Escrow accounts and RERA: how your payments are protected
When you buy off-plan in Dubai, your payments go into an escrow account for that project. The developer can only draw money from it as construction progresses. This is the main protection for off-plan buyers.
What the law requires
Dubai's escrow law (Law No. 8 of 2007) requires developers to open a separate escrow account for each off-plan project with an approved bank, and to sell units only after the project is registered. The money in it can only be used to build that project.
Who checks
The Real Estate Regulatory Agency (RERA), part of the Dubai Land Department, registers developers and projects, approves escrow accounts and monitors construction progress. An escrow agent at the bank releases funds when RERA confirms progress.
What this means for you
- Pay only into the project's escrow account, never to a personal or a different company account.
- The escrow account number and bank are in your Sales and Purchase Agreement and on payment instructions.
- If a project is cancelled, the rules provide for refunds from the escrow account under the regulator's supervision.
Questions to ask the developer
- What is the project's DLD registration number and escrow account?
- How is the payment plan linked to construction progress?
- What is the current construction progress, and the official completion date?
General information, not legal advice. Confirm current rules with the Dubai Land Department.