DIFC Registrar of Real Property has signed an agreement with top UAE bank Emirates NBD allowing the lender to open accounts for owners’ associations (known as Bodies Corporate) in the DIFC jurisdiction.

This agreement is aimed at promoting the proper utilization of owners’ contributions to the owners’ association in accordance with DIFC Strata Title Law, said Jaber Al Suwaidi, the DIFC Registrar of Real Property after signing the agreement with Samir Sahu, the deputy GM and head of Transaction Banking Services and Sharad Agarwal, the head of trade sales, Factoring & Escrow Services, Transaction Banking Services at Emirates NBD.

Under agreed terms and conditions, the bank opens “escrow accounts” in the name of owners’ associations in DIFC and acts as a trustee of these accounts for owners’ deposits and withdrawals to pay suppliers and service providers.

Speaking at the signing ceremony, Al Suwaidi said, "To safeguard an owners’ contribution, while promoting integrity and transparency in the use of these funds, we now require all Bodies Corporate established under the DIFC Strata Title Law, to have a suitable escrow arrangement in place with an approved account trustee."

"We are pleased to partner with Emirates NBD and provide the option for Bodies Corporate within the DIFC jurisdiction to use Emirates NBD for the required escrow account services," he stated.

Mahdi Kazim, the general manager - Large Corporates and Global Banking, Emirates NBD said, “Under this agreement, Emirates NBD is now able to open escrow accounts for owners’ associations in the DIFC, into which collection of service charges contributions from owners are deposited, and their disbursement is regulated as per DIFC guidelines.”

Emirates NBD is the first bank appointed by owners’ associations within DIFC to provide escrow account services through a process approved by the DIFC Registrar of Real Property.

The top UAE lender said this initiative helps to create trust and attract local and international investors to invest in the real estate sector in Dubai, and in particular in the DIFC.

The key objective is to ensure the owners’ associations’ accounts are independently managed, said  a statement from the UAE bank.

Service charge contributions of owners are collected in this account and spending is monitored against an approved budget., it stated

The DIFC Registrar of Real Property will play a supervisory role, while operational matters will be managed by the owners’ association, with the assistance of a licensed owners’ association manager and the bank, following guidelines provided by the DIFC Registrar of Real Property.

The bank will also provide the DIFC Registrar of Real Property and the Body Corporate with online access to the escrow accounts, to facilitate transparency in their operation, he added.-TradeArabia News Service