Abu Dhabi - Union National Bank and the Department of Municipal Affairs and Transport– Abu Dhabi (DMAT) organized the first workshop in Abu Dhabi introducing the new regulations on Escrow Account and its implementation. H.E. Dr. Abdullah Ghareeb Al Baloushi the Executive Director – Land and Property Management Sector at the Department of Municipal Affairs and Transport inaugurated the workshop which was attended by Senior Management from UNB and DMAT and the large developers and real estate companies.
This initiative comes as part of UNB’s strategy to strengthen the partnership and the cooperation with major organizations within the framework of the bank’s commitment to support the development in the Emirate of Abu Dhabi and participation in implementation of rules and regulations that organize the Real Estate market in the emirate. It is noteworthy that UNB was the first Bank in the UAE to collaborate with (DMA) and sign the Escrow Account agreement.
In this context, Mr. Mohamed Zein , SVP & Head of Real Estate Finance & Secured Lending Group at UNB, said " We are delighted to collaborate with the Department of Municipal Affairs in organizing this workshop to realize the optimal implementation of the new Real Estate Law along with its Executive Regulations for the key developers”
“The successful implementation of this initiative bears testament to UNB’s strategy to provide convenience and updated services & solutions to all our customers”. He added.
Advisor Yousef Al Kuwaiti, Director of Land, Property Regulations and Registration Division at the Department of Municipal Affairs and Transport, stressed the importance of cooperation between the Department and strategic partners such as National Banks & key developers in order to realize the optimal implementation of the new Real Estate Law along with its Executive Regulations. “The practice is bound to improve the local investment environment, and bring benefit to the local economy, business community and community members besides improving the quality of services delivered to them. Al Kuwaiti hailed the complementary and supporting role of National Banks in furthering the knowledge about the requirements of the new law,” he said.
“The Escrow Account is based on the best real estate practices and safeguards the rights of clients, developers and investors in a fully transparent manner. It also improves the caliber of services offered to them; which in turn will attract more investments and sustain the development of the land and real estate sector”.
“Under the new law, the business process of the real estate sector is based on a host of key drivers including: opening a property development register, opening the initial register, managing & overseeing escrow accounts of property development projects, and registering real estate professionals in the Property Development Register enabling them practice their profession in the Emirate. Training programs have also to be developed to enhance the abilities & competencies of real estate practitioners and all those engaged in the sector with the aim of improving the quality of services delivered as well as increasing the competitiveness and attracting more investments to the sector,” he added.
The Director of Regulations, Land Registrations and Properties at the Department of Municipal Affairs and Transport, urged property developers in the Emirate to expedite registration of their existing and new projects, and submit the master or sub-layout of each project to the Real Estate Registration at the Municipality.
Ms. Chafika Nadir Albaloushi Head of the Project’s Escrow Account at the Abu Dhabi City Municipality, delivered a presentation highlighting the Executive Regulation of the Escrow Account. “This Executive Regulation covers the conditions that govern the functionality of developers and their relationship with investors as well as the conditions required to be fulfilled before undertaking property development projects in the Emirate,” she said.
“Currently escrow accounts are being opened for more than 10 private projects of companies classified as master and sub developers according to registration process and the requirements of the new real estate regulatory law, after completion of their registration with the Municipality. Meanwhile more 16 banks and finance organizations have signed Account Trustee Agreements with the Municipality since the implementation of the new law at the start of this year.
“In a step considered the first of its kind, the Abu Dhabi City Municipality has issued Search Certificate of Property Unit off-plan in the name of an individual investor resident in the Emirate. The Search Certificate shall be treated as an official documentary evidence for safeguarding the right of the investor buying off-plan before the issuance of the final title deed of the unit at the time of handing over to the investor.
“The registration of the real estate project and the opening of escrow account for each project fulfills two main objectives. First, it enables owners of residential units in constructed projects to register such units in the Real Estate Register at the Municipality, and accordingly issue title deeds to owners of the respective units. Second, it enables developers who have registered their projects to start construction works in those projects, and obtain permits for selling property units off-plan according to the requirements highlighted in the law.
“As regards the existing projects, escrow accounts have to be opened in case the project completion rate is less than 70%. Thus, projects that have recorded higher completion rates are exempted. The completion rate is assessed by a specialist consultant appointed by the Department of Municipal Affairs and Transport.
-Ends-
About UNB
Established as a Public Joint Stock Company in 1982, UNB is one of the leading domestic banks in the United Arab Emirates, headquartered in Abu Dhabi. UNB offers a variety of products and services, addressing needs ranging from basic requirements of individuals to the more complex requirements of corporate entities.
Media Enquiries
Mona Zayati
Corporate Communications Manager – UNB
Tel: +971504108400
Email: mona.zayati@unb.ae
© Press Release 2016
