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    What is the five percent retention rule for escrow agents?

    Ali Faizan Syed1 min read0 viewsUpdated 1/2/2026
    Article (14) of Law No. (8) of 2007 mandates that an Escrow Agent must retain five percent (5%) of the total account value after the developer receives a completion certificate. This retained amount serves as security and is only released to the developer after one (1) year has passed from the date the units are registered in the purchasers' names. This rule provides a financial buffer to address any defects or issues that arise immediately after the building is completed and occupied.

    Related Topics:

    Five Percent Retention
    Project Completion
    Escrow Release
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