Who is responsible for creating a project's trust account?

The responsibility for creating a project's trust account lies with the developer. In the context of real estate transactions in Dubai, the developer is required to establish a trust account to secure the funds received from prospective buyers until the property is handed over. This practice is in line with regulations set forth by the Dubai Real Estate Regulatory Agency (RERA) to protect buyers' investments and ensure that funds are used appropriately for the development of the project.

The establishment of a trust account is crucial as it provides a layer of financial security for buyers, ensuring that their funds are safeguarded and allocated towards the project. This mechanism is designed to promote transparency and accountability within the real estate sector, which is essential for maintaining investor confidence.

While brokers and investors play important roles in the real estate market, they do not possess the authority or responsibility to create a project’s trust account. The government, on the other hand, regulates the operation of such trusts but does not create them. Therefore, the developer's role in setting up the trust account is vital in maintaining regulatory compliance and protecting the interests of all parties involved in the transaction.