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New Escrow rule

Discussion in 'Dubai property' started by Wannaberich, May 8, 2008.

  1. Wannaberich

    Wannaberich New Member

    Is anyone aware of a new rule brought into place the last few days where an agent cannot sell a re-sell property unless it is registered with Escrow,even
    if construction started before Escrow was formed?
     
  2. Sixgun

    Sixgun New Member

    Not heard that exactly.

    I have heard though , that whereas a developer could previously have an escrow account for one development, it now has to have a seperate escrow account for each and every individual apartment.
    My developer (Profile) told me this, and it's a massive headache for them
     
  3. Roshan

    Roshan New Member

    ESCROW is on big time. Developers will no longer be able to screw around and dodge developers.

    From what I heard from RERA is "Do not pay if there is no Escrow. Payments will have to go into a trust account".

    I spoke to my developer and he emailed me a letter which looks more like a RERA approval and insisted it's a letter for ESCROW compliance.

    WATCH OUT : The developer usually tries this trick and one should not fall for it. I just asked him to provide the Trust account number if he says that he is Escrow compliant. Again, he will confuse you with the RERA registration number, ask him which bank you have the trust account.

    I will be visiting RERA with my papers and I will post the details.

    The time for Fly by night developers is out.

    In time to come only licenced developers can buy land in Dubai. What was happening was investors used to buy land and flip and when land turns hand several times, automatically the cost of development goes up and the developer starts charging more to cover the overheads.

    RERA might be a bit slow but they are on the job.

    Regards

    Roshan
     
  4. Hi Tech

    Hi Tech New Member


    Roshan,

    You are very correct, things will get even tighter, I have heared that RERA is in the process of implementing an inspection regime themselves to inspect the progress of construction and they will approve the money coming out from the Escrow accounts banks.

    So if construction is delayed by even one month it RERA will be on the devleoper's case to know why construction is being delayed. Massive operation but very important .. what do you think?

    REgards,

    An Insider
     
  5. memo123

    memo123 Member

    More Clarification please?

    Dear Roshan
    I paid my first installment to my developer , and things didn't feel right , so I gave them notice that I will not pay any penny in the developer name or account , and I want an escrow account number to pay to , and as you have advised us to ask for the RERA registration number, so they sent me the escrow account number and details to telex transfer my money , however how can i check that this is an escrow account?
    and from what i have seen each building have one escrow account and not each apartment! as mentioned here.
    The developer told me that i can sell my apartment with no problem without even being in Dubai as they are complying with all requirements in terms of escrow or RERA. but I have seen women , 2 weeks ago when i was in Nakheel Dubai , that couldn't sell her property and her lawyer was with her , they told her to go and register her apartment , then she can come back and sell it .
    as a foreigner to all of this , it sounded all Chinese the women started swearing and things were a mess and this why we heard the whole story .
    can you please clarify , and tell me , now if we want to sell our property we have to go to Dubai and register the property then sell it?
     
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