Real State Escrow Registration
1. What is a Real Estate Escrow Account?
An escrow account is a regulated bank account where buyer payments are held and released to the developer only under approved conditions/Regulations, helping protect buyers and ensure funds are used for the project.
2. When does the Escrow Registration process start, and how does the bank receive the escrow registration request?
The Escrow Registration process starts during the developer’s project registration with RERA, when the developer selects the bank as the escrow agent.
Once the developer submits the project in RERA and completes the checklist, the request is automatically routed to the bank’s TAS system, where it appears in the registration queue along with all submitted documents.
3. What key documents are required for Real Estate Escrow Registration?
The following documents must be provided by the developer:
- Project Development Escrow Agreement
- Project Development Pricing Proposal
- Multi‑Account Opening Form
If any documents are missing, the gaps are clearly highlighted in the Account Opening Memo along with the required approval obtained.
Real State Escrow Payments (Inflows)
1. What does “Escrow Payments (Inflows)” mean?
Escrow Payments (Inflows) refer to funds collected into the escrow account from investors and recorded in the TAS system using unique reference numbers.
2. How are payment allocations communicated to the developer?
Bank Operations team communicates the credit allocations, including bank reference details, to the developer on a timely manner (Usually on a weekly basis).
3. What happens if there is a mismatch in payment details?
If Operations team identifies discrepancies in:
- Unique reference numbers, or
- Payment amounts
the payment is rejected, and the developer is notified to initiate a new request in TAS.
Real State Escrow Payments (Outflows)
1. What does “Escrow Payments (Outflows)” refer to?
Escrow Payments (Outflows) refer to payments released from the escrow account for project-related expenses after technical inspection and compliance checks are completed by the Bank.
2. Who initiates the technical verification before payments are processed?
The Bank Engineer visits the project site, conducts inspections, and issues the required certificates before any payment outflow can be processed.
3. What is the process in pertaining a hybrid access in the CIB system to initiate requests?
Once the account opening process is finished, the Escrow Coverage team will reach out to the client to collect all necessary signatures for user access. If a walkthrough is needed, the client excellence team will contact the client to offer additional clarification.
4.What happens if the project progress is less than 20%?
If project progress is below 20%, the developer must provide equity from their own funds or submit a guarantee before utilizing investor funds.
Investor funds can be utilized once the project progress reaches 20% in the FD, and the financial remarks are updated with the correct percentage — unless there is a deviation.
In case of deviation, the developer must obtain RERA approval and share it with the bank via email.
5.What documents must be original when submitting payment requests?
The following documents must be original:
- Guarantees
- Contractor Agreements
- Signature & Stamp
- Proof of Payment
- Debit/Deposit Slip
6. Can payments be processed if documents are incomplete or expired?
No. Payments will not be processed unless:
- All required documents are original and complete, and
- The technical inspection is valid within the permitted timeframe.
Real Estate Account Conversion
1. What is an Escrow Account Conversion?
Escrow account conversion is the process of transferring a real estate project from Escrow account to corporate account status once the project is 100% completed and approved by RERA.
2. When can a developer request Escrow Account Conversion?
A conversion request can be raised only after the project is fully completed and RERA has issued final approval.
The developer initiates the request in TAS, after receiving the required completion approval.
RERA provides formal instructions to the bank to maintain 5% of the collections in the retention account as part of the conversion requirements.
3. What are the key eligibility conditions for escrow account conversion?
The project must:
- Be 100% completed, and
- Be approved by RERA
before conversion can be approved. - Coverage relationship approval (No Mortgage)
Real Estate Account Closure
1. What does “Escrow Account Closure” mean?
Escrow Account Closure refers to the formal closure of an escrow account after receiving client instructions and RERA approval, including the transfer of any remaining balance.
The client initiates the process by providing a closure letter, along with RERA approval and instructions to transfer any remaining funds.
2. How are remaining escrow balances handled during closure?
Any remaining balance is transferred based on the instruction received by RERA/Client, as part of the closure process.
RERA approval is mandatory and must be submitted along with the client’s closure letter before the account can be closed.
3. What documentation is required to proceed with closure?
The required documentation includes:
- Client closure letter
- RERA approval
- Instructions to transfer remaining funds, if applicable.
Please find the below checklist for all documents to be provided (* Mandatory documents):
No. | Process | Status |
Valid Trade License* |
| |
1 | Real Estate Activity mentioned in the Trade License | ☐ |
2 | Developer's name matching with Trade License Company Name | ☐ |
Letter from Consultant* |
| |
3 | Project construction Value to be matching with TAS data | ☐ |
4 | Project Start and Completion Expected End Date matching with TAS data | ☐ |
5 | Project Description matching with TAS data | ☐ |
Project Registration Form* |
| |
6 | Form is fully filled once uploaded in TAS | ☐ |
7 | Company Stamp is available in the form | ☐ |
8 | Authorized Signature is as per the Signature Card along with Name & Designation of authorized signatory to put in agreement | ☐ |
9 | Availability of the Latest Form (30% guarantee) | ☐ |
Technical Report from GIS Section* |
| |
10 | Availability of Contract with cooling company or undertaking signed by authorized signatories | ☐ |
11 | Availability of Official letter providing details of compensation if project delivery is delayed | ☐ |
Bank Guarantee and Percentage* |
| |
12 | Availability of Bank Guarantee or Construction Completion or Cash Escrow Deposits | ☐ |
13 | Total Percentage of Bank Guarantee and Project Completion to be 30% | ☐ |
14 | If Guarantee, validity is until project completion | ☐ |
Building Permits from Licensing Authorities* |
| |
15 | Land number is matching with Title Deed | ☐ |
NOC from the master developer* |
| |
16 | Project Name to be matching as per TAS system | ☐ |
17 | Land Number to be matching as per TAS system | ☐ |
18 | Issuance of the NOC to be still valid and till when | ☐ |
19 | Master Developer Original Stamp | ☐ |
20 | No objection to off-plan sale to be mentioned in the NOC | ☐ |
Dubai Chamber Certificate* |
| |
21 | Valid Dubai Chamber Certificate | ☐ |
22 | Certificate contains Information matching with Registered Developer | ☐ |
Payment Schedule* |
| |
23 | Payment Plans completely filled | ☐ |
Project Details* |
| |
24 | Project Name | ☐ |
25 | Construction Value | ☐ |
26 | Sales Value | ☐ |
27 | Anticipated Start of Construction | ☐ |
28 | Anticipated Completion | ☐ |
29 | Launch Dates | ☐ |
30 | Payment plan to be provided to the bank | ☐ |
Property Development Contract - Optional |
| |
31 | Verify the Contract is as per RERA format (only clause 3 and 4 is amended) | ☐ |
32 | Initials of signatories to be on all pages | ☐ |
33 | Last page to maintain the signatures, name of the signatory, company stamp, and date of signing | ☐ |
Financing Contracts - Optional |
| |
34 | Original is maintained with Escrow Account Department | ☐ |
35 | Financial Contract data to be matching | ☐ |
Project Landowner and Developer (in case the company requires the shareholder (individual)) - Optional | ||
Percentage | Landowner |
|
Owned By- % | ☐ | |
Owned By- % | ☐ | |
Owned By-% | ☐ | |
36 | Initial architectural designs and engineering plans approved by the Competent Entities and the master developer | ☐ |
37 | Financial statement of the estimated cost and revenues of the project certified by an accredited charted auditor | ☐ |
38 | An undertaking by the sub-developer to start the construction works of the project | ☐ |
39 | A Standard sale contract between the Developer and the purchaser | ☐ |