Reserve Fund Studies
It is a fact that your building will age and expensive parts of your building will need to be replaced at some point of time during the economic life of the building. It is your responsibility to the owners of the building to ensure that adequate funds are being put aside for these future requirements.
A reserve or sinking fund is set up by the owners corporation of a strata titled development, to cover the costs of future capital expenses, which include for example, painting the building, road refurbishment, replacement of common major property items like floor tiling, mechanical plant and equipment, sprinkler systems, lifts and external claddings.
Not only is it good owner corporation management but having a properly undertaken reserve fund study and provisions in place protects and adds value to your owners property and also meets some of your legal requirements and in particular those of RERA and the legal requirements of Dubai Law. (27) of 2007 concerning Ownership of Jointly Owned Properties and DIFC Law No.5 of 2007 Strata Title Law.
Realpoint has international experience in providing reserve fund studies and is a leading provider within the UAE. We have provided reserve fund studies for some of the largest developments in Dubai and as a RERA licenced valuation and inspection firm we also regularly provide reserve fund studies to RERA registered Owner Associations to assist with their management of the common areas.
Our approach follows the general international guidelines of ISO 15686: 2014 and the Royal Institution Of Chartered Surveyors (RICS) but has been adapted to meet the requirements of Dubai's RERA and the lifecycle of property we see during our inspections within the UAE. We also refer to ISO 16739 and the use of COBie in our asset condition survey schema and facility information handling related to reserve fund studies.
