Dubai’s RERA partners with Zand Digital Bank to revolutionize real estate development

He Real Estate Regulatory Agency (RERA), the regulating arm Dubai Land Department (DLD), signed a Memorandum of Understanding (MoU) with ‘Zand Digital Bank‘identifying Zand as an approved bank authorized by DLD to oversee real estate development escrow accounts and offer associated services.

Real estate escrow accounts are specialized bank accounts designated for real estate projects, serving as repositories for funds raised from off-plan investors or project financiers. The primary objective of the escrow account is to expedite the process of building off-plan units, ultimately safeguarding the interests of investors and reinforcing their confidence in the real estate sector.

Marwan bin Ghalita, CEO of DLD Real Estate Regulatory Agencyemphasized that this agreement with Digital Bank aligns with Dubai Land DepartmentChina’s continued efforts to enhance effective cooperation and partnerships with the private sector. The aim is to regulate the emirate’s real estate sector by providing a leading digital infrastructure and innovation incubator for the real estate sector according to the latest standards, as well as improving a safe and trustworthy environment among investors through escrow accounts, online with the objectives of the emirate. to enable digital transformation and adopt the latest technologies.

Michael Chan, CEO of Zandsaying,

“Zand is proud to have been entrusted with this responsibility and we are committed to maintaining the highest level of integrity in the management of the real estate development escrow account. Furthermore, our collaboration with RERA to incorporate blockchain technology and AI reflects our dedication to innovation and our continued pursuit of superior customer service.”

Under the agreement, the account custodian is responsible for establishing a separate escrow account for each project. These accounts are specifically designated to develop the real estate project. Additionally, separate accounts are assigned for each unit within the project to receive payments from buyers for those units. He Real Estate Regulatory Authority is responsible for providing the necessary data to the account custodian, which registered developers require to open and manage an escrow account.

To begin the process of opening an escrow account, developers must submit the required documentation. Once the project is approved by the Real Estate Regulatory Authority, As represented by the Real Estate Development Escrow Account Department, the escrow account is opened by the account custodian based on the project approval certificate. Currently, this process is expedited through an automated process. Developers gain access to the system after being approved as real estate developers enrolled in the developer registry. Submitted applications undergo a review process to ensure that all registration requirements are met and the project is approved. Upon approval, developers are automatically authorized to open an escrow account and select the surveying company responsible for uploading data related to real estate units within the specific project.

News source: Emirates News Agency