An escrow account is a legally required trust account into which all off-plan payments flow and which secures buyers' funds on a project-by-project basis.
Under Dubai law the developer may only access the funds once verified construction milestones are reached, checked by engineers of the DLD. If a project stalls, the instalments paid in are protected as a result.
The escrow system is one of the reasons off-plan in Dubai is regulated and more calculable for buyers than in many other markets.
As a private buyer you usually do not open an escrow account yourself. For off-plan purchases, Dubai law (RERA) requires the developer to hold a project trust account, and your instalments are paid into it automatically; the developer may only draw funds against verified construction progress. For a completed purchase, funds are handled through the DLD trustee office at transfer, not a personal escrow.
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Frequently asked
An escrow account is a legally required trust account into which all off-plan payments flow and which secures buyers' funds on a project-by-project basis.
As a private buyer you usually do not open an escrow account yourself. For off-plan purchases, Dubai law requires the developer to hold a project trust account, and your instalments are paid into it automatically; the developer may only draw funds against verified construction progress. For a completed purchase, funds are handled through the DLD trustee office at transfer, not a personal escrow.
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