All About Escrow Account Activation Application in Dubai
Dubai’s real estate sector is based on a streamlined system, ensuring transparency and security for investors. One such critical regulation is the requirement for developers to open an escrow account before launching a project. The escrow account activation application in Dubai is a mandatory process governed by DLD to safeguard investment funds and ensure project completion.
Escrow Account Activation Application Procedure DLD
The escrow account activation application procedure by DLD involves multiple steps. It is to ensure compliance with regulations. The process includes the submission of an application to the DLD along with relevant documents.
Steps to Apply for Escrow Account Activation Application in Dubai
The escrow account activation application in Dubai involves the following steps:
- Log in and Submit Application: Access the Oqood portal, navigate to the escrow account section, select the desired service and submit the application.
- Review by Trustee Account: The submitted application is forwarded to the Trustee Account for processing.
- Document Submission: The Trustee Account evaluates the project’s financial capability, uploads the required documents and submits them through the escrow account system.
- Audit by Escrow Account Department: The escrow account department reviews the submitted details and either approves or rejects the application based on the assessment.
- System Update: If approved, the system is updated accordingly.
Documents required for Escrow account activation application DLD

The payment plan of the project is required to initiate the application. A similar procedure and requirement is applicable for every new project in Dubai that developers need to fulfil.
Escrow Account Activation Application in Dubai: Terms and Conditions
Some of the key terms and conditions of the service have been detailed below.
Financial Risk Compliance
A real estate developer must ensure the project meets financial risk criteria before submitting an application.
Technical Report Requirement
A recent technical report issued by the Dubai Land Department (not older than four months) must confirm no red flags in the project’s latest milestones.
Escrow Account Review
The reasons for freezing the escrow account must be assessed.
Escrow Account Activation (Bank Guarantee Option):
- A letter from the Account Trustee confirming receipt of all project escrow account assets.
- Monthly financial statements of the Account Trustee must be uploaded.
- If a bank guarantee is available, the escrow account must be activated until 20% of project completion, based on a recent technical report from the Land Department.
Escrow Account Activation (Developer Contribution)
If funded by the developer, activation must be based solely on deposits from the developer’s own account.
Escrow Account Activation (Financing or Mortgage)
If funded through financing or a mortgage, activation should be based solely on deposits from the mortgagor’s bank account.
Escrow Account Activation (Post-20% Completion)
After 20% of project completion, the escrow account may be activated based on the construction progress, as confirmed by a recent technical report from the DLD.
Amendment of Administrative, Marketing and Tax Expense Caps:
Any request to amend these caps must align with the project’s risk criteria and financial capability. Priority must be given to construction expenses, followed by infrastructure, administrative, marketing and tax expenses before submitting the application.
Infrastructure Considerations (if applicable)
- The project’s master plan must be approved and certified by the main developer.
- A formal request from the real estate developer to the Real Estate Regulatory Authority (RERA) is required to open an infrastructure account, specifying whether infrastructure costs are included in the investors’ Sales and Purchase Agreement (SPA).
- The infrastructure costs of the master plan must be detailed per project on a quarterly basis and approved by the main engineer and Account Trustee.
- A consultant’s report must confirm the current percentage of infrastructure completion, along with a recent technical report from the DLD.
- In case of fund transfers, amounts for each project must be transferred quarterly, subject to approval by the engineer and Account Trustee, for both the infrastructure and real estate project accounts.
On a similar note, there is also a streamlined process of transferring the escrow account with DLD to ensure transparency and a smooth experience.
FAQs
What is the service duration for escrow account processing?
The escrow account activation application service time in Dubai is three days.
Where can I apply for escrow account services?
You can apply through the DLD website via the Real Estate Developers Portal (Contracts) or the Trust Account System.
When is an escrow account required?
An escrow account is mandatory for off-plan real estate projects to ensure financial security and compliance.
What are the service fees for escrow account activation application in Dubai?
The service is free of cost, which adds to the convenience of the applicants.
This was everything to know about the process of escrow account activation application in Dubai. Such know-how is crucial for investing in off-plan properties for sale in Dubai and proceeding wisely.
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