KM Properties and National Bank of Dubai signs Escrow Account

KM Properties has established its own Escrow account to protect all its existing and future property owners and investors.

KM Properties, which became the first private developer to embrace Law No. 8 when it registered with the Land Department in August as a real estate developer, now offers Escrow facilities on its multiple properties.

"An Escrow Account is an important and effective mechanism that is used to reduce risks over Real Estate investments in Dubai. The working idea of this mechanism is dependent heavily on the supervision role of RERA (Real Estate Regulatory Authority) - division of the Dubai Land Department - over all amounts deposited by clients, and by verifying that the developer is spending these deposits in the best way in favor of its developments" said Khulood Abdulla Al Rostamani, co-founder and group director of KM Holding, parent company of KM Properties.

And regarding the efforts made by KM Properties in preparation for this major step, Khulood added: "KM Properties started one year ago to prepare all its departments & divisions to comply with the new law - the Law No. 8- as soon as the government of Dubai issued it. This task was carried out to make it possible for KM Properties to lead the way in complying with the new law".

"We can only express our gratitude to His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, for initiating this essential step which will stabilize the real-estate market by means of the newly established laws that have recently been introduced.

"Embarking on this step is very critical for the real-estate market as it comes as one of Shaikh Mohammad's many initiatives to upgrade the scale and magnitude of the local market so that it exceeds all expectations. Dubai's real-estate sector has already been a market leader both regionally and beyond. But what this recent new law has done is close the gap further in the race of acquiring a status of being a front runner when it comes to international standards and quality. It is a leap that gives Dubai a global stature," Khulood Al Rostamani added.

KM Properties, one of the largest property developers in the Emirate, has set up an Escrow account in conjunction with National Bank of Dubai (NBD). KM Properties already has strong relationships with the bank having recently entered into a strategic agreement with NBD for the granting of mortgages on KM Properties' commercial and residential developments.

"We are glad that KM Properties has chosen to partner with us to safeguard its investors' interests. In addition, customers of KM Properties can benefit from the finance assistance value offer made possible by our strategic partnership. Through this service, NBD is supporting government initiatives to raise the standard of real estate industry and ensure the continued prosperity of Dubai's property market," comments Rajesh Thapar, Group Head of Corporate and Institutional Banking, National Bank of Dubai.

NBD offers mortgages of up to 85% on residential units and 75% on commercial spaces at TAMANI Exclusive at El Matador tower located in Jumeirah Village Triangle, as mortgage partner to KM Properties. This appointment will complement NBD's leading position in the mortgage finance market, adding value both to KM Proeprties and its customers.

"NBD was the natural choice for our Escrow account. Not only is this is a well respected financial institution but one with which we have a strong relationship," Al Rostamani remarked.

Visitors at the KM Properties stand at the Cityscape Dubai exhibition 8E20 on Hall No. 2 at the Dubai International Exhibition Centre will be treated to an educational seminar conducted on the spot by the NBD and KMP Sales teams where valuable insights will be shared on property investing in relation to the significant features of having an escrowe account.

KMP Investors and customers will further gain an understanding on the various ways they can benefit in terms of added value security and trust the developers will provide them in keeping their investments safe and sound through the escrowe account management along with the developer's bank and mortgage finance partners.

KM Properties will be exhibiting at Cityscape Dubai Hall 8, stand E20.

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