Dubai: Bank Guarantees Could Have to be Provided
According to sources in Dubai, bank guarantees could have to be provided by property management companies acting on behalf of homeowners associations. They could have to be provided for each of their projects. This could equate to 20% of the annual service charge budget for a building. It is envisaged as being similar to the escrow account developers have to maintain on all off plan projects. There has always been a provision for this type of guarantee but it has never been fully implemented before.