A project escrow account is an important part of an off plan purchase review. It does not replace checking the exact project, sale contract and payment instructions, and it should not be presented as a guarantee of delivery, investment value or an immediate refund.
The most useful questions are specific: which project is being funded, which account and trustee are identified, what payment is due and which legal process applies if something goes wrong? This guide is general information, not investment, legal or tax advice.
Understand the fund controls without overstating them
The ADREC legislation collection, reviewed on 2 October 2026, publishes Law No. 2 of 2025 amendments. Amended Article 19 limits project escrow spending to establishing and completing the project and finance payments within the account agreement. It prohibits using those funds for the project's land price or broker commissions.
The same article contains a 20 percent construction threshold and an alternative bank guarantee route for earlier disbursement. Therefore, saying that money can leave only after every construction milestone is independently certified is too broad.
Ask which rules and approvals apply to the actual project. The presence of an account number on a brochure does not establish compliance with every requirement.
Understand the early withdrawal route
DMT's announcement dated 27 March 2026 explains that Decision No. 24 of 2025 regulates disbursements before 20 percent completion through controls involving bank guarantees and approved cost estimates.
That is a regulated exception, not permission for any developer to withdraw at will. It also does not allow a reader to infer that a particular project has used, qualified for or breached the route.
If the distinction matters to your purchase, ask for a project specific explanation from the responsible authority or adviser. This article does not verify any developer's individual escrow approvals.
Separate three different problems
| Situation | Evidence to assemble | Question needing confirmation |
|---|---|---|
| Delivery appears delayed | Contract, notices, dated status evidence and payment record | Which obligation or remedy applies to this delay? |
| Purchaser payments are disputed | Payment schedule, receipts, notice and correspondence | What is the alleged breach and applicable response process? |
| A project is said to be cancelled | Actual authority or contractual notice, not a rumour | What decision was made and which process governs it? |
DMT describes Decision No. 165 of 2025 in connection with purchasers breaching off plan contracts and refunds following unit cancellation and resale. That is not interchangeable with an entire project being cancelled.
Do not use a generic refund percentage or a promised number of working days without confirming the relevant legal route, facts and decision. This review withdraws the previous article's universal cancellation refund table and timetable.
Match the project, contract and payment destination
Before a payment, assemble a simple record that identifies the developer, project, phase and unit. Compare those details across the documents you have received. A similar marketing name is not enough when several phases or legal entities are involved.
Ask for confirmation of the registered project and applicable escrow arrangement through the appropriate official or authorised channel. Check that payment instructions correspond to the transaction being reviewed.
When account details change, verify them independently using contact details obtained separately. A reply within the same email chain or a forwarded screenshot is not independent confirmation. Do not publish account details, buyer identity documents or receipts in a public enquiry.
These are practical verification steps, not a substitute for the responsible bank, regulator or legal adviser validating the arrangement.
Keep payment obligations separate from construction assumptions
Read the actual payment schedule rather than assuming every instalment is triggered by the same event. Identify whether a stated date, construction event or another contractual condition makes a payment due, and have uncertainty resolved before relying on it.
Create a dated record of the requested payment, the contractual reference, the confirmation obtained and the receipt. If an amount or milestone is disputed, obtain advice on the appropriate response. This guide does not recommend withholding a contractual payment or ignoring a notice.
A marketing update is not necessarily the document used for a regulatory or contractual decision. Keep the source and date of each status statement visible.
Evaluate the home as well as the protection
Escrow controls do not establish whether the chosen layout, location, completion assumption or total cost suits the buyer. Review those questions separately using the exact project and unit.
The development guides distinguish available project evidence and source limitations. Do not infer that a developer sold transaction is necessarily an unfinished home, or use an island price median as proof of the value or safety of a specific off plan purchase.
Before committing, write down the confirmed arrangement, the unresolved questions and who will resolve each one. Obtain qualified advice on the contract, applicable jurisdiction and any refund or enforcement issue. The answer should be based on the actual documents, not the reassuring word escrow alone.