Emirates NBD Signs Agreement to Open Accounts for Owners Associations in the DIFCPress Release 12 May 2013 08:28 am
DIFC signs first Agreement on strata development regulating use of owners’ service charges contributions and disbursement of service providers’ payments
DIFC Registrar of Real Property has signed an agreement with Emirates NBD allowing the bank to open accounts for owners’ associations (known as Bodies Corporate) in the DIFC jurisdiction. This agreement is aimed at promoting the proper utilization of owners’ contributions to the owners’ association in accordance with DIFC Strata Title Law.
During the signing ceremony, Mr. Jaber Al Suwaidi, DIFC Registrar of Real Property commented: “To safeguard an owners’ contribution, while promoting integrity and transparency in the use of these funds, we now require all Bodies Corporate established under the DIFC Strata Title Law, to have a suitable escrow arrangement in place with an approved account trustee. We are pleased to partner with Emirates NBD and provide the option for Bodies Corporate within the DIFC jurisdiction to use Emirates NBD for the required escrow account services.”
Mr. Mahdi Kazim General Manager - Large Corporates and Global Banking, Emirates NBD said: “Under this agreement, Emirates NBD is now able to open escrow accounts for owners’ associations in the DIFC, into which collection of service charges contributions from owners are deposited, and their disbursement is regulated as per DIFC guidelines”.
The agreement has been signed by Mr. Jaber Al Suwaidi, DIFC Registrar of Real Property, Mr. Samir Sahu, Deputy GM and Head of Transaction Banking Services, and Mr. Sharad Agarwal, Head of Trade Sales, Factoring & Escrow Services, Transaction Banking Services at Emirates NBD. Under agreed terms and conditions, the bank opens “escrow accounts” in the name of owners’ associations in DIFC and acts as a trustee of these accounts for owners’ deposits and withdrawals to pay suppliers and service providers.
Emirates NBD is the first bank appointed by owners’ associations within DIFC to provide escrow account services through a process approved by the DIFC Registrar of Real Property. Emirates NBD is pleased to be of service to these owners’ associations and the owners they represent. Emirates NBD supports this initiative, which helps to create trust and attract local and international investors to invest in the real estate sector in Dubai, and in particular in the DIFC.
The key objective of the agreement is to ensure the owners’ associations’ accounts are independently managed. Service charge contributions of owners are collected in this account and spending is monitored against an approved budget. The DIFC Registrar of Real Property will play a supervisory role, while operational matters will be managed by the owners’ association, with the assistance of a licensed owners’ association manager and the bank, following guidelines provided by the DIFC Registrar of Real Property. The bank will also provide the DIFC Registrar of Real Property and the Body Corporate with online access to the escrow accounts, to facilitate transparency in their operation.
Emirates NBD has a dedicated team to facilitate services relating to these accounts in compliance with the directives of the DIFC Registrar of Real Property.