Escrow Account
In Dubai property, an escrow account usually means the bank account of an off-plan project into which buyers’ payments are deposited. Dubai’s escrow law requires it for developers who sell off-plan.
Definition
Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development in the Emirate of Dubai defines the escrow account as “the bank account of a real estate development project in which the payments made by purchasers of Units sold off-plan or by the financers of the project are deposited” (Article 2). A developer who wishes to sell units off-plan must ask the Land Department to open one (Article 6), and the account is “dedicated exclusively to the construction of that Real Estate Development project” (Article 9(1)).
What it shows — and what it does not
Paying into a project’s escrow account means the payment is held for that project under the law. It does not register you as owner: units sold off-plan are recorded in DLD’s provisional register through the developer’s initial-sale registration (Oqood).
Three things people call “escrow”
The word is used for three different arrangements. Check which one a contract, agent or payment request actually means before you pay.
Project escrow account (off-plan)
Who holds the money: a bank account opened for one development project under Law No. (8) of 2007, controlled under DLD supervision. Instalments for an off-plan unit are paid into it.
What to check: the account name and number on the payment schedule match the project registered with DLD; the unit is recorded in the provisional register (Oqood).
Deposit or settlement in a ready-property sale
Who holds the money: there is no DLD escrow account for a resale. The deposit and the price are paid as the parties agree in the sale contract — commonly by manager’s cheque handed over at the registration trustee office on the transfer day, where the transfer and the payment happen together.
What to check: who the cheque is made out to, when it is released, and what happens to the deposit if the sale does not complete. These are contract terms, not a regulated escrow.
Private custody or payment service
Who holds the money: a company that offers to hold or route a buyer’s funds for a fee, sometimes marketed to overseas buyers. It is a separate commercial service with its own terms, charges and licensing, not the Law 8 of 2007 account.
What to check: which entity holds the money, under what licence, its fee, how and when funds are released, and what happens if the transfer fails. Ask for these in writing before sending money.
Conveyance does not hold purchase money or deposits. Our role is to coordinate the transfer and tell you what each payment is for and when it is due.
Example
Illustrative example: an off-plan buyer’s payment schedule names the project’s escrow account as the payee for each instalment. A deposit on a ready-property resale is a different arrangement, set by what the buyer and seller agree.
Next step
Read how the two routes differ in Off-plan and ready-property transfers.
Source: Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development in the Emirate of Dubai — Dubai Legislation Portal · supports: the definition, the developer’s duty to open the account and its use for construction · checked 10 October 2026
Source: Request to register the initial sale — Dubai Land Department · supports: provisional registration of units sold off-plan · checked 10 October 2026
Source: Property sale registration — Dubai Land Department · supports: registration of a ready-property sale at a registration trustee, where transfer and payment take place · checked 17 October 2026
Governance
- October 18, 2026
Maintenance: Updated for material UAE authority/trustee process changes and recurring user confusion. Method: Editorial Policy