Top FAQs About Escrow Accounts in Dubai (2025)

Buying property in Dubai-especially off-plan, can be an exciting opportunity, but it also comes with important financial considerations. A common question many buyers ask is, “Where does my money go after I make a payment?” The answer lies in the escrow account—a key safeguard designed to protect your investment.

Originally introduced as a buyer protection measure, escrow accounts are now a legal requirement for all off-plan property transactions in Dubai. Yet, despite being a standard part of the process, there’s still a lot of confusion around how they work, why they’re necessary, and the security they provide. Below, we answer the most frequently asked questions about escrow accounts in Dubai for 2025.

1. What exactly is an escrow account?

An escrow account is a secure bank account where payments for off-plan properties are held. Instead of going directly to the developer, the money stays in this account and is released gradually, only when construction milestones are completed and approved by the Real Estate Regulatory Agency (RERA). It’s designed to make sure your money is used solely for building the property you’re buying.

2. Is it required by law in Dubai?

Yes. According to Dubai Law No. 8 of 2007, escrow accounts are mandatory for all off-plan real estate projects. This law ensures that payments are managed in a transparent and regulated manner, reducing the chances of fraud or project delays.

3. Who controls the escrow account?

Only banks approved by the Dubai Land Department (DLD) are allowed to manage escrow accounts. These banks operate under strict oversight and release funds only after receiving confirmation from RERA that certain construction stages have been completed.

4. How does the escrow account protect buyers?

It offers strong financial protection. Since payments are not accessible at will, funds are safeguarded and tied directly to the progress of the project. This ensures your money isn’t misused and reduces the risk of investing in a stalled or abandoned project.

5. How can I check if a project has an escrow account?

You can verify whether a project has a registered escrow account using the DLD REST app or by contacting RERA. This step is important and should always be done before making any payment toward an off-plan property.

6. What if the project is delayed or canceled?

In such cases, RERA may intervene. The funds remaining in the escrow account may be refunded to buyers or redirected to ensure the completion of the project under new arrangements. The system is designed to prioritize buyer protection in these scenarios.

7. Can I make payments directly to the escrow account?

Yes - and it’s the safest way to pay. Transferring funds directly to the escrow account ensures that your payment goes into a secure, regulated environment, completely separate from any operational or private accounts.

Final Thoughts

Escrow accounts have become an essential part of Dubai’s property landscape, offering transparency and peace of mind, especially for off-plan buyers. Whether you're investing for the first time or expanding your portfolio, understanding how escrow accounts work is key to making safe, informed decisions. For expert guidance on verifying escrow details or navigating the off-plan purchase process, Trustin.ae is here to support you every step of the way. Contact us today.

‍

‍