The Dubai Land Department (DLD) has fined three developers AED 500,000 each for promoting and marketing real estate projects without completing the required registration procedures for off-plan projects.
They failed to comply with Law No. 8 of 2007 on Escrow Accounts for Real Estate Development in Dubai.
The escrow account is a bank account intended for a real estate project, where the funds collected from buyers of off-plan housing are deposited. This account aims to regulate the construction process of the units sold, ensuring the protection of investors’ rights.
Ali Abdullah Al Ali, Director of the RERA Real Estate Control Department at DLD, said: “The department continuously monitors the Dubai market to ensure that all real estate companies comply with the laws and regulations governing real estate activities.
“We urge everyone to comply with these laws and regulations to avoid legal action. By doing so, we can create a safe investment environment,” he added.
Investors must verify that off-plan projects are licensed and registered in an escrow account by checking through the DLD’s Dubai REST app, and must not make any payments outside of the project escrow account.
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