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 Ras Al Khaimah?
• Existing and Active Corporate Account of the Developer
• Undertaking non-personal, multi account form
• Signed Escrow Agreement
• Signed Proposal- for pricing and/or interest
• Copy of Title Deed
• Developer Registration Certificate in RERA-RAK
• Approved Architectural Design and layouts (copy)
• Trade License and Certificate of Registration of Membership from RAK and Chamber of Commerce and Industry & RERA RAK
• Copy of Sale Contract between developer and buyer
• Cash Flow financial statement of project signed by developer’s approved auditor
What is the process of opening a real estate escrow account (Abu Dhabi Projects)?
- Step 1: Submit all the above requirements to your relationship manager or sales manager
- Step 2: 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-RAK guidelines
What is the process for releasing payments from a real estate escrow (Abu Dhabi Projects)?
- Step 1: Submit the “original transfer letter” and supporting documents to CBD
- Step 2: For any discrepancy, CBD team will reach out to you
- Step 3: Once all is in order, payment shall be released as per the request in submitted transfer letter