Rera makes changes in escrow trustee pact

The Real Estate Regulatory Agency (Rera) has formulated a new Account Trustee Agreement incorporating certain principal changes, according to an official of National Bank of Abu Dhabi, which renewed its escrow agreement with Dubai Land Department (DLD) and Rera.

NBAD will continue to manage escrow accounts for real estate developers after the bank renewed its Account Trustee Agreement with Dubai Lands Department (DLD) and Real Estate Regulatory Agency (Rera).

“Subsequent to our earlier agreement with DLD, Rera formulated a new Account Trustee Agreement incorporating certain principal changes,” said the official at the time of signing the escrow account agreement.

The new agreement was signed by Abdulla Ghobash, NBAD's Regional Manager Northern Emirates, and Marwan Bin Ghalita, Chief Executive Officer of Rera.

NBAD had signed the first agreement in November 2007, shortly after Dubai adopted Law No. 8 of 2007, Guarantee Accounts of Real Estate Developments in Dubai. The law protects the buyers of off-plan. Under it, buyers would place their payment instalments in an escrow account instead of giving it directly to the developer.

Pursuant to NBAD's agreement with (DLD) on November 21, 2007 the bank set up its escrow department in June 2008 as a part of Corporate Banking Group-Northern Emirates. Currently NBAD manages 15 escrow accounts for various real estate developments in Dubai.