In Dubai, the money you pay a developer for an off plan unit goes into an escrow account opened for that one project.
The rule comes from Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development in the Emirate of Dubai.
The law says the account is “dedicated exclusively to the construction of that Real Estate Development project” (Article 9).
Each project has its own account (Article 9), managed by a bank or financial institution accredited by the Dubai Land Department (Article 2).
Once the building is complete, the escrow agent keeps back 5 percent of the account’s value for one year after the units are registered in the buyers’ names (Article 14).
As of 14 October 2026, from the law as published on the Dubai Legislation Portal, read that day.
What is an escrow account, in the law’s words?
“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)
The escrow agent is “the financial or banking institution accredited by the Department to manage an Escrow Account”. The Department is the Dubai Land Department. (Article 2)
What must a developer do before selling off plan?
| What the law asks | Article |
|---|---|
| Be on the Land Department’s Register of Real Estate Developers and hold a licence | 4 |
| Get written permission from the Land Department before advertising off plan sales, in local or international media or at exhibitions | 5 |
| Ask the Land Department to open an escrow account, with documents including the land title deed, the approved designs, a statement of the estimated cost and revenues certified by an accredited chartered auditor, and a standard sale contract | 6 |
| Keep a separate escrow account for each project | 9 |
What happens to the money in the account?
The account is opened in the name of the project and used only to build it (Article 9).
Payments in it cannot be attached for the developer’s creditors (Article 9).
A loan secured on the project is paid into the same account (Article 13).
The escrow agent reports what comes in and goes out to the Land Department regularly (Article 11).
Can you see the account?
Yes, your part of it. The law lets anyone who paid into the account see their own accounting records and ask for copies (Article 12).
What is the 5 percent held back at completion?
When the developer receives the completion certificate, the escrow agent keeps 5 percent of the account’s total value. It is released to the developer one year after the units are registered in the buyers’ names (Article 14).
What if the project is not completed?
The law gives this duty to the escrow agent: after consulting the Land Department, it takes the measures needed to have the project completed or the depositors refunded (Article 15).
The law also says a developer is struck off the register if, without a reason the Land Department accepts, building has not started six months after permission to sell off plan (Article 17).
What are the penalties?
Jail and a fine of at least AED 100,000, or either one, for among others any person who “knowingly offers for sale Units in fraudulent Real Estate Development projects”, or who “steals, appropriates, or forfeits any amounts of money delivered to him for the purpose of implementing Real Estate Development projects” (Article 16).
Questions buyers ask
Do I pay the developer or the escrow account?
The law says purchasers’ payments are deposited in the project’s escrow account (Article 2). Check that the account in your sale agreement and on your payment receipts carries the project’s name.
Does the DLD registration fee go through escrow too?
It can. DLD’s release of 31 May 2021 lists depositing the fee in the approved escrow account as one of the ways to pay it. Our guide to buying fees covers the fee itself.
Does this law cover every emirate?
No. It is a Dubai law and covers developers selling off plan in the Emirate of Dubai (Article 3).
Which text is official?
The Arabic original. The English text on the Dubai Legislation Portal is a translation, and the portal says the Arabic prevails.
Official sources
“dedicated exclusively to the construction of that Real Estate Development project”
Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development in the Emirate of Dubai, Article 9, issued in Dubai on 6 May 2007.
https://dlp.dubai.gov.ae/Legislation%20Reference/2007/Law%20No.%20(8)%20of%202007.html
DLD, “DLD calls on developers to pay property registration fees within 60 days”, 31 May 2021.
As of 14 October 2026, as published on the Dubai Legislation Portal.
This guide explains the law in plain words. It is not legal advice; read your sale agreement and the official text before you buy.
VILA Properties, RERA ORN 45990, BRN 55719.
