How Dubai's Escrow Law Protects South African Off-Plan Buyers
How Dubai's escrow account law protects South African off-plan property buyers, and what to check before paying a deposit.
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A 2026 guide for South African buyers on how Dubai's escrow law protects off-plan property payments.
Dubai Real Estate Insights · For SA Investors How Dubai's Escrow Law Protects South African Off-Plan Buyers Sending money out of South Africa to pay for an off-plan Dubai property understandably raises questions about where that money actually goes — it isn't straight to the developer. This Banke guide explains the protection in place. The Legal Basis Under RERA Law No. 8 of 2007, every DLD-registered off-plan project must hold buyer payments in a dedicated escrow account at a UAE-licensed bank — not in the developer's general operating account. Developer Commitments Before Selling A developer must complete 20% of construction before selling units, or deposit 20% of the total project value into escrow as a guarantee — a real financial stake before collecting a single Rand of your investment. Funds Release Only on Verified Progress Money unlocks in tranches only after independent engineering inspectors confirm specific construction milestones through the Dubai REST app — the escrow bank can't release funds simply because the developer asks. Protection Even After Handover 5% of the total construction value stays in escrow for a full year after handover, and if a project is cancelled, buyers can claim refunds from the escrow account, with those funds generally ring-fenced from the developer's other creditors. Talk to Banke Contact Banke to confirm a specific off-plan project's escrow and registration status before you commit funds.
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