What is Real Estate Escrow Account?
A real estate escrow account is a government mandated account which aims to protect the investors’ money by ensuring that purchasers’ payments are primarily used for the completion of the project.
What are the requirements for opening a real estate escrow account wherein the project is within the Emirates of Dubai?
• Existing and Active Corporate Account of the Developer with CBD
• Duly filled-up “Undertaking non-personal, multi-account form”
• Signed Escrow Agreement
• Signed Proposal- for pricing
• Copy of Title Deed
• Developer Registration Certificate
• RERA TAS Application where CBD is the appointed account trustee
What is the process of opening a real estate escrow account (Dubai Projects)?
- Step 1: Apply in RERA’s Trust Account System (TAS) and appoint Commercial Bank of Dubai as your account trustee agent
- Step 2: Submit all the required documents to your relationship manager or sales and advisory manager
- Step 3: Check your application in TAS and ensure that RERA approval is obtained for Account Opening. Please note Bank cannot start processing the opening of the account unless TAS queue is with the bank.
- Step 4: Bank will inform you once the account is opened and provide you with details of the account
What are the requirements in releasing payments from real estate escrow account?
Requirements will depend on the “payment type” and is according to RERA guidelines
What is the process for releasing payments from a real estate escrow (Dubai Projects)?
- Step 1: Apply in RERA’s Trust Account System (TAS) and attach all the required documents
- Step 2: Submit the “original transfer letter” to CBD’s Service Desk at Head Office or through a dedicated document collection service
- Step 3: For any discrepancy, CBD team will reach out to you
- Step 4: Once all is in order, payment shall be released as per the request in submitted transfer letter