The real estate escrow account is a bank account in the name of the project used by real estate developers and financiers to keep all sales transactions safe during the course of a real estate project. It is one of the most useful mechanisms in the construction industry.

It also contributes to the preservation of their rights by providing a direct deposit service in their bank accounts, without any relationship of the project developer with these accounts, thus enhancing their trust and transparency.

Escrow accounts were introduced in 2007 by RERA under the DLD, and here are some key points for buyers:

Delivery time is now set, and if there was any delays the developer will be responsible to compensate the buyer.
Money is secure in segregated accounts (escrow account) handled by the government.
Developers should deposit around 50% of the project cost and own the land of the project to open an escrow account.

How does it work? In simple words, an escrow account is a safe-deposit box that a property developer/owner has opened with the bank for the purpose of receiving payments for the sale of their off-plan property.

The role of an escrow account is to provide protection to the seller and buyer of real estate during the project.

Key Clue Properties understands your concerns and confusion when it comes to buying a property, and we are ready to assist as we are a certified agency in Dubai.

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