Dubai Real Estate Escrow Accounts: What They are & How They Work?

January 26, 2026
Real Estate
(0)
06 mins

Dubai Real Estate Escrow Accounts: What They are & How They Work?

Investors need to be able to trust, have transparency about and be secure when investing in real estate, especially when investing in off-plan projects. An Escrow Account will provide investors with all these assurances.

An Escrow Account is essentially an independent, third party bank account where the investor’s funds are kept safe until all conditions of the investment have been fulfilled between Buyer and Developer.

In the UAE, for Buyers purchasing off-plan real estate, the Escrow Account ensures Developers can only collect the Investor’s payment once the Buyer has received the property.

Thus the Investor is protected from developer fraud and misuse of their funds till such time as the property is delivered.

The Real Estate Regulatory Agency (RERA), which is part of the Dubai Land Department (DLD), oversees the Escrow Accounts in accordance to law (Law No. 7 of 2007 and Law No. 13 of 2017).

The above laws require that any off-plan property must have its payments deposited into a designated Escrow Account set up by the Buyer and funded by the Developer.

This ensures Developers cannot access an Investor’s funds until they have fulfilled their obligations, thereby ensuring the security of an Investor’s funds.

Setting up an Escrow Account in Dubai is quite simple: Developers must apply through the Oqood Portal. Once the application has been submitted, it will be reviewed by a Trustee who will conduct an audit of the Developer’s capability, and once the Trustee has `approved` the Developer, they will establish the Escrow Account. Buyers can check on the approved Escrow Trustees on the DLD Website.

There are many advantages of using Escrow Accounts such as increased satisfaction for both parties involved, reduced chance of a dispute arising from their agreement, and simple methods for the Developers to manage Investor funds.

Therefore, if you are considering investing in off-plan real estate in Dubai, you will want to understand and take advantage of Escrow Accounts for your protection and success.

What is an Escrow Account

An escrow account can be explained with an exemplary scenario of placing your money in a secure box with two keys. The ownership key is held by the person, but another trusted party, a bank, for instance, holds the access key. That is basically an escrow account.

Your money is kept safe in an escrow account and can only be released when you and the other party (a seller) agree on certain conditions, like a house being constructed or a project completed.

In Dubai’s property domain, escrow accounts act as a secure middle person. The buyer deposits a down payment into a bank account managed by the real estate firm. However, the seller only gets the money once the property is transferred to the buyer. This ensures a fair and transparent deal

The Escrow Account Law

Escrow accounts play a significant role in Dubai’s real estate domain, protecting the rights of buyers and developers. The Real Estate Regulatory Agency (RERA), a division of the Dubai Land Department (DLD), takes care of the implementation of the laws, enumerated below:

Law No. 7 of 2007 Relating Land Registration in Dubai (as amended): Establishes the legal framework for land registration, including provisions related to escrow accounts.
Law No. 13 of 2017 Regulating the Real Estate Sector in the Emirate of Dubai (as amended): Regulates the real estate domain, including the necessity of escrow accounts for off-plan properties.

Real estate developers in Dubai who sell off-plan units and receive financial payments from the purchasers, as dictated in the terms of the purchase agreement, are subject to these Escrow Account laws.

Under these laws, money paid by the buyer against any off-plan project/property must go to the developer’s escrow account.

How to Set Up an Escrow Account

Creating an escrow account in Dubai is a straightforward task. The developer is required to contact the registered authority to activate an escrow account for an off-plan property.

It is crucial to note that the developer needs to open a separate account for each off-plan project.

Here’s how you can initiate the process:

Step 1: Log in to the Oqood portal and select the escrow account link.
Step 2: Select the required service and submit your application.
Step 3: Your application will be sent to the Trustee Account, which will study the capability.
Step 4: The trustee will then upload and send their document of findings through the escrow account system.
Step 5: The escrow account will be audited by the concerned department and will determine the approval or rejection of the application.
Step 6: If the application is approved, the system will be updated automatically

Two crucial aspects regarding this should be noted:

Firstly, only the payment plan for the off-plan project is required as a document for this procedure.
Secondly, Only the developers living in Dubai are eligible to apply for this process to open an escrow account in Dubai.

How to view Approved Escrow Account Trustee

Escrow accounts working in Dubai can be checked by visiting the DLD website.

Here’s the step you need to follow:

Visit the official DLD website
Select ‘All Services’ from the ‘Service’ tab shown on the main page
Click on or expand the ‘Information Services’ tab
Select ‘Approved escrow account trustees’
Press on the ‘Access this service’ button
View the list of registered Escrow Account trustees

Benefits of Escrow Accounts in Dubai

The core motive of Escrow Account Law is to protect the rights of all the parties involved in the deal. Therefore, an escrow account offers several benefits when investing in an off-plan project.

Enhanced Security: The payment is held securely by a neutral third party (escrow agent) until certain conditions are met. This ensures that the agreement is executed seamlessly without any misuse or fraud by any party involved.
Increased Transparency: The escrow agreement clearly describes all conditions for releasing funds, ensuring everyone understands their requirements and expectations, thus ensuring transparency and trust.
Record of the Proceedings: Since the Escrow Account Law is clearly outlined and all the transactions are recorded by the escrow trustees, there’s almost no chance of a default or fraud.
Streamlined Transactions: Escrow services can accommodate complex transactions by managing fund disbursement. This saves the effort and time for all parties involved. This can be particularly helpful for transactions with complex conditions or multiple parties.

The Bottom Line

Dubai’s real estate market relies on escrow accounts as one of its most important tools because they provide investors with a secure and transparent means of conducting transactions.

By having all moneys held with a neutral third party until the terms of a contract are met, investors can be assured that their investment will not be lost to fraud, and developers can also be sure that their project will be completed on time in accordance with the contract. Escrow accounts are governed by RERA, and their use is backed by regulations from the Dubai Land Department, creating a framework of confidence and trust within the off-plan property market.

Escrow accounts provide developers with structure for managing funds, and allow them to comply with the regulatory requirements in the region.

They give purchasers peace of mind by assuring that their funds are safeguarded and will only be released based on the fulfillment of the terms agreed upon in the contract.

Generally, escrow accounts provide a streamlined process for facilitating transaction completion by recording all financial activities, providing a way to improve transparency, and enhancing the efficiency of the entire real estate marketplace.

With Dubai developing into one of the premier global real estate investment centres, understanding and using escrow accounts is a necessity for any individual considering either purchasing an off-plan property or managing numerous investments.

Overall, escrow accounts provide fairness, accountability, and peace of mind, making them an important and necessary tool for successfully participating in Dubai’s property real estate market.

For more information on investing in Dubai real estate, get in touch with our highly experienced professionals at TAQ Global Properties: