Finance

RERA escrow

Also known as: Escrow account · Off-plan escrow

A RERA escrow is a bank-held account where off-plan buyer payments go. The developer can only draw from it as construction milestones are verified.

An escrow is a bank account held by a neutral third party. In Dubai, every off-plan escrow account must be held at a RERA-approved bank.

When you buy off-plan in Dubai, your deposit and instalments are paid into the escrow — not to the developer.

The developer can only withdraw funds from the escrow as construction progresses. An inspector verifies each milestone, and a set percentage of the escrow is released.

If a project is cancelled, buyers get their escrow funds back under RERA rules. This is the single biggest protection Dubai off-plan has over most other global markets.

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