Dubai Real Estate Escrow Account Updates
Falcon City of Wonders – a premium tourist, residential and recreational real estate development in Dubai Land has been registered under Dubai Land Department’s new real estate law no. 8. This law which came into force from June 28 necessitates the use of escrow accounts by real estate developers in Dubai. Falcon City is the first mega real estate project in Dubai to have taken the initiative. Other major development in the real estate escrow account matrix has been the addition of a special arrangement. Now even offshore real estate developers aiming to build properties in Dubai can open escrow accounts through Dubai’s Real Estate Regulatory Agency.
Real estate developers who wish to open escrow or trust accounts are required to submit certain papers, including their trade licence. Meanwhile, Tamweel PJSC has been officially awarded the status of a real estate escrow account agent. For the first time, the Dubai Land Department has given this appointment to a mortgage provider in Dubai real estate market. With the help of a sprawling network of partner developers, Tamweel will convert current projects of 75 Dubai real estate developers into an escrow framework. Another real estate mortgage provider in Dubai – Amlak Finance has also been given permission to launch escrow account services.
The Real Estate Regulatory Agency is taking steps to ensure full participation by real estate developers in Dubai. It seeks to address cases where real estate developers in Dubai are still taking payments directly from Dubai property buyers. From now on, permits will only be given out to new Dubai real estate projects that have an escrow account. All real estate projects in Dubai have to be under the escrow accounts by the 28th of December, 2007. However, there are three kinds of real estate developments and the following rules will be implemented on them respectively:
1. 70 to 80 percent complete projects: Do not need to open an escrow account.
2. Projects that have crossed the shoring stage: Need to open an escrow account by December 28, 2007.
3. Projects that have not yet reached the shoring stage: Need to open an escrow account immediately.
The real estate regulatory law has been formulated in order to protect the rights and interests of all parties involved in the Dubai real estate market. The said escrow accounts need to be opened at banks that have been given a green signal by the Dubai government. The escrow or trust accounts are managed by the Land Department’s Real Estate Regulatory Agency.
Real estate developers who wish to open escrow or trust accounts are required to submit certain papers, including their trade licence. Meanwhile, Tamweel PJSC has been officially awarded the status of a real estate escrow account agent. For the first time, the Dubai Land Department has given this appointment to a mortgage provider in Dubai real estate market. With the help of a sprawling network of partner developers, Tamweel will convert current projects of 75 Dubai real estate developers into an escrow framework. Another real estate mortgage provider in Dubai – Amlak Finance has also been given permission to launch escrow account services.
The Real Estate Regulatory Agency is taking steps to ensure full participation by real estate developers in Dubai. It seeks to address cases where real estate developers in Dubai are still taking payments directly from Dubai property buyers. From now on, permits will only be given out to new Dubai real estate projects that have an escrow account. All real estate projects in Dubai have to be under the escrow accounts by the 28th of December, 2007. However, there are three kinds of real estate developments and the following rules will be implemented on them respectively:
1. 70 to 80 percent complete projects: Do not need to open an escrow account.
2. Projects that have crossed the shoring stage: Need to open an escrow account by December 28, 2007.
3. Projects that have not yet reached the shoring stage: Need to open an escrow account immediately.
The real estate regulatory law has been formulated in order to protect the rights and interests of all parties involved in the Dubai real estate market. The said escrow accounts need to be opened at banks that have been given a green signal by the Dubai government. The escrow or trust accounts are managed by the Land Department’s Real Estate Regulatory Agency.
posted by Property Reporter at
10:40 PM
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