Questions & Answers
Questions & Answers
3 available 3 • View allIs it safe to pay a down payment for an off-plan property before they open an escrow account?


1
Q: Hi,
I am looking to purchase an off-plan apartment in Dubai. The agent said that the developer wants a 10% reservation fee/down payment before the project is officially launched i.e. registered at the DLD.
I have checked RERA and the project is not registered although the developer is licensed and I have been provided with their trade license.
They say the project will be registered with the DLD shortly, but in the meantime they want me to pay the down payment directly to the developer using my credit card.
I am assured that this is a normal process for pre-launch sales to guarantee me the unit that I want.
Is this normal and safe?
Should I insist that I wait until they have an escrow account?



Aug 30, 2024
263
Action against the developer for violating the rules of escrow account



2
Q: Hi,
What action do I take if a developer has accepted cheques from me (towards my 30% off-plan payment plan) that were made payable to the company (and not payable to the specific escrow account for the developer's project I am buying from)?
Is this illegal and voids my SPA contract with the developer?
Thanks for your advice.




Apr 20, 2020
1744
Escrow cheque recovery when the contracts are not signed
0
Q: There was an MOU which was entered between the buyer (we) and seller on 17 February 2020. Due to less valuation by the bank, the contract was revised and the initial agreement was cancelled.
The new agreement was made on 11 March 2020 and it was again cancelled due to error by the agent in the agreement as he had written a wrong size of the apartment.
So the third contract was made but it was not signed due to the global pandemic situation and the selling price mentioned was higher than the agreed price and it was also signed by the seller.
There was no contract thereafter as all the initial contracts were cancelled and as we have given escrow cheque to the agent, they are asking for hefty fees to be paid and then they will release the escrow cheque.
So can you please advise in the given case?

Jun 28, 2020
579
Laws & Regulations
4 available 4 • View allLaw No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development in the Emirate of Dubai 7
This Law applies to developers who sell units off-plan in real estate development projects in the Emirate of Dubai and who should receive payments from purchasers or financiers towards such real property units to the special escrow accounts.
May 6, 2007
11407
Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai 1
This Law establishes interim property register in which sale contracts, off-plan sales, and other off-plan legal dispositions of real property are registered prior to inclusion in the property register maintained by Dubai Land Department.
Aug 14, 2008
4865
Law No. (9) of 2009 Amending Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai 2
The provisions of this Law supersede articles (2) and (11) of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai.
Apr 12, 2009
3145
Executive Council Resolution No. (6) of 2010 Approving the Implementing Bylaw of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai 3
This Resolution approves the Implementing Bylaw of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai.
Feb 14, 2010
5158

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I’ve lived in my building for over 4 years, with the most recent rent being AED 50,000. Each year, the management collects cheques and extra AED 2,400–2,500 cash (no receipt) for management and Ejari fees.
My contract was due for renewal on 15 Feb 2025, but management delayed, demanding a 10% rent increase even though no formal 90-day notice and the RERA index did not allow it.
After a month of excuses, the manager called on 12 March, insisted increase to 55K, and threatened eviction if I refused. When I referenced RDC, he hung up. The next day, he again made unprofessional remarks, so I decided to go with RDC.
I submitted my offer and deposit on 13th March, but the management didn’t respond. The case went to the judge on 14 April he ruled in my favor.
On 30 April, I applied for the execution of the ruling, and RDC says I can renew Ejari only on 8th May at DLD with cheques given to them.
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