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  • Dubai Land Department Imposes Dh1.5m Fine on Three Developers
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Dubai Land Department Imposes Dh1.5m Fine on Three Developers

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  • Dubai Land Department Imposes Dh1.5m Fine on Three Developers

The Dubai Land Department (DLD) has penalized three real estate developers in Dubai, levying a fine of Dh500,000 each. These fines were imposed due to the promotion and marketing of real estate projects without completing the mandatory registration procedures for off-plan projects.

An escrow account is a bank account designated specifically for a real estate project. Funds collected from buyers of off-plan units are deposited into this account to regulate the construction process and safeguard investor rights.

Ali Abdullah Al Ali, Director of the Real Estate Control Department at RERA, part of DLD, stated, “The Real Estate Control Department continuously monitors the Dubai market to ensure that all real estate companies comply with the laws and regulations governing real estate activities.”

He further emphasized, “We urge everyone to adhere to these laws and regulations to avoid any legal repercussions. Compliance is essential to creating a secure investment environment. Investors must verify that off-plan projects are licensed and registered with an escrow account through the Dubai REST application of the Dubai Land Department. Additionally, they should ensure that no payments are made outside the project’s escrow account.”