How to Verify a Developer and Its Escrow Account Before Paying a Deposit
Off-plan protection in Dubai is structural, not promised — but only if the money actually enters the structure.
Updated 16 Jul 2026 · Regulatory figures per Dubai Land Department and UAE Central Bank published rules — always confirm current schedules
Key numbers, sourced
| Figure | Value | Source | As of |
|---|---|---|---|
| Off-plan escrow requirement — every Dubai off-plan project collects buyer payments into a dedicated RERA-supervised account, released only against construction progress | Dubai Law No. 8 of 2007 (Escrow Law) | Official Dubai regulation | In force 2026 |
| RERA's establishment as the Dubai Land Department's regulatory arm | Dubai Law No. 16 of 2007 | Official Dubai regulation | In force 2026 |
| DLD registration fee on purchase (off-plan Oqood and ready-property transfer alike) | 4% of purchase price | Dubai Land Department official fee schedule | 2026 schedule |
| Registration trustee office admin fee at transfer | AED 4,000 + VAT (≥ AED 500k); AED 2,000 + VAT below | DLD registration trustee fee schedule — confirm the tier at transfer | 2026 schedule |
| DLD-registered Dubai sales, 2026 year-to-date (Jan–mid-Jul) — the register a legitimate project appears in | 92,599 sales · AED 304.8bn (12,164 in June 2026 alone) | DLD registered sales, open data — Sofia Sands Market Pulse, computed nightly | 16 Jul 2026 |
Every figure above carries its source and date; where a number cannot be sourced, we drop it rather than print it.
“The DLD directory check is free and takes minutes, yet it is the step buyers most often skip. With 92,599 sales registered in Dubai so far in 2026 (DLD open data, as of 16 Jul 2026), a legitimate project has no reason to be absent from the register — if it isn't there with a supervised escrow account, I tell clients to walk away.”
Step 1 — verify the project, not the brochure
Every legitimate Dubai off-plan project is registered with the Dubai Land Department and appears in its public project directory with a registration number and an inspected completion percentage. Search the exact project name on the Dubai REST app. Not listed means not registered — and not registered means no escrow supervision over your money.
Step 2 — verify the escrow account
Dubai's Law No. 8 of 2007 requires developers to collect off-plan payments into a dedicated escrow account per project, supervised by RERA and released against construction milestones. Your sale agreement must name that account. Match the name and number against the project's DLD registration before transferring anything.
Step 3 — route every dirham through it
- Pay into the named escrow account only. Booking fees "to reserve the unit" into other accounts are where losses happen.
- Get the Oqood. Your purchase should be registered with DLD as an Oqood; ask for the certificate.
- Compare payments to progress. DLD publishes completion percentages — a payment schedule far ahead of inspected construction is a risk you should consciously price, not discover.
The red flags, plainly
Requests to pay a personal or unrelated company account; a project absent from the DLD directory; "limited-time" pressure to pay before documents are produced; agents offering to hold deposits themselves. Any one of these ends the conversation — there is always another unit.
Ras Al Khaimah
RAK's off-plan market — including the Al Marjan and Hayat Island corridor — is regulated through RAK Municipality, with escrow requirements for registered projects. The corridor's roster is institutional (RAK Properties, Aldar, branded operators), which helps, but the discipline does not change: registration first, escrow named in the agreement, money only into it.
Questions buyers ask
How do I check if a developer is RERA-registered?
Look the developer and the specific project up in the Dubai Land Department's project directory on the Dubai REST app or dubailand.gov.ae. A legitimate Dubai off-plan project shows its registration, its completion percentage and its escrow details there.
What is an escrow account and why does it matter?
Under Dubai's Law No. 8 of 2007, every off-plan project must collect buyer payments into a dedicated, RERA-supervised escrow account, released to the developer only against construction progress. It is the single structural protection off-plan buyers have — which is why you never pay outside it.
How do I verify the escrow account before paying?
The escrow account name and number must appear in your sale agreement and match the project's DLD registration. Pay only by transfer into that named account — never to a personal account, a general company account, or an agent 'holding' the money.
How can I check construction progress on an off-plan project?
DLD publishes project status including inspected completion percentages. Compare the published percentage with the payment schedule you are being asked to follow — payments running far ahead of construction is a risk you should price.
Does RAK have the same escrow protection?
Ras Al Khaimah regulates its own off-plan market through RAK Municipality, with escrow requirements for registered projects. The verification discipline is identical: confirm the project's registration and pay only into the escrow account named in your agreement.
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