The Ministry of Housing and Urban Planning has extended escrow requirements to projects that are resold before completion, ending a distinction that had left some buyers outside the protection framework.
What changes for buyers
Any project collecting instalments against unfinished units must hold the funds in a certified escrow account, released against verified construction milestones. Buyers are entitled to request a statement showing how much has been deposited and drawn down for their unit.
For resale purchases, the transferring buyer and seller must notify the escrow bank of the change in ownership so future instalments are credited correctly. Skipping that step is the most common cause of disputes at handover.
How to check a project
- Request the project licence number and confirm it on the MoHUP portal.
- Ask for the escrow account details and the bank issuing them.
- Match the payment schedule in your contract against the published milestones.
- Keep every receipt; the escrow bank statement is your proof at handover.