How off-plan escrow works
- One account per project. Before selling off-plan, the developer applies to DLD to open an escrow account for the project with an escrow agent. The agent is a bank licensed by the UAE Central Bank and approved by RERA. The account is protected from the developer's creditors (Law No. 8 of 2007, articles 6–9).
- Buyers pay into it. Booking payments and instalments for off-plan units go into that account, not into the developer's general accounts.
- Money follows construction. DLD's FAQ says payments go only to contractors, consultants and marketing, after the project's engineer verifies progress. Marketing is capped at 5% of total sales.
- 5% held back. When the completion certificate is issued, 5% of the account is retained. It is released one year after the units are registered in buyers' names (article 14).
Why it matters to brokers and buyers
Escrow is the main financial protection in a Dubai off-plan purchase. RERA's brokerage guide tells brokers marketing off-plan to confirm that the project is registered with RERA and has an escrow account, and to direct buyers to pay into it.
On Nogbase
Nogbase is not a payment processor and never holds buyer or commission funds. Payment plans published on Nogbase show what is due and when. The payments themselves go to the project escrow account.
Frequently asked questions
Which law governs off-plan escrow in Dubai?
Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development in the Emirate of Dubai. RERA regulates and monitors the accounts and approves the banks that manage them.
Can a developer use escrow money for anything?
No. DLD's FAQ says payments go to contractors, consultants and marketing only, with marketing capped at 5% of total sales, and that funds are released after the trustee engineer verifies construction progress.
What is the 5% retention?
Under Article 14 of Law No. 8 of 2007, once the completion certificate is issued the escrow agent retains 5% of the account. It releases that 5% to the developer one year after the units are registered in the buyers' names.
Should a buyer ever pay the developer directly?
Instalments for an off-plan unit belong in the project escrow account. Check the account details in the SPA and the developer's official documents, and ask your broker if anything differs.
Sources
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