How escrow management software can stream line property management business in UAE?

Posted by ricky26 on June 16th, 2014

Escrow Management primarily focuses on the sound relationship between a Seller of a property and the buyer. To facilitate this relationship, a Bank is introduced as a solicitor between the two to manage cash flows and to ensure the interest of the buyer. The objective being to safe guard the interest of both parties during the lifecycle of the project at hand and even after the delivery of the same up to some time period as agreed between the buyer and seller.

Real estate escrow account details.

The escrow account is the bank’s account of the project in which amounts collected from buyers of off-plan properties are deposited or amount by project’s financers.

The escrow account aim is to regulate the functioning of the construction process of units sold off-plan, thus safeguarding the rights of investors.

The law applies to all developers in Dubai without any exception who sell properties off-plan in Dubai, and in return they receive payments from the buyers or financers. The escrow account aim is to regulate the functioning of the construction process of units sold off-plan, thus safeguarding the rights of investors.

Pre requisites for escrow account management

• The following are the pre-requisites for creation of Escrow Account with the Bank:

1. The Land Registration (in the name of the Escrow Account holder)

2. The detailed Project Progress Plan(PPP)

3. RERA Primary Approval

4. Article of Association of the Entities

5. Deposit to be made by the Master Developer with the bank to ensure the capability of the developer to complete the project. The percentage (as per RERA directive , usually in the range of 5-20%, it is the responsibility of the bank to ensure that this amount is available in the escrow account)of the total cost of completion of the project should be deposited.

An independent consultant has to be appointed by the master developer .

Since Property Financing Management software and escrow management involves large number of Stakeholders there is need for a solution that supports definitions to incorporate and manage different levels of stakeholders like Master Stakeholders, developers, builders, contractors, buildings and end unit byers etc.

AscentProperty management software UAE has been built with business users in mind designed by seasoned banking professionals in Middle east who understand different usage & scenarios and requirements at the ground level and maintains compliance with Real Estate Regulatory Authority mandates.

Ascent Promart is end-to-end Project and Property lifecycle management is complete customizable solution and incorporates entire life cycle support for property based finances management with automatic transitioning to corresponding phases.

This solution comes with end-to-end property management features with support for all types of cash flows like leasing, rentals, free hold etc., and incorporates multiple stakeholders like Management, maintenance personnel, contractors.

If you need more information on escrow management for BANKS, PROPERTY FINCIANCING AND REAL ESTATE you can log onto www.ascentmiddleeast.com