Request to Activate an Escrow Account

This service allows the real estate developer to apply for activating the disbursement mechanism from the escrow account of the off-plan real estate project

Not Applicable

Project's payment plan

1- The real estate developer must ensure and comply with the standards of the financial risks of the real estate project before submitting the application
2- A recent technical report issued by Dubai Land Department (not exceeding 4 months) and the absence of a red flag in the last stages of the project progress.
3- Highlight the reasons for freezing the escrow account
4- A letter from the account trustee stating that all documentation of the project escrow account have been received and the monthly financial statements of the account trustee have been uploaded
5- If a bank guarantee is available: activate the escrow account with the value of the bank guarantee for construction works until 20% is completed based on a recent technical report issued by Dubai Land Department.
6- In the event of a real estate developer's contribution: activate the escrow account with the value of the amounts deposited from the developer's private account in the escrow account only.
7- In the event of financing or mortgage: Activating the escrow account with the value of the sums deposited by the current financing bank in the escrow account only.
8- In case of financial solvency: activate the escrow account based on a percentage of the construction works after completing 20% based on a recent technical report issued by Dubai Land Department.
9- In the event of a request to activate the administrative, marketing and tax expenses: verify and adhere to the standards of risk and financial solvency of the real estate project on the basis of construction expenses, followed by infrastructure expenses, administrative expenses, marketing expenses, and tax expenses before submitting the application.
10- Infrustructure account:
The master plan of the project must be approved by the main developer.
- An official letter issued by the real estate developer addressed to the Real Estate Regulatory Agency requesting to open an infrastructure account with an explanation of whether the value of the infrastructure was mentioned in the investors Sale & Purchase Agreement (SPA).
- The infrastructure value of the master plan must be provided, divided on each project separately on a quarterly basis and approved by the main engineer account trustee
- A report from the project consultant showing the current percentage of completion of the infrastructure, in addition to a recent technical report issued by Dubai Land Department.
- (In the event of transfer) the amounts for each project are transferred quarterly after the approval of the engingeer account trustee for the infrastructure account and the real estate project account trustee.

Free Service

Via the electronic system
Step 1: Enter Oqood portal, choose the escrow account link, choose the service and submit the request
Step 2: The application is sent to the account trustee
Step 3: The account trustee studies the financial solvency, uploads the documents and sends them through TAS system
Step 4: The escrow account department checks for financial solvency with approval or rejection.
Step 5: In case of approval the system is updated

Not Applicable

Dubai Land Department's website (Real Estate Developers Portal -Oqood) TAS System

Not Applicable

Waiting time 19 working hours
Serving time 13 working hours