UAE off-plan and escrow glossary
Short answer
These are the terms that come up in every off-plan escrow conversation in the UAE, defined in plain English. Each definition is deliberately short: enough to use the word correctly in a meeting or a reconciliation file. Where a term has a legal definition, the regulator's wording prevails.
Updated: 28 October 2026
Escrow account
A restricted bank account that holds money for a specific purpose under the control of a third party. For UAE off-plan projects, buyer payments must be paid into that project's escrow account rather than into the developer's own accounts.
Escrow trustee
The bank approved to hold and control an off-plan project's escrow account. It releases funds to the developer against evidence such as certified construction progress, rather than on the developer's instruction alone.
Oqood
The Dubai Land Department's register of off-plan sale contracts. A unit is recorded in Oqood before it is registered in the title registry at handover, and that record is what ties a buyer to a specific unit.
SPA (Sale and Purchase Agreement)
The contract between developer and buyer that sets the price, payment schedule and delivery terms. The payment schedule in the SPA is the reference every instalment is checked against during reconciliation.
RERA
The Real Estate Regulatory Agency, the arm of the Dubai Land Department that regulates Dubai's real estate sector. It covers off-plan sales and the licensing of developers, brokers and projects.
DLD (Dubai Land Department)
The Dubai government authority responsible for registering property and regulating real estate transactions in the emirate. It oversees escrow requirements for off-plan projects and maintains the land and unit registries.
DIFC
The Dubai International Financial Centre, a financial free zone with its own legal framework, courts and real property registry. Property inside the DIFC is registered and regulated under DIFC rules rather than the mainland Dubai Land Department framework.
ADREC
The Abu Dhabi Real Estate Centre, the emirate's real estate regulator, which oversees licensing and off-plan activity in Abu Dhabi. Its framework is separate from Dubai's, with its own approvals and reporting expectations.
Post-dated cheque
A cheque dated in the future, given by a buyer to cover an instalment that is not yet due. The developer holds it and deposits it on or after its date, and the money is only collected once the cheque clears.
Direct debit mandate
An authorisation, signed once, allowing a payee to collect agreed amounts from a payer's account on agreed dates through the UAE Direct Debit System. It replaces a stack of post-dated cheques with a single digital authority to collect.
UAE PASS
The UAE's national digital identity system, used to sign documents and authenticate transactions online. Electronic direct debit mandates are typically signed and authenticated with UAE PASS.
Virtual account
An account number issued under a real bank account that identifies who is paying, without creating a separate legal account. In escrow it is used as one number per unit, so each transfer is attributed as it arrives.
IBAN
International Bank Account Number, the standard identifier for a bank account across borders. A UAE IBAN begins with AE and includes the bank code and account number after the check digits.
Reconciliation
The process of proving that your records match what the bank actually holds. In off-plan escrow it means matching every receipt to a unit and confirming the bank balance equals the sum of the unit balances.
Handover
The point at which a completed unit is delivered to its buyer. Around handover, per-unit balances must be settled, final escrow releases are made, and the unit moves from the off-plan register to the title registry.
Retention
A percentage held back from amounts otherwise due, typically to cover defects or incomplete works, and released after a defined period or event. In escrow terms it is money deliberately kept back when other funds are released.
Release
A transfer of escrow funds to the developer, approved against defined evidence such as certified construction progress. Each release reduces the project's escrow balance and should reconcile to the units and works it covers.
Post-handover payment plan
A payment plan in which part of the purchase price is paid after the unit is handed over, usually across two to three years. Collections continue after the project's main escrow releases and need their own ledger.
Frequently asked questions
Is Oqood the same as a title deed?
No. Oqood records the off-plan sale contract before completion, while the title deed is issued when the unit is registered after handover. Finance teams use the Oqood record during construction and the title record afterwards.
Does a DIFC property get registered with the Dubai Land Department?
DIFC property is registered in the DIFC's own real property registry under DIFC law; the mainland registration process does not apply. Confirm the specific arrangements for each project with the DIFC registry.
What does an escrow trustee actually do?
It holds the money and controls the releases. The developer requests funds against evidence, usually certified construction progress, and the trustee decides whether the conditions are met before releasing.
Written by
Shamaz Khan, founder of Rasikh; previously ran Quantl, a regulated private-markets brokerage in the UAE.
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Request my health checkGeneral information, not legal advice. Rules, regulator practice and bank products change; confirm the current position with your escrow bank and the relevant authority before acting.