New system for realty governance in Dubai
The Dubai Land Department (DLD), through its regulatory arm the Real Estate Regulatory Authority (Rera) launched a first-of-its-kind electronic system called Mollak that incorporates innovations to ensure that justice and transparency are maintained.
The DLD prioritises customer satisfaction and happiness, in line with national strategies, and developed this system to help co-owned property owners and ensure smooth and easy operations with their property managers.
Mollak provides a new and integrated system to monitor accounts related to service charges in these projects by relying on the financial accounts operating according to the mechanism of the escrow account.
The system operates across a range of stakeholders in managing co-owned properties. It also operates within the real estate unit owners’ database and the database of real estate units registered and approved by the DLD, where no user may change the data.
Marwan bin Ghalita, chief executive of Rera, said the Real Estate Relations Regulatory Department at the Rera developed the work mechanism of this new system by relying on the competencies of citizens working at Rera to help disperse real estate knowledge through sustainable and modern electronic means in service of the real estate sector.
“As a customer-centric approach to its services, Rera committed a pilot phase with most management companies, financial auditors and financial institutions for the programme before officially launching it in second quarter of 2019 to high acclaim,” he said.
Through the system, 468 bank accounts were successfully opened for project service charges, 88 management companies and 1,212 real estate projects were registered and approved by Rera, as well as 200,000 real estate units, comprising residential apartments, villas, offices and commercial shops.
As a further consolidation of Rera’s emphasis on security and customer trust, it attracted seven banks to act as account trustees for co-owned properties and registered eight financial auditors to explicitly audit the application fees that were submitted for accreditation.
“Through the system, Rera seeks to increase the role of governance, regulation, and supervision as well as the participation of private sector specialists to increase real estate transparency and maintain the balance between real estate developers, management companies, and homeowners,” Bin Ghalita said.
“This is to increase customer satisfaction and happiness in the services provided by Rera as well as facilitate the procedures of real estate unit owners when dealing with management companies and managing service-fee accounts,” he added.
Mohammed bin Hammad, senior director of the Real Estate Relations Regulatory Department at Rera, said Rera’s registration of auditors and banks to monitor transactions in the system is evidence of its emphasis on security, regulation, and customer trust.
“Thanks to the innovative new Mollak system, co-owned property projects will be managed with the utmost provision of high-quality services in line with the expectations of owners and residents,” he said.
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