The developer’s act of September 16, 2011, imposes an obligation on the developer to run a housing trust account for each investment.
A Residential Escrow Account is a special type of bank account where you make payments for the purchased investment in accordance with the schedule attached to the contract.
The bank managing the trust controls each end stage of the project. A bank-appointed inspector(as per the Construction Log filled in by the Site Manager)confirms the construction works are finished.
Once the inspector confirms each construction stage is finished as specified in the schedule, the bank releases a part of the funds from the Trust Account to the Current Developer Account. At this point, the developer issues an invoice.
It is important that the invoices issued do not relate to any specific instalment and correspond to the value of funds released in the Current Account.The invoice amount is in accordance with the released instalment and not the amount you paid into the Trust Account.
Only then will the total invoiced amount be equal to the sum of your payments for the purchase of real estate.