Dubai has issued law number 8 which governs how payments made by buyers into off plan project be made available to the developers, it will only be released on the order of the Dubai Land Department.Dubai’s Land Department governing trust account conditions for real estate developments. The trust account service will ensure that payments made by investors towards “off plan” property purchases are protected until residential units are registered in the buyer’s name. Property developers across Dubai now have to hold a guarantee account with one of three financial institutions that are in partnership with Dubai’s Land Department. Money paid by buyers or financiers towards properties will be deposited into a trust account with the respective institutions. Developers can then apply for the money to be released by the trust account manager by producing a certificate from a consultant certifying that the project has reached an agreed stage.
Wednesday 1 August 2007
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