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    What is the "five percent retention" rule after project completion?

    Ali Faizan Syed1 min read0 viewsUpdated 1/2/2026
    Once a developer obtains a completion certificate, the Escrow Agent is required to retain five percent (5%) of the total value of the Escrow Account. These retained funds act as a security and are not released to the developer immediately. The law mandates that this amount be held for one (1) year following the date that units are registered in the names of the purchasers. This retention ensures there are available funds to address any immediate post-completion issues or warranty claims.

    Related Topics:

    5 Percent Retention
    Completion Security
    Escrow Release
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