Dubai, United Arab Emirates, 02 June 2024: Dubai Land Department (DLD) has fined three developers in Dubai AED 500,000 each for promoting and marketing real estate projects without completing the required registration procedures for off-plan projects, in accordance with Law No. 8 of 2007 on Real Estate Development Escrow Accounts in Dubai.
The escrow account is a bank account designated for a real estate project, where the funds collected from buyers of off-plan units are deposited. This account aims to regulate the construction process of the units sold, ensuring the protection of investor rights.
Ali Abdullah Al Ali, Director of the Real Estate Control Department at RERA at DLD said, “The Real Estate Control Department continuously monitors the market in Dubai to ensure that all real estate companies comply with the laws and regulations governing real estate activities.” He added, “We urge all 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 Dubai Land Department, and should not make any payments outside the project’s escrow account.”
Follow Emirates 24|7 on Google News.
