---
title: "Escrow account"
canonical: https://www.uaepropertyagents.com/glossary/escrow-account
markdown: https://www.uaepropertyagents.com/md/glossary/escrow-account.md
type: glossary-term
description: "An escrow account is a regulated, project-specific bank account into which off-plan buyers' payments must go, released to the developer only as building progresses."
publisher: "UAE Property Agents (Omnia)"
language: en-GB
usage: "You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting."
---

# Escrow account

> An escrow account is a regulated, project-specific bank account into which off-plan buyers' payments must go, released to the developer only as building progresses.

Also known as: Project escrow account, Trust account, Escrow.

## What Escrow account means for a buyer

Under Dubai Law No. 8 of 2007, a developer selling off-plan must open a separate escrow account for each project with a bank approved by the [Dubai Land Department](https://www.uaepropertyagents.com/glossary/dld). Every payment a buyer makes goes into that account, and the bank, acting as escrow agent, releases money only for that project's construction and as milestones are certified. Abu Dhabi imposes an equivalent requirement, supervised by [ADREC](https://www.uaepropertyagents.com/glossary/adrec).

Two safeguards follow. The developer cannot move buyers' money to another project, and when the building is finished the escrow agent holds back 5% of the account for a year as cover for defects. If [RERA](https://www.uaepropertyagents.com/glossary/rera) cancels a project, the remaining funds are used to refund purchasers.

For a buyer, the rule is simple: pay only into the escrow account named in your [SPA](https://www.uaepropertyagents.com/glossary/spa) and on the project's registration, by bank transfer or a cheque made out to that account. Never pay a broker, an individual or a developer's general company account. The escrow details for any registered project can be checked on [Dubai REST](https://www.uaepropertyagents.com/glossary/dubai-rest).

Be realistic about what escrow does. It protects against the diversion of funds; it does not protect against delay, a change in the market or a developer running out of sales. If a project stalls with little built, the account may hold less than buyers have paid in, because money has properly been spent on construction.

## Related terms

- [Off-plan](https://www.uaepropertyagents.com/glossary/off-plan): Off-plan means buying a property from a developer before it is built or finished, paying in stages during construction against a registered contract.
- [SPA](https://www.uaepropertyagents.com/glossary/spa): The Sale and Purchase Agreement is the binding contract between an off-plan buyer and the developer, setting the price, payment schedule and completion date.
- [Developer](https://www.uaepropertyagents.com/glossary/developer): The developer is the company that acquires land, obtains approvals, builds a project and sells its homes; off-plan buyers contract with it directly.
- [RERA](https://www.uaepropertyagents.com/glossary/rera): RERA is the regulatory arm of the Dubai Land Department: it licenses brokers and developers and oversees escrow accounts, service charges and tenancy rules.
- [Payment plan](https://www.uaepropertyagents.com/glossary/payment-plan): A payment plan is the developer's schedule of instalments for an off-plan home, usually a deposit, stage payments during construction and a balance at handover.

## In depth

- [Buying off-plan property in the UAE: how it works and how buyers are protected](https://www.uaepropertyagents.com/guides/buying-off-plan-in-the-uae)


---

Source page: https://www.uaepropertyagents.com/glossary/escrow-account. Published by UAE Property Agents, Omnia Capital Group. You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting.