A Management Entity is required to create a cash reserve specifically to cover emergency expenses or the replacement of equipment in common parts. This reserve must be kept in a separate account from the main service charges fund. It can only be acc…
A Management Entity is required to create a cash reserve specifically to cover emergency expenses or the replacement of equipment in common parts. This reserve must be kept in a separate account from the main service charges fund. It can only be accessed for critical emergencies and generally requires the prior approval of RERA before any withdrawal. If this reserve is insufficient for an urgent repair, the DLD, with RERA's approval, may request owners to provide additional coverage for these specific costs.
This is general information from the website library. Confirm current rules, fees and property details with the relevant authority before acting.
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