Legal & RegulatoryUpdated March 1, 2026· 3 min read
Escrow Account
What is Escrow Account?
In Dubai real estate, an escrow account is a RERA-regulated bank account where all off-plan buyer payments are deposited. Funds can only be released to the developer against verified construction progress, protecting buyers under Law No. 8 of 2007.
Definition
Escrow accounts ring-fence buyer funds from a developer's general operating cash. An independent auditor and RERA authorize each release based on construction milestones, ensuring payments follow actual project delivery.
Key Facts
- 1Mandated by Law No. 8 of 2007.
- 2Supervised by RERA and audited independently.
- 3Applies to all off-plan projects in Dubai.
Frequently Asked Questions
What happens to escrow funds if a developer defaults?
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Funds remain protected in the escrow bank. RERA may transfer the project to another developer or refund buyers, depending on project status.
References & Further Reading
- Dubai Land Department (DLD) — official transaction & title records.
- Real Estate Regulatory Agency (RERA) — Ejari, Mollak & rental index.
- Department of Economy and Tourism (DET) — Holiday Home permits.
- Federal Authority for Identity, Citizenship, Customs & Port Security (ICP) — visa rules.
This entry is editorial and informational. It does not constitute legal, financial or tax advice.