Fund Protection

Fund protection mechanisms safeguard investor capital in property investments through escrow accounts, insurance, legal structures, and contractual safeguards.

Protection MechanismFunction
Escrow accountsOff-plan payments held until milestones
Bank guaranteesDeveloper performance bonds
Title insuranceProtects against ownership defects
SPV structureIsolates asset liability
Completion guaranteesEnsures project delivery
Regulatory oversightRERA monitoring and enforcement
Risk CoverageProtection Level
Developer default (off-plan)Escrow law provides refund mechanism
Title defectsDLD registration system prevents fraud
Construction defectsMinimum 1-year developer warranty
Market volatilityNo protection, investor bears risk
Tenant defaultLandlord insurance available
Force majeureContract-specific provisions

Related Terms

Escrow Account (DLD-Mandated)Trust Account (Escrow for Off-Plan)Escrow Law (Dubai) Asset ProtectionRisk ManagementInsurance (Property)

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