Dubai RERA will be escrow signing body

Dubai RERA is Real Estate Regulatory Authority which was established in July 2007 by the Vice-President and Prime Minister of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum. RERA is a part of Dubai Land Department that regulates licenses and manages all Dubai real estate related activities and transactions. It has been decided that from now on Dubai RERA will be the escrow signing body. The agreements pertaining to the management of guarantee accounts will now be related between the account trustees and Real Estate Regulatory Authority. This news was reported according to an agency official in Emirates Business 24/7.

The Trust Account Administration Director, RERA, Khalid Al Mutaiwai told the agency official: “The new agreements, titled 'Guarantee Account Trustee Agreements', will mention yearly charges that will now be payable by the trustee banks to Rera. Rera is expected to send out the new agreements to the Account Trustees or escrow banks, in a couple of weeks' time." The new agreements which are coming up will specifically outline detailed information about the management of the guarantee accounts.

As per the guidelines that have been mentioned, four major allowable account heads have been created for the payment out of the escrow account. The escrow account is basically a trust account which is being held in the name of the borrower to pay debts including insurance premiums and property taxes etc. The four heads that have been decided for the payment from the escrow account are: construction, project management, land and sales and marketing. Thus, RERA engages itself as a transparent and an effective regulatory body formulating various entities.