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Solicitor Advice on ESCROW account

Discussion in 'Dubai property' started by samar, Jul 4, 2008.

  1. samar

    samar New Member

    I have invested in Jumeirah Village knowing that the developer has an ESCROW account, but developer asked me to pay into a currency exchange in UK, this exchange company is supposed to transfer money to relevant ESCROW account but I do not get any receipt by the Developer or any statement from the Bank. All I get is a receipt which says that " you money has been received by ACW Holdings". Problem is that the letter is issued on Skycom letterhead and no evidence is shown to prove that the money is actually being transfered to the ESCROW account.

    When I asked currency exchange company to confirm the account number they have transfered the money to, they said " because you have come to us through Skycom, we can not provide you any details, you should ask Skysom".

    Can anybody advice that the receipt can be issued by 3rd company on behalf of Developer? Why Developer himself can not issue a receipt and why a statement from the Bank can not be shown to the buyers.
     
  2. Wannaberich

    Wannaberich New Member

    You should insist that you will only pay directly into an Escrow account.The whole idea of Escrow is to avoid mis-use of funds by developers.If u pay to a third party then the point of Escrow is by-passed.I would also think this is illegal.
    If they still tell you to pay to the third party then tell them you will inform RERA if they do not allow you to pay into Escrow.
     
  3. sgaur

    sgaur New Member

    Samar

    I have also invested in project of ACW holding. But I transfer the amount to their Escrow account and I checked on RERA website before transferring this amount.

    1. Whether this project is registered with RERA. Although, registration is mentioned on their website but I double checked on RERA website about registration of this project.

    2. RERA website has also mentioned about the bank details and escrow account of this project. So, I matched the bank details sent by Skycom with bank details on RERA website.

    I am in process of signing the contract for this project with ACW holding. Once contract will be signed, I will push ACW to send me the reciept of money received. You should also transfer the money to escrow account instead of transferring through exchange.

    About receipt by third party, it depends on the contract signed between 2 parties. if contract says that receipt can be issued by third party on behalf of ACW holding then I believe that that will be enough to safegaurd your interests.
     
    Last edited: Jul 5, 2008
  4. samar

    samar New Member

    Thanks for that guidance. In future I'll pay directly, though an account in Dubai Islamic Bank would have been better but DIB have refused to open non-resident account for UK residents (some GC countries can open such account). Transferring through UK money exchanges is ok though not easy to get confirmation of transfer by DIB. Any comments?
     
  5. sgaur

    sgaur New Member

    I am also transferring through exchange company to ACW holding account. But they provide me full details of account in which the money is transferred. This is because banks in Kuwait do not give better exchange rates and their transfer charges are very high.

    ACW holding is not related to this exchange company. I transfer through any exchange company in Kuwait.

    But I will ensure this point in my contract that Skycom will send the receipts on behalf of ACW holding.
     
    Last edited: Jul 6, 2008
  6. DubaiMortgages

    DubaiMortgages New Member

    I also have invested with ACW, dont worry your money is safe. I have visited them in the UK and the UAE and know the CEO personally. Your funds go to the escrow whether you deposit it from the UK or the UAE.

    Regards

    DM
     
  7. samar

    samar New Member

    ACW Holdings

     
  8. reasonant

    reasonant New Member

    The best option is to ask any third party to provide you with a copy of the agreement or authority letter that exists between it and the Developer. Such document is valid if it has been legalized, notarized and validly consularized before the authorities.
     
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