The new agency will oversee the implementation of the escrow account law for freehold projects.
Ras Al Khaimah Investment Authority (RAKIA) on Monday revealed a real estate regulator was now in operation in the emirate to protect the interest of investors.
The establishment of the RAKIA Real Estate Regulatory Agency (RERA) by an Emiri decree would "create a new layer of protection for real estate investors in Ras Al Khaimah", officials said, adding that the agency would oversee the implementation of the escrow account law for freehold projects.
Several property developers have already registered their projects with RAKIA RERA, which is similar to the Real Estate Regulatory Authority operating in Dubai, and the new body will now monitor RAKIA-supervised developments with a collective value of US $1.6 billion (AED6 billion).
Developers may only register with RAKIA RERA when the project's concept design has been approved, which will allow them to open an escrow account and start selling properties.
RAKIA RERA will also oversee the construction by sending out a team of engineers to inspect projects.
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Yahia Kambris, general manager, RAKIA RERA, said: "The escrow account has been implemented to prevent mishandling of construction funds and ensure that investors' money is spent according to the master plan of the project.
"In this regard, RAKIA RERA has been established to strictly implement the emirate's escrow account law for projects under RAKIA's supervision. The establishment of the new real estate watchdog is an important step in our efforts to safeguard and protect the interest of investors and reinforce the reputation of Ras Al Khaimah as an attractive and practical investment destination in the region."
Among the developers that have registered with RAKIA RERA include Select Group, the developer of Pacific; Manazil Real Estate, which is developing Marbella Bay; Pure Real Estate, developer of Blue Mirage; Stallion Properties, which is developing Santorini; and e-myproperty, developer of Bab Al Badr.
Yes Properties, developer of The Quay, is also currently completing the registration process and will soon open an escrow account.
Several banks, including Badr Al Islami-Mashreq, Bank of Baroda, Commercial Bank of Dubai, Abu Dhabi Commercial Bank and Dubai Islamic Bank, have also signed an agreement with RERA to offer escrow accounts.
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