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 Abu Dhabi?
• Existing and Active Corporate Account of the Developer with CBD
• Undertaking non-personal, multi account form
• Signed Escrow Agreement
• Signed Proposal- for pricing and/or interest
• Copy of Title Deed
• Developer Registration Certificate
• Certificate of Approval from DMA for account opening
What is the process of opening a real estate escrow account (Abu Dhabi Projects)?
- Step 1: Developer must ensure that the project is 20% completed
- Step 2: Submit all the required documents to your relationship manager or sales and advisory manager
- Step 3: Submit the signed escrow agreement to Department of Municipal Affairs (DMA) of Abu Dhabi together with other requirements, and obtain the certificate of approval from DMA.
- Step 4: Submit the certificate of approval from DMA to the bank, and bank will start processing the account opening
- Step 5: 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 DMA guidelines
What is the process for releasing payments from a real estate escrow (Abu Dhabi Projects)?
- Step 1: Apply in Smarthub.adm.gov.ae
- Step 2: Submit the “original transfer letter” and supporting documents to CBD Abu Dhabi Branch or through our 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 document