RERA escrow accounts explained

How escrow works

When a developer registers an off-plan project, it must open an escrow account for that project with an approved bank. Buyers' instalments are paid into it. The developer cannot freely use the money; withdrawals are released for that project's costs, generally linked to verified construction progress under RERA/DLD oversight. The aim is simple: money paid for a building is spent on that building, not on another project or company expenses.

Why it matters to you

Escrow reduces the risk of a developer collecting deposits and failing to build. It also gives a clear audit trail for regulators if a project runs into difficulty. It is not a guarantee of on-time completion or of quality, and it does not protect money paid outside the account. That is why paying the right account is the single most important habit for off-plan buyers.

How to check the escrow account

1. Open the Dubai REST app and find the project (see how to verify a developer on Dubai REST). 2. Note the escrow bank and account details shown for the project. 3. Compare them with the account on your SPA, payment plan and every payment request. 4. If they differ, stop and ask the developer for a written explanation; confirm with DLD if unsure.

Your agent should help with this, but do it yourself as well.

Paying correctly

• Pay by bank transfer or cheque directly to the escrow account, quoting your unit number and name
• Never pay instalments into an agent's or individual's account
• Ask for an official developer receipt for each payment
• Keep a running ledger matched to the payment plan in the SPA
• The DLD fee for Oqood registration may be paid separately as the developer instructs — confirm the payee in writing

See off-plan payment plans explained for how instalments are structured.

If a project is delayed or cancelled

Where a project stalls or is cancelled, DLD and RERA have procedures for dealing with the project and its escrow funds, which can include refunds to buyers or appointing another developer. Outcomes depend on the case. Keep your SPA, Oqood certificate and every receipt, follow official DLD communications, and take legal advice if needed. Confirm the current rules with DLD/RERA rather than relying on informal reports.

Who does what

The developer opens the account and requests withdrawals. The escrow bank holds funds and releases them under the rules. RERA/DLD oversee the project and its progress. The buyer pays the correct account and keeps records. The agent should point you to the escrow details and never handle instalments. For the full pre-purchase list, see the off-plan due diligence checklist, and weigh the format itself in off-plan vs ready property.

Common mistakes

• Paying a 'booking fee' to a sales agent's account
• Not checking the escrow account after a developer changes banks
• Assuming escrow guarantees the completion date
• Losing receipts, which are needed for resale, disputes or refunds

Escrow and your Oqood registration

Escrow protects the money; Oqood records the contract. Together they are your main evidence of an off-plan purchase. Make sure both are in place early: keep proof of escrow payments and request the Oqood certificate once the developer registers your SPA. See title deed and Oqood explained.