Bank of Sharjah, one of the leading banks in the region, announced today that it has been authorized by the Real Estate Regulation Authority (RERA) of the Dubai Land Department to open and operate Escrow accounts for property developers who are registered with RERA.
An agreement to this effect was signed in Dubai between Mr. Jumaa Bin Humaidan, Assistant Director General of the Dubai Land Department and Mr. Varouj Nerguizian, General Manager of Bank of Sharjah. The signing ceremony was also attended by senior officials of the Dubai Land Department and Bank of Sharjah.
The agreement is in accordance with the regulations of Law No. 8 issued in 2007 by His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
The Escrow legislation protects any party that wishes to sell units from a property development plan prior to the project's completion or while in the process of construction, by placing all the payments in an authorised escrow account till the completion and handover of the project. Approved developers are required to open a separate escrow account for each of their projects
Mr. Jumaa Bin Humaidan, Assistant Director General of Dubai Land Department, pointed out that the escrow legislation was an effective way towards offering greater transparency in all property deals by providing buyers and developers complete peace of mind in their transactions while ensuring that their investments are protected at all times.
'Dubai's real estate industry is developing at a frenetic pace and we need to ensure that our legislations can firmly place our industry on par with international standards,' Jumaa Bin Humaidan said. 'The support of organisations such as Bank of Sharjah confirms our belief that the escrow legislation is a step in the right direction.'
'We are honoured to be selected to provide Escrow management services to support the region's construction boom and proactively creating value to our business partners,' explained Mr. Varouj Nerguizian, General Manager of Bank of Sharjah.
'The escrow service is in line with Bank of Sharjah's strategy to offer this value-added solution tailored to suit the business requirements of real estate developers and giving owners the comfort of having a banking institution take care of the financial and administrative aspects,' he added.
At the same time, developers can also avail of Bank of Sharjah's important escrow solutions such as management of project receivables, guidance on completion of Lands Department formalities, account opening services as well as balance management services.
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