Legal Regulation of Escrow Account Comparative Study

Real estate development projects are considered one of the most important investment systems that have spread and imposed their presence on reality at the present time. Therefore, most legislations, including the UAE law and the Qatari law, have regulated the activity of the real estate developer who undertakes the implementation of these projects and have defined his rights and obligations, and even the mechanism for paying the price of the real estate units of the implemented projects that are sold off-plan, as this payment is made by depositing in a special account for the real estate development project called the escrow account, which works to ensure that the project does not fail or its implementation is delayed by the real estate developer. Although the Iraqi legislator defined the concept of the real estate developer in the second amendment to Investment Law No. (50) of 2015, it was satisfied with defining it and referring to it briefly, and did not clarify his rights and obligations. Therefore, it did not regulate the escrow account as one of the most important obligations imposed on the real estate developer, which represents a legislative deficiency that weakens the confidence of those dealing with this developer. The study found that the Iraqi legislator's regulation of the real estate developer is not fully consistent with its important role in establishing investment projects, and it does not guarantee the rights of those dealing with this developer,