Monday, 6 Feb 2023
Ministry plans to make it mandatory for real estate developers to hold escrow accounts

Ministry plans to make it mandatory for actual estate developers to hold escrow accounts

Speaking to Muscat Daily, Eng Siham Ahmed al Harthi, director basic of Real Estate Development in the Ministry of Housing stated the move will make certain certainty for investors.

“The escrow account will be opened by the developer and all the money collected from buyers and investors besides the developer’s investment in the project will be kept in this special bank account. This is to ensure that the fund is used only for expenses directly related to the project.”

She stated that the withdrawal of fund from time to time is permitted upon reaching building target and topic to situations authorized by the ministry.

“Most current projects do not have the provision of an escrow account. With this new provision investors or buyers will be able to track the progress of a project. It will also ensure that their money is safe. There are times when buyers are hesitant to invest if there is any uncertainty related to the project.”

The new initiative will assist develop trust in between purchasers and developers and make the complete method much more transparent, she stated. “It will protect the money of those who invest during the launch stage of a real estateproject.”

Information Source: Muscat Daily

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