Frequently Asked Questions

The real estate escrow account is a bank account of a real estate project in which the amounts collected from purchasers for the units sold off the plan (on the map) or from the financiers of the project are deposited.
The escrow account aims to regulate the building and construction processes of the units sold on the map guaranteeing investors’ rights. The provisions of the law apply to the developers (all real estate developers in Dubai, without exception), who will sell real estates on the map of the projects in the Emirate of Dubai and, in return, receive payments from the purchasers or financiers.

You can do so by visiting Dubai Land Department’s website – Real Estate Regulation – Tracking the status of projects.

The escrow account law applies to all real estate developers working in Dubai and those who sell units off-plan, and, in return, receive payments from purchasers or investors as well as from the financiers of the project.

You can visit Dubai Land Department’s website through the link below to learn more about the approved financial institutions

The law applies to all the projects that have been completed and sold off-plan. The law provided a period of six months since its issuance to all developers to adapt their situation in line with Law No. 8/2007 on escrow account for real estate development.

You can contact the Real Estate Escrow Account Department through: Email: trust.care@rera.gov.ae For more information, you can visit the website: https://vvsestate.com

If the project has not started and is under cancellation:
Please note that Dubai Land Department does not have the authority to terminate any contract between the developer and the investor at the request of the investor. In this case, the investor wishing to terminate a contract with the developer should go to the real estate court under that jurisdiction, and Dubai Land Department’s role here is limited to reconciling the two parties and settling the dispute amicably without deciding or interfering with the issue of termination.
If the project is cancelled:
The account is transferred to the project liquidation department, which in turn requests the developer to return the amounts paid to the investors within 60 days from the date of the cancellation decision. If the Real Estate Regulatory Agency deems that there are reasons to postpone, this period will be extended. In the event that the developer does not comply, the matter is referred to the court to guarantee the rights of the investors.
If the project completion percentage does not exceed 5%, with most of the amounts deposited in the escrow account, and the investor wants to recover the amounts in the account through the Real Estate Regulatory Agency, knowing that the developer has not and will not build the project:
What was mentioned in the first case applies here
If the project is not cancelled, and the investor wants to recover the amounts paid, that investor must resort to the court. If the project has been under cancellation or has been cancelled for more than a year or so, and there is no clear answer about the announcement of these projects, nor about the fate of the investors in those projects:
In the case of cancelled projects: The customer should refer to the top management because there are reservations about announcing cancelled projects, and the real estate court is contacted if the project is referred to the real estate liquidation committee in Dubai courts.
If the project is under cancellation: At this stage, the project has not yet been cancelled, and the process goes through several steps and procedures before reaching the cancellation decision, such as submitting a grievance, looking into the grievance, and then submitting its statement upon which the necessary action is taken. This process may take at least three months as it requires the formation of a committee to consider incomplete projects, and a report is submitted to the committee to consider and inform the possibility of proceeding with the cancellation, starting the liquidation procedures.

The liquidation section begins its role when the project status is cancelled at the request of the developer or if the project is cancelled and not under cancellation. On this basis, the liquidation section retrieves the amounts from the escrow account and deposits them in Dubai Land Department’s trust account to be distributed to the beneficiaries, either in full or in proportion, depending on the amount available in the account.

The Real Estate regulatory Agency monitors the progress of construction works in the project periodically, and if the project is stalled or the development is very minor, the developer is contacted and given a period to correct the project status. In the event that the developer does not comply and there are no reasons justifying the stoppage of construction or poor achievement, procedures for cancelling the project will be initiated according to the procedures approved by RERA.

The Real Estate Regulatory Agency undertakes a periodic review process for the status of the projects listed in the register and addresses the developers to update the technical project data, in terms of (expected completion date) and completion rates by obliging the developer to pay a technical report fee for projects for which the technical report has expired (three months from the date of the last technical report).

The period is indefinite in the event that all the documents, amounts and eligible persons are available, and each project takes its turn in the arrangement.

Since the schedule of payments is based on completion rates, the investor has the right upon receiving the payment request from the developer to know the current completion percentage of the project by the developer specifically through a letter (from the project consultant approved by Dubai Land Department), otherwise the investor will not be obligated to pay, unless it is confirmed that the project has reached the stage or percentage of completion specified in the schedule of payments agreed-upon between the two parties. An investor can track the progress of completion percentages through Dubai Land Department’s official website (project tracking service) or through its smart application.

The investor has the right to obtain a report showing the percentage of completion, and it must be prepared by the technical auditor at the Real Estate Regulatory Agency after paying the auditor’s audit fee of AED 15,000 for the real estate unit or the investor’s villa.

Please note that Dubai Land Department does not have the authority to terminate any contract between the developer and the investor at the request of the investor. In this case, the investor wishing to terminate the contract with the developer should go to the real estate court under that jurisdiction, and Dubai Land Department’s role here is limited to reconciling the two parties and settling the dispute amicably without deciding or interfering with the issue of termination.

In the case of such projects, Dubai Land Department and the Real Estate Regulatory Agency will intervene to protect the rights of the parties to complete the project.

All laws issued stipulate penalties against developers who violate the laws and regulations of real estate development.

The developer has to fill out the form regarding developer registration and project approval and submit the required documents. After approval of the project by the Real Estate Regulatory Agency represented by the Real Estate Development Escrow Accounts Department, the escrow account will be opened by the account trustee based on the project approval certificate. Currently, the procedure is done automatically by granting the developer the authority to enter the system after being approved as a real estate developer listed in the real estate developers registry. The submitted applications are reviewed and all registration requirements are met to approve the project. The developer will then be automatically allowed to open an escrow account and choose the survey company to submit the real estate units of the project.

Any bank or financial institution licensed by the Central Bank of the UAE to receive third-party deposits, and that is operating in Dubai as an account trustee, provided that these entities are approved by the Real Estate Regulatory Agency. The depositor with the proposed escrow account must enter into a written agreement with the Real Estate Regulatory Agency, stating the terms and conditions. Under it, the account trustee manages the escrow accounts.

Yes, the bank or financial institution can act as account trustee and provide financing for the development of the project.

All amounts received from buyers of real estate units sold off-plan (including money received from their partners who entered into a mortgage with them) are deposited in the project escrow account, as well as the amount of financing for the development of the property.

As a general rule, payments made from an escrow account are only for payments to the contractors, consultants and marketing involved in the project. Not all expenses incurred by the developer in connection with the project are eligible for payment from the escrow account. For example, only 5% of total sales can be paid for project marketing purposes.

The written agreement concluded between the developer and the account trustee contains details of the major construction stages that are required to be completed on the site for the purpose of releasing payments from the escrow account. The project manager at the developer informs the account trustee when a milestone is completed and submits a request for payment to the service providers. The account trustee engineer visits the site and checks the project to ensure the completion of the main construction phase. Upon verification of this, the account trustee is authorised to disburse payments from the escrow account to make payments to service providers.

Article (14) of the Escrow Account Law requires retaining 5% of the total amount paid in the escrow account for a period of one year after the completion of the project, as a guarantee that requires the developer or contractor to address defects in the property promptly and effectively, which are clear upon completion, or which may appear within one year after handover. The law became effective on June 28, 2007 when it was published in the official newspaper.

Yes, all payments received from buyers must be paid into the Escrow account.

The law was passed with the aim of controlling the real estate market in Dubai, and to regulate construction and sale of off-plan real estate units in order to secure the rights of buyers.

The law applies to all projects announced before or after the law was published in the official newspaper. In some cases, the developer can be excluded from opening an escrow account, especially for projects that have come a long way from the completion rates, and in which there are no problems facing projects or investors. Granting the exception remains within the jurisdiction of the Real Estate Regulatory Agency.

The escrow account must be opened in the name of the project, and used only for the purposes of developing the real estate project. The sums deposited in the aforementioned account may not be withheld in favour of the developer’s creditors.

The completion status of real estate projects in Dubai (free zones) can be tracked by entering the plot number, project number, or project name. Users will gain access to a lot of data, including a project’s percentage of completion and its status, in addition to plans that a developer may highlight. To benefit from this service provided by Dubai Land Department, you can use the link: https://dubailand.gov.ae/en/eservices/real-estate-project-status-landing/real-estate-project-status/

The real estate projects can be mortgaged to obtain a loan from banks or legally approved finance companies, provided that the value of the mortgage is deposited in the project’s escrow account to ensure that the deposited amounts are transacted according to the law. The bank and developer shall be committed to ensure that the purchasers fulfilled their contractual obligations towards the developer obtain the title deed upon completion of the real estate project.

A mortgage can be transferred from one financier to another, provided that a No Objection Certificate is obtained from the bank.

An application can be submitted to register the contract with the Real Estate Registration Assurance section at Dubai Land Department, supported by all documents that support the application.

In case of a developer:
In case of an initial registration

• Registering the project in the escrow account department through the developer portal system.
• Assigning one of the survey companies approved by Dubai Land Department through the developer portal system.
• Providing approved engineering drawings from the planning authority.
• Preparing the engineering data and drawings as per the engineering standards required by the survey company approved by the Survey department at DLD.
• Uploading the engineering data and drawings through the survey system of survey companies.
• Paying the approval fees by the developer through the developer portal to transfer the application to the buildings and joint areas department for the final approval.
• Paying the final fees, handled by the developer, through the developer portal after being approved by the buildings and joint-area department.

In case of the final registration (issuance of title deeds)

• Assigning one of the survey companies approved by DLD through the developer portal system
• Providing approved engineering drawings from the planning authority.
• Submitting a request to complete the project through the developer portal to convert the project status to 100% completed.
• Preparing the engineering data and drawings as per the engineering standards required by the survey company approved by the Survey department at DLD.
• Uploading the engineering data and drawings through the survey system of survey companies.
• Paying the approval fees by the developer through the developer portal to transfer the application to the buildings and joint areas section for final approval.
• Paying the final fees, handled by the developer, through the developer portal after being approved by the buildings and joint-area department.

In case of a landlord who wants to issue ownership title to a building or villa but does not have an escrow account.
Having an agreement with one of the survey companies approved by DLD.
Providing engineering drawings approved by the planning authority.
The assigned survey company shall make a request to survey the building or the villa using the company survey system.
Preparing the engineering data and drawings as per the engineering standards required by the survey company approved by the Survey department at DLD.
Uploading the engineering data and drawings through the survey system of survey companies.
Paying the approval fees by the landlord through the e-link sent to the e-mail registered in the application.
Paying the final fees, handled by the developer, through the developer portal after being approved by the buildings and joint-area department.

In the event that the parties to the land-owning company differ from the parties to the development company

Upon 100% completion of the project according to the result of the technical report

Through the self-registration system OQOOD

Through the self-registration system OQOOD

After completing all registration procedures and obtaining the accreditation certificate

By submitting final building permits

By submitting a contact information update form

Requirements should be sent via email

No, there isn’t

Yes, it is possible

By submitting a building permit

Through the TAS self-registration system

It is the bank account of the real estate project in which the amounts are deposited from the purchasers of the real estate units sold off-plan or the sums that will be deposited by the project financiers or by the developer.