Thursday, January 01, 2009

RAKIA RERA to monitor implementation of escrow account laws

RAKIA (Ras Al Khaimah Investment Authority), the government body responsible for the socio-economic growth of the emirate, has revealed that the recent establishment of RAKIA RERA (Real Estate Regulatory Agency), according to an Emiri Decree, has led to increased protection for real estate investors, as the Agency will monitor the implementation of the escrow account law for freehold projects under RAKIA.

Several of the property developers have registered their projects with RAKIA RERA, which now supervises real estate developments worth a total value of Dh.6bn or more. Developers can register with RAKIA RERA once the concept design of the project has been approved. This will enable them to open an escrow account, and begin selling properties. RAKIA RERA will monitor whether the construction is happening as it should be, and will appoint a team of engineers to inspect projects and ensure that the major points in the contract are followed.

The General Manager of RAKIA RERA, Eng. Yahia Kambris, said that the establishment of the new real estate supervisor signifies the interest by RAKIA RERA to safeguard and protect the interest of investors and reinforce the reputation of RAK as an attractive investment destination in the region.

The developers registered under the RAKIA RERA are the developer of Pacific, Manazil Real Estate, developers of Marbella Bay, Pure Real Estate, developer of Blue Mirage, Stallion Properties, and Santorini and e-myproperty, developer of Bab Al Badr, and Yes Properties, the developer of The Quay, all of which are now completing the registration process, will soon open an escrow account.

Several banks, including the Bank of Baroda, Commercial Bank of Dubai, Abu Dhabi, Badr Al Islami-Mashreq, have all signed agreements with RERA to offer Escrow Accounts.

Ever-since its establishment in 2005, RAKIA has been one of the pillars for the economic progress of the emirate, with several groundbreaking investment initiatives in the emirate and across the international markets.

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