Escrow Account (Off-Plan Protection)
A regulated bank account where developer payments are held to protect buyers in off-plan property transactions.
What is Escrow Account (Off-Plan Protection)?
An escrow account is a bank account managed by an independent escrow agent where buyer payments for off-plan properties are deposited. The developer cannot access these funds freely — withdrawals are only permitted at specific construction milestones verified by independent engineers. This protects buyers from developers who might misuse funds or fail to complete projects.
Escrow Account (Off-Plan Protection) in the UAE
Dubai's RERA (Real Estate Regulatory Agency) mandates escrow accounts for all off-plan projects. Under Law No. 8 of 2007 (and subsequent amendments), developers must register projects, open escrow accounts with approved banks, and can only withdraw funds according to a construction-linked schedule. RERA's Oqood system provides interim registration for off-plan units, adding another layer of buyer protection.
Are all off-plan projects required to have escrow accounts?
Yes, in Dubai. RERA mandates escrow accounts for all off-plan developments. Always verify the escrow account details with RERA before making payments.
What happens to my money if the developer goes bankrupt?
Your payments in the escrow account are protected. RERA has processes for project takeover or buyer refunds, though outcomes depend on the specific situation.