The Dubai Land Department (DLD) has penalised three developers in Dubai AED 500,000 ($136,100) each for advertising and marketing real estate projects without completing the necessary registration procedures for off-plan projects, as stipulated by Law No. 8 of 2007 on Real Estate Development Escrow Accounts.
An escrow account is a bank account allocated for a real estate project, where the funds collected from buyers of off-plan units are deposited until the project’s completion.
This account is intended to regulate the construction process of the sold units, ensuring the protection of investors’ rights in the city.
Ali Abdullah Al Ali, Director of the Real Estate Control Department at RERA at DLD, stated: “The Real Estate Control Department continuously monitors the Dubai market to ensure all real estate companies comply with the laws and regulations governing real estate activities.”
“We urge everyone to adhere to these laws and regulations to avoid any legal action.”
“By doing so, we can create a secure investment environment. Investors must verify that off-plan projects are licensed and registered with an escrow account by checking through the Dubai REST application of the Land Department, and should not make any payments outside the project’s escrow account.”
