The 5% escrow retention after completion (DLD FAQ, 9 Oct 2026)

Dubai Land Department's FAQ (read 9 October 2026) says Article 14 of the Escrow Account Law keeps 5% of the total amount paid into a project's escrow account for one year after the project is completed. The FAQ says this is a guarantee that the developer or contractor deals with defects promptly.

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

Which defects does the retention cover?

The FAQ (read 9 October 2026) says the 5% retention covers defects that are clear on completion or that may appear within one year after handover.

The FAQ ties the retention period to "the completion of the project". It ties the defects to the year "after handover". It does not explain how the two dates relate for a given unit.

How is money paid out before that?

The developer and the account trustee agree a list of main construction stages. When a stage is done, the developer's project manager tells the trustee and 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 escrow 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 did the law take effect?

The FAQ says the Escrow Account Law took effect on 28 June 2007, when it was published in the official newspaper.

What does the FAQ not say?

It does not say how a buyer claims against the retention, or who decides whether a defect has been fixed. It gives a separate email for the Real Estate Escrow Account Department.

For a dispute with a developer, the FAQ says DLD cannot end a contract at the buyer's request. The buyer goes to the real estate court, and DLD's role is limited to reconciling the parties.

Where can a project's details be seen?

DLD's open-data portal has a Project tab that shows each project's escrow account number, status and completion date (portal read 9 October 2026).

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.

This page reports what DLD publishes. It is not legal advice.

Updated 9 October 2026: figures and wording corrected.