The official gazette “Umm Al-Qura”, in its issue issued last Friday, published Regulations of the escrow account for real estate contributions, issued by the decision of the Board of Directors of the Public Authority for Real Estate No. (Q/M/E/E/2/2024/T) dated 18/07/1445 AH.
According to the Umm Al-Qura newspaper, the fourth article clarifies the mechanism of managing the main real estate contributions escrow account and sub-accounts according to the following regulations:
Article Four:
The main escrow account and sub-accounts shall be managed in accordance with the following controls:
1- Disbursement from the main account shall be made according to the payment document submitted by the licensee to the account custodian, provided that it is certified by the engineering consultant and the legal accountant and includes the amounts and justifications for disbursement, and it is allowed to approve the disbursement documents through secure technical means.
2- Disbursement from the reserve account shall be made according to the payment document submitted by the licensee to the account custodian, provided that it is certified by the engineering consultant and the legal accountant, including the amounts and justifications for disbursement, accompanied by the approval of the shareholders' association.
3- Disbursement from the revenue account shall be made according to the payment document submitted by the licensee to the account secretary, provided that the document is based on the shareholders' register, certified by the legal accountant, including the required amounts, and attached to the completion certificate from the engineering consultant or evidence of liquidation of the real estate contribution.
4- Deposits to the main and sub-account from the capital market institution designated to offer the share certificates, financiers, purchasers or resulting from the liquidation of the real estate contribution shall be by any means of payment accepted by the custodian of the account except cash.
5- Disbursement from the escrow account is limited to checks or money orders only.
