Which law outlines the rules for establishing escrow accounts for real estate transactions?

Law No. 8/2007 specifically addresses the regulation of escrow accounts in real estate transactions within Dubai. This law was enacted to ensure that the funds collected from buyers are securely held in an escrow account until the completion of the property transaction, thus safeguarding the interests of both buyers and sellers.

Under this law, developers are required to open escrow accounts with banks not only to protect the buyers’ investments but also to ensure that the funds are utilized only for the project for which they were collected. This structure is integral to maintaining transparency and trust in the real estate market, reinforcing the regulatory framework established by the Dubai Real Estate Regulatory Agency (RERA).

Other laws mentioned, while relevant to different aspects of real estate regulation, do not specifically focus on the establishment and management of escrow accounts in the same comprehensive manner that Law No. 8/2007 does. Therefore, it is the correct answer in the context of this particular question regarding escrow account regulations in real estate transactions.