Dubai real estate escrow requirements in 2026

Updated 10 November 2026.

Who needs to open the account?

Dubai's Law No. 8 of 2007 covers developers selling off-plan units and receiving purchaser or project-finance payments. Each project needs a separate account with an accredited bank or financial institution.

If you're buying a completed home from an owner, ask the registration trustee about payment arrangements for that transfer.

Source · Dubai Supreme Legislation Committee, Law No. 8 of 2007, Articles 2–3 and 9, issued 6 May 2007; checked 10 November 2026.

What documents does the developer need?

Article 6 lists eight items for the application:

1. Chamber membership: Dubai Chamber membership certificate.
2. Business licence: the developer's trade licence.
3. Land ownership: title deed for the development land.
4. Development agreement: master developer–sub-developer contract.
5. Plans: approved initial architectural and engineering plans.
6. Finances: estimated project costs and revenues certified by an accredited chartered auditor.
7. Construction undertaking: the undertaking to begin works following the relevant off-plan approval.
8. Buyer contract: the standard developer–purchaser sale contract.

Ask DLD and the proposed account trustee for the current submission checklist before commissioning documents. The statute's list doesn't settle a bank's additional checks or charges.

The developer and escrow agent also sign a written account-management agreement and submit a copy to DLD.

Source · Dubai Supreme Legislation Committee, Law No. 8 of 2007, Articles 6–7, checked 10 November 2026.

What should you check before paying?

Ask the developer for the registered project name and number, unit reference, draft sale and purchase agreement, and payment instructions. Put them side by side:

Open DLD's Project Status Enquiry using the project name, project number or land number. DLD also lists Dubai REST as a route. If you can't identify the right project, call 8004488 with its number.

Confirm bank details through a contact you obtained independently. If an email changes the beneficiary or IBAN, resolve that change before transferring.

DLD says amounts received from off-plan buyers belong in the project's escrow account. Ask for separate itemised instructions for registration or other charges; don't assume every line on an invoice has the same recipient.

Sources · DLD, Project Status Enquiry and Development Services FAQ, checked 10 November 2026.

Read the SPA checklist beside your contract. Check Oqood registration separately; a bank receipt and sale registration answer different questions.

When can money leave the account?

DLD's FAQ describes construction stages set out in the developer–trustee agreement. The developer requests payment after a milestone; the trustee's engineer checks the works before disbursement.

Read your contract to see when your instalment falls due: on a calendar date or at a construction milestone. Ask which document supports the payment request.

Hypothetical example: a contract calls for 10% of an AED 2,000,000 price on a stated date. The instalment is AED 200,000. That arithmetic doesn't show that construction is 10% complete, or change a date-based clause into a construction-based one.

Source · DLD, FAQ on escrow disbursements, checked 10 November 2026.

Does escrow guarantee a full refund?

Don't plan around an automatic refund date. Article 15 requires action by the trustee, in consultation with DLD, if a project cannot be completed. Ask DLD which process applies to its current status.

Keep your contract and payment receipts together. Article 12 lets depositors or their representatives request their own accounting records. For a stalled development, start with the cancelled-project guide and confirm whether the project is delayed, under cancellation or formally cancelled.

Source · Dubai Supreme Legislation Committee, Law No. 8 of 2007, Articles 12 and 15, checked 10 November 2026.

What isn't published?

There isn't one published opening fee, minimum balance or bank-account opening deadline in these DLD pages. Ask the bank for dated terms. For your payment history, request a statement from the account trustee.

Before signing, use the MOU, Form F and SPA comparison to identify which agreement sets your payment obligations.

What else do buyers ask?

Is the 5% retention a deduction from my instalment?

Article 14 concerns money retained by the escrow agent after the completion certificate. It doesn't instruct buyers to deduct 5% from a payment. Read your payment terms before changing an instalment.

Can I use an account for another project by the same developer?

Each project has its own escrow account under Article 9. Ask for the account matching the project in your contract.

What if the project is late but payments continue?

Ask the developer to identify the contract clause and payment trigger. Use the handover-delay guide to organise the promised date, notices and project record before seeking advice about your agreement.

Source · Dubai Supreme Legislation Committee, Law No. 8 of 2007, Articles 9 and 14, checked 10 November 2026. The published English translation says the Arabic text prevails.

Before your next payment, ask for a written reconciliation showing the unit, instalments received and remaining balance.