Three real estate developers in Dubai have been fined Dh500,000 each for promoting and marketing off-plan projects without completing the mandatory registration procedures. The Dubai Land Department (DLD) stated that the developers had violated a law on real estate development escrow accounts.
An escrow account is 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. The DLD director, Ali Abdullah Al Ali, urged investors to verify that off-plan projects are licensed and registered with an escrow account, which can be checked through the DLD's Dubai REST application.
Investors were also advised not to make any payments outside the project's escrow account. This measure is in place to safeguard the rights of investors and ensure the proper execution of the construction process. The fines imposed on the developers serve as a warning to others and highlight the importance of complying with the real estate laws and regulations in Dubai.
