Off-plan escrow in Dubai: what DLD's FAQ says

Off-plan buyers in Dubai pay into a project escrow account, not into the developer's general funds. Dubai Land Department's FAQ (read 9 October 2026) says this applies to every developer in Dubai that sells units off-plan.

Off-plan means sold before the building is finished. An escrow account is a bank account opened in the project's name that holds buyers' payments.

What goes into the escrow account?

DLD's FAQ says all amounts received from buyers of off-plan units go into the project's escrow account. So does money from a buyer's mortgage lender and the financing for building the project.

The FAQ says the account may be used only to develop that project. Money in it may not be held for the developer's creditors.

Who holds the account?

The FAQ says a bank or financial institution licensed by the UAE Central Bank to take deposits and operating in Dubai can act as account trustee. The Real Estate Regulatory Agency (RERA) must approve it.

DLD's FAQ names RERA as one of DLD's organisations.

When is money paid out?

The developer and the account trustee sign an agreement listing the main construction stages. When a stage is done, the developer asks for payment. The trustee's engineer visits the site to check. Only then can the trustee pay the contractors and other service providers.

The FAQ says payments go only to contractors, consultants and marketing for the project. It adds that only 5% of total sales can be paid for project marketing (FAQ read 9 October 2026).

When can a project be marketed?

DLD's FAQ says a new project can be launched or announced only after all registration steps are done and an accreditation certificate is issued.

What does escrow not cover?

The FAQ does not say escrow protects a handover date. It says DLD cannot end a contract between developer and buyer at the buyer's request. A buyer who wants that goes to the real estate court.

On a cancelled project, the FAQ (read 9 October 2026) says the liquidation section moves the escrow money to DLD's trust account and pays beneficiaries in full or in proportion, depending on what the account holds.

How can a buyer follow progress?

The FAQ says an investor can follow completion percentages on DLD's project tracking service. Keyva's listing checks page links to DLD's and RERA's own public checks. Keyva is independent and is not part of, or endorsed by, either body.

Updated 9 October 2026: figures and wording corrected.