Securing Off-Plan Real Estate Projects in Dubai
A mandatory Escrow Audit in Dubai is a critical responsibility for any real estate developer in Dubai governed by RERA and Law No 8 of 2007. This audit provides the necessary verification that funds from off-plan sales are properly managed, protecting the developer, the buyer, and the project’s integrity.
At Alkazim, our RERA-approved auditors deliver meticulous escrow and project trust account audit services, ensuring your project remains fully compliant with the Dubai Land Department (DLD) and on track for successful completion.
What is an Escrow Account Audit?
A Real Estate Escrow Audit is an independent examination of a developer’s project trust account. It is mandated by RERA to verify that all financial inflows from buyers and outflows to contractors are aligned with the project’s construction progress and budget. This process is essential for any RERA escrow account audit.
Secures Buyer Funds
Protects buyers’ investments in off-plan properties by ensuring funds are correctly managed.
Enables Project Progress
Allows for the timely and compliant release of funds to contractors, keeping construction on schedule.
Ensures Legal Compliance
Guarantees adherence to Dubai’s Law No 8 of 2007 concerning real estate trust accounts.
Key Objectives of an Escrow Audit in Dubai
Our audit process is thorough, focusing on three critical areas to ensure complete transparency and compliance.
1. Payment Verification
We reconcile all funds received from buyers against their Sales and Purchase Agreements (SPAs), ensuring every payment is accounted for and deposited into the escrow account on time.
2. Progress vs. Expenditure
Our team verifies that payments made from the trust account to contractors and suppliers directly correspond to the certified progress of the construction project, preventing misuse of funds.
3. Regulatory Adherence
We conduct rigorous compliance checks to ensure all account activities strictly adhere to the regulations set forth by RERA and Dubai’s Law No. (8) of 2007 on Trust Accounts.
Who Requires an Escrow Account Audit?
This audit is essential for key stakeholders involved in Dubai’s off-plan real estate projects.
Real estate developers managing off-plan projects
Trustees and escrow agents managing project funds
Financial institutions and banks funding developments
Investors seeking assurance on a project’s financial health
Our Meticulous Escrow Audit Services
Verification of construction progress against payments
Reconciliation of all buyer funds against SPAs
Thorough compliance checks against Law No. (8) of 2007
Preparation of official audit reports for RERA and the DLD
Advisory on best practices for project trust account management
Ready to Ensure Your Project’s Financial Integrity?
Let our expert escrow auditors provide the clarity and peace of mind you need for your off-plan project. Get a no-obligation quote today.
Case Study: Enabling a Distressed Project Takeover
“A residential project was abandoned, leaving incomplete escrow records. When a new developer took over, we conducted a thorough reconciliation of all unit-wise payments. Our final report provided the critical financial transparency needed to clarify buyer entitlements and gain regulatory approval for the project’s successful continuation.”
Frequently Asked Questions
Q1: Is an Escrow Account Audit mandatory in Dubai?
Yes. For all developers selling off-plan properties, conducting a regular RERA Escrow Account Audit is mandatory to remain compliant and continue project development.
Q2: What is the main purpose of this audit?
The primary purpose of an Escrow Audit in Dubai is to protect buyers’ money and ensure that it is exclusively used for the intended construction and completion of the property they purchased.
Q3: How often is an escrow audit required?
Audits are typically required on an annual basis, or at specific project milestones, to allow for the release of funds and to keep regulators updated on the project’s financial status.
Q4: How is this different from a standard RERA Audit?
While related, they serve different purposes. A standard RERA audit often covers the overall compliance of an Owners Association (JOP), including service charges. An Escrow Audit Dubai, however, is highly specialized, focusing specifically on the project’s trust account to ensure funds for off-plan properties are managed correctly according to the law.