Law of Selling and Leasing Off Plan Real Estate Projects

The certified public accountant must retain in the escrow account an amount equal to five percent of the total value of the construction cost; otherwise, the developer must provide the certified public accountant with a bank guarantee for the same percentage once the developer receives the certificate of completion. The amount retained in the escrow account may only be paid to the developer upon the lapse of a period of one year from the date of completion of the licensed real estate project, or upon the provision of an insurance policy against hidden defects in the buildings and constructions, as specified in the Regulations.