Establishing a real estate escrow account in Dubai is a structured process designed to protect all parties involved in property transactions, particularly for off-plan developments. The Real Estate Regulatory Agency (RERA) oversees this procedure to ensure compliance and transparency. Below is a detailed, step-by-step guide for developers to set up an escrow account:
Project Registration with Dubai Land Department (DLD):
Initiate Project Registration: Developers must first register the real estate project with the DLD, providing comprehensive details about the development.
Access the Oqood Portal:
Log In to Oqood: Visit the Oqood portal and log in using your developer credentials.
Select 'Provisional Procedures Service': Navigate to this service to begin the escrow account application process.
Complete the Application Form:
Enter Project Details: Provide accurate information about the project, including its name, location, and specifications.
Attach Required Documents: Upload necessary documents, such as the project payment plan and any approvals obtained from relevant authorities.
Choose a Payment Procedure:
Select Payment Method: Determine the appropriate payment procedure for the escrow account setup fees.
Submit the Application:
Finalize Submission: Review all entered information and submit the application through the Oqood portal.
Application Review by Account Trustee:
Verification Process: The assigned escrow account trustee will review the application to ensure all criteria are met.
Request for Additional Documents: If necessary, the trustee may ask for further documentation to support the application.
Escrow Account Department Approval:
Final Assessment: The Escrow Account Department evaluates the application and the trustee's recommendations.
Approval or Rejection: Based on compliance with RERA regulations, the department will approve or reject the application.
System Update:
Application Status: Upon approval, the system will automatically update the project's status, indicating that the escrow account is active.
Key Considerations:
Separate Accounts for Each Project: Developers are required to open individual escrow accounts for each off-plan project to ensure funds are allocated appropriately.
Compliance with RERA Regulations: Adherence to RERA's guidelines is crucial throughout the process to avoid delays or penalties.
Transparency and Accountability: Maintaining clear records and open communication with all stakeholders fosters trust and ensures the project's financial integrity.
By meticulously following these steps, developers can establish escrow accounts that safeguard both their interests and those of the investors, promoting a secure and transparent real estate environment in Dubai.
