Everything you need to know about Dubai's escrow system — the legal protection that makes off-plan property investment safe for international buyers.
Why Escrow Exists
Before the escrow law of 2007, Dubai experienced high-profile developer failures where investor money was misappropriated before construction began. RERA's escrow mandate was introduced to prevent this permanently. Today, it is illegal for any developer to receive off-plan buyer payments into a general account.
How Funds Are Released
The escrow trustee — always a UAE Central Bank-regulated bank — holds buyer funds. Funds are released to the developer only against independently certified construction milestones: foundation completion, structural frame progress, and so on.
What Happens if a Project Is Cancelled
If a project is cancelled, all funds remaining in the escrow account are returned to buyers. RERA has legal powers to appoint a trustee developer to complete the project or to liquidate assets and compensate buyers.
Key Takeaways
- •All off-plan buyer funds in Dubai must be held in a RERA-approved escrow account.
- •Funds are released to developers only against independently certified milestones.
- •In a cancellation, escrow funds are returned to buyers as a legal priority.
- •You can verify any project's escrow account number via the DLD REST app.
- •DMK Estate only presents projects from developers with active, compliant escrow accounts.
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