The Dubai Land Department (DLDReal )'s Estate Regulatory Agency (RERA) adopted and enabled the bank escrow account to process jointly owned properties (JOPs) using the electronic Mollak system in 2019. It marked a significant step forward in assisting JOP owners in managing and running their ventures. It also contributed to the preservation of their rights by offering a direct deposit service into their bank accounts, without any project creator in between.

DLD continues to use modern and advanced electronic means to enhance its governance, regulatory, and supervisory functions. Many local banks expressed interest in the same. RERA has signed agreements with nine local banks, including Abu Dhabi Islamic Bank, United Bank Limited, Commercial Bank of Dubai, Abu Dhabi Commercial Bank, Arab Bank for Investment & Foreign Trade, Dubai Islamic Bank, Emirates NBD, First Abu Dhabi Bank, and Mashreq Bank, to handle escrow accounts for JOP management companies.

The nine banks will open escrow accounts for JOP management companies under RERA's. Landowners, or licensed real estate management firms operating on their behalf, will bear liability under government regulations, including Law No. (6) Of 2019.

With the changing rates for the account's services, the account trustee is bound by the agreement not to alter, cancel, or amend the terms and conditions for the account formation without RERA's prior written approval. They also agreed not to pay, pass, or execute any money deposits in the accounts until they have RERA's written approval or signed authorization. The account trustee must obtain a copy of RERA's written or electronic approval, which includes the approved budget as well as operation and maintenance costs, and a description of the suppliers' contracts. They should not make any payment or cash withdrawal if the amount exceeds the permitted sum unless RERA approves it. The account trustee must inform RERA in writing, of any information that the account trustee has received any requests relating to the escrow account from a party other than the RERA-registered management firm.

The account trustee must also keep an up-to-date record of the names and signatures. They must make sure that the authority granted to those authorized to sign on behalf of the management company was based on properly licensed official documents and registered with RERA. They shouldn't let someone function alone that is unapproved with RERA. To prevent conflict of interest, the account trustee should not be the owner of any real estate project where the management firm manages the facilities and rather apply to open an account with the account trustee. The account trustee must also keep an accurate and up-to-date record and allow RERA to review those records whenever necessary.

The agreement confirms the account trustee's obligation to follow Dubai's JOP ownership legislation and regulations, provided by DLD and RERA. According to the EPA, the account trustee should either provide RERA with a periodic financial statement of account movement or a monthly financial audit report upon request, issued by the manager, requesting a copy of all supply contracts, maintenance contracts, services, and auditing them before disbursing payments.

With the implementation of the electronic Mollak scheme, Dubai's real estate market has gained more transparency and confidence. Our banking partners play a critical role in the smooth operation of this digital process. The total services charges audited by the Mollaksystem would surpass AED 4 billion, increasing customer loyalty and happiness by saving time and money.

RERA issues the requisite circulars to govern both parties' positions to avoid conflicts of interest. This will reduce JOP management violations, improving Dubai's real estate sector's image, and ensuring the city's status as a favored investment destination.