and delivered the work on time. We would gladly recommend their services

Khaled Mahmoud

Property Administrator

The audit engagement was managed professionally from beginning to end. The team was cooperative, detail-oriented, and always available when we needed assistance. We appreciated their commitment to quality service.

Noor Hassan

Property Manager

Farahat & Co. conducted our inventory audit in a smooth and efficient manner. Their team worked closely with our staff and ensured minimal disruption to our operations. Overall, it was a very positive experience

Imran Sheikh

Supply Chain Manager

We approached Farahat & Co. for ICV audit support and found their team highly professional and knowledgeable. They guided us through the requirements clearly and completed the engagement efficiently

Ahmed Al Falasi

Business Development Manager

During a challenging phase of our business, Farahat & Co. provided excellent support with the liquidation audit process. Their team was responsive, professional, and handled everything with care and efficiency

Priya Menon

Company Director

Why Choose Farahat & Co. for Real Estate Audit Services

Farahat & Co. is a RERA-approved auditor with extensive experience supporting developers, property management companies, and brokers across Dubai’s real estate sector.

RERA and DLD approval: listed and approved to conduct real estate audits for registered developers and projects
Escrow account expertise: direct experience with Law No. 8 of 2007, TAS reporting, and R/T/02 cash flow submissions
Full-sector coverage: audits spanning developers, property management companies, and licensed brokers
Coordination with related services: our real estate audit work connects directly with our Strata and Owners Association Audit services for completed projects transitioning to standard OA reporting
Established track record: over four decades supporting UAE businesses across audit, accounting, and regulatory compliance

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Real Estate Audit Services: Frequently Asked Questions

What is a real estate audit?

A real estate audit is an independent examination of a real estate business’s financial records, escrow accounts, and operational compliance with RERA regulations, confirming that funds are properly received, held, and spent in line with approved project plans.

Is a RERA audit mandatory for developers in Dubai?

Yes. Under Law No. 8 of 2007, developers must have their project escrow accounts, bank records, and fund utilisation audited annually for every active project.

Who needs a real estate audit in the UAE?

Real estate audits are required for developers managing escrow accounts, property management companies handling client and service charge accounts, and licensed brokers managing client deposits and commissions.

What is the Trust Account System (TAS)?

TAS is RERA’s system for recording all financial transactions associated with a real estate project, ensuring escrow account activity is properly tracked and reported for annual audit purposes.

What is the R/T/02 form?

The R/T/02 is the RERA-mandated project cash flow statement required when opening an escrow account for a real estate development, forming part of the ongoing audit and reporting requirements for the project.

What is the difference between a real estate audit and a strata audit?

A real estate audit typically applies to developers, property management companies, and brokers, focusing on escrow accounts and project compliance. A strata audit applies specifically to completed, jointly owned properties, focusing on Owners Association service charge accounts under Law No. 6 of 2019.

What documents are required for a real estate audit?

Standard documentation includes project registration documents, escrow account records, buyer payment schedules, bank statements, service charge budgets, and vendor contracts. Exact requirements depend on the project’s stage and structure.

Do brokers need a real estate audit?

Yes. Real estate brokers are required to confirm that client deposits and commission records are properly handled and documented in line with DLD regulations.

How does a real estate audit relate to Corporate Tax compliance?

Audited financial statements produced for RERA compliance also form the basis for a developer or real estate business’s Corporate Tax calculations under Federal Decree-Law No. 47 of 2022, making audit accuracy relevant beyond RERA requirements alone.

What happens without a valid real estate audit?

Developers and property-related businesses without a valid, current real estate audit can face difficulty renewing registration or continuing certain regulated activities under RERA and DLD requirements.

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