Zand Digital Bank has signed an MoU with the Real Estate Regulatory Agency (RERA), the regulatory arm of the Dubai Land Department identifying the neobank as an approved bank to oversee real estate development escrow accounts and offer associated services.
Real estate escrow accounts are specialised bank accounts designated for real estate projects, serving as repositories for funds collected from off-plan investors or project financiers.
The primary objective of the escrow account is to streamline the construction process for off-plan units, ultimately safeguarding the interests of investors and bolstering their trust in the real estate sector.
Marwan bin Ghalita, CEO of RERA said the agreement with Zand Bank Digital aligns with Dubai Land Department’s ongoing efforts to enhance cooperation and effective partnerships with the private sector.
“The purpose is to regulate Dubai’s real estate sector by providing a leading digital infrastructure and an innovation incubator for real estate per the latest standards, as well as by enhancing a secure and reliable environment among investors through escrow accounts,” Ghalita added.
Under the agreement, the account custodian is responsible for establishing an independent escrow account for each project. The accounts are specifically designated to develop the real estate project. Similarly, separate accounts are allocated for each unit within the project to receive payments from buyers for those units.
The RERA is responsible for providing the necessary data to the account custodian, which registered developers require to open and manage an escrow account. To initiate the process of opening an escrow account, developers must submit the required documentation.
