A real estate escrow account is a protected bank account for a development project where all funds from off-plan purchasers and project financiers are securely held. A cancellation request initiated by the developer must be submitted through the TAS self-registration system. A project description is updated by submitting an updated and approved building permit to the relevant authority. It is possible to complete a large project in phases, with each phase being finalized and handed over separately. There is no land loading fee for the project. The specific requirements for preparing project lands must be requested and received via email from the relevant department. Contact information is updated by submitting a dedicated update form through the official channel. A project’s description can be officially changed by submitting the updated and approved final building permits to the relevant authorities. A new project can only be officially launched and announced to the public after completing all registration procedures and obtaining the official accreditation certificate from the relevant authorities. An accreditation certificate is issued through the OQOOD self-registration system. The technical report fee to verify the construction progress is paid by the developer through the OQOOD self-registration system. The bank guarantee can be reclaimed by the developer after the one-year defect liability period following the project’s 100% completion, provided there are no outstanding claims from investors for construction defects. In the event that the owners of the land and the real estate developer are different entities, a legally binding development agreement must be established and registered with the Dubai Land Department to define the rights, obligations, and profit distribution between both parties before any project-related activity can commence. For a Developer – Initial Project Registration: For a Developer – Final Registration (Issuing Title Deeds): For a Landlord (without an escrow account): You can apply to register your contract with the Real Estate Registration Assurance section at the Dubai Land Department by submitting the required supporting documents. A property mortgage can be transferred from one financier to another with the issuing bank’s No Objection Certificate (NOC). A real estate project can be mortgaged to secure a loan from a bank, provided the loan amount is deposited into the project’s escrow account to ensure its proper use. The bank and developer must also ensure that purchasers who have fulfilled their contracts will receive their title deeds upon the project’s completion. You can track the progress of real estate projects in Dubai, including free zones, by using the Dubai Land Department’s online service. Simply enter the plot number, project number, or project name to view key details such as the completion percentage, current status, and any developer-provided plans. Access the service here: The escrow account must be opened in the project’s name and used exclusively for its development. Funds in this account are protected and cannot be seized by the developer’s creditors. The law applies to all projects, regardless of their announcement date. However, the Real Estate Regulatory Agency may grant exceptions from opening an escrow account for projects that are near completion and are facing no operational or investor-related issues. This law was established to regulate Dubai’s real estate market, specifically governing the construction and sale of off-plan properties to protect the rights of buyers. That is correct. All buyer payments must be deposited into the project’s escrow account. To protect buyers, Article (14) of the Escrow Account Law mandates that 5% of the total project funds be held in the escrow account for one year after project completion. This amount serves as a guarantee, ensuring the developer or contractor promptly addresses any construction defects that are apparent at handover or that emerge within that first year. This law has been in effect since its publication on June 28, 2007. The agreement between the developer and the account trustee details the major construction milestones that trigger payments from the escrow account. Once the developer’s project manager reports a completed milestone, the account trustee’s engineer conducts a site verification. Only after confirming the work is finished is the trustee authorized to release the corresponding funds from the escrow account to the service providers. Funds from an escrow account are strictly reserved for project-related expenses, such as payments to contractors, consultants, and marketing. However, not all developer costs are eligible. For instance, a maximum of only 5% of the total sales value can be withdrawn from the account for marketing purposes. All funds for an off-plan project must be deposited into its escrow account. This includes all payments from unit buyers, any financing from their mortgages, and the primary development loan for the project itself. Yes, the same bank or financial institution can serve as both the escrow account trustee and provide development financing for the project. Approved escrow account trustees are UAE Central Bank-licensed banks or financial institutions in Dubai that are also authorized by the Real Estate Regulatory Agency (RERA). These trustees must sign a written agreement with RERA, outlining the terms and conditions under which they will manage the escrow accounts. Once a developer is approved and listed in the official registry, they receive access to an automated system. Through this system, they can submit their project for approval. After the Real Estate Regulatory Agency reviews and approves the project, the developer is automatically authorized to open an escrow account and select a survey company to register the project’s units. All real estate laws include penalties for developers who fail to comply with official regulations. In these situations, the Dubai Land Department and the Real Estate Regulatory Agency will intervene to protect all parties involved and facilitate the project’s completion. An investor has the right to request an official completion report from the Real Estate Regulatory Agency’s technical auditor. This report, which verifies the construction progress, costs AED 15,000 per residential unit or villa, payable by the investor. An investor is only obligated to pay an installment after the developer proves the project has reached the corresponding completion milestone specified in their payment schedule. This proof must be provided in the form of a letter from the Dubai Land Department-approved project consultant. If this official verification is not provided with a payment request, the investor has the right to withhold payment. Investors can also independently verify the reported completion percentage using the project tracking service on the Dubai Land Department’s official website or smart app. The processing period is ongoing and operates on a first-come, first-served basis, moving forward as long as all required documents, funds, and eligible applicants are in order. The Real Estate Regulatory Agency (RERA) conducts periodic reviews of all projects on its official register. As part of this process, developers are required to regularly update their project’s technical data, including the expected completion date and current completion rates. To ensure the accuracy of this data, a developer must submit a updated technical report. This is mandatory for projects where the previous technical report has expired, which is defined as being more than three months old. The developer is responsible for paying the associated fee for this new report. The Real Estate Regulatory Agency (RERA) conducts periodic monitoring of construction progress on all development projects. Should a project become stalled or demonstrate negligible advancement, RERA will formally notify the developer and grant a specified period to rectify the situation and resume work. If the developer fails to comply without providing a valid and justified reason for the construction delay or poor performance, RERA will initiate formal procedures for the project’s cancellation, in accordance with its established regulations. The Liquidation Section initiates its procedures once a project’s status is officially “Cancelled”—whether at the developer’s request or by regulatory decision. Following the cancellation, the section is responsible for retrieving all remaining funds from the project’s escrow account and transferring them to a central trust account held by the Dubai Land Department. These funds are then distributed to the eligible investors. The distribution may be for the full amount owed or on a proportional basis, depending on the total funds available in the account. This is a complex situation that depends on the project’s official status. For inquiries, please contact the Real Estate Escrow Account Department via the following channels: We encourage you to visit our website or download the app for further information. The law applies to all projects that were sold off-plan, including those already under development at the time of its enactment. To facilitate compliance, developers were granted a six-month grace period following the issuance of Law No. 8/2007 to align their operations with the new escrow account regulations. The list of financial institutions authorized by RERA to manage escrow accounts is available on the Dubai Land Department’s website. Visit the link below to learn more. Compliance with the escrow account law is mandatory for all Dubai-based real estate developers engaged in the sale of off-plan units and the receipt of associated payments from purchasers, investors, or project financiers. To track a project’s status, visit the Dubai Land Department website, navigate to ‘Real Estate Regulation,’ and select ‘Tracking the status of projects.’ A real estate escrow account is a protected bank account for a development project. It holds all payments from property buyers or project financiers. Its primary purpose is to safeguard investor funds and regulate the construction process, ensuring that the money is used specifically to build the project. In Dubai, this is a legal requirement for all developers selling properties “off-plan.” To recover your password in the Ejari system, you must visit the ‘forgot password’ page and follow the steps there. You can do so by visiting Dubai Land Department’s website – Real Estate Regulation – Tracking the status of projects. 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.
https://dubailand.gov.ae/en/eservices/real-estate-project-status-landing/real-estate-project-status/1. Project Not Started / Under Consideration for Cancellation
2. Project Officially Cancelled
3. Project Has Made Minimal Progress (≤ 5% Complete)
4. Long-Delayed Projects (Under Cancellation Review for Over a Year)
