Dubai Land Department has fined three developers AED 500, 000 each for marketing and advertising the various real estate projects before they had complied with certain registration formalities for off-plan projects under the law no. 8 of 2007 concerning regulations of real estate development escrow accounts.
The escrow account is a particular account meant for a particular real estate project where funds from prospective buyers of units that have not been constructed yet are kept before the project is completed. This account should seek to control the construction process of the units sold, preserving the investors’ rights in the city.
Ali Abdullah Al Ali, Director of the Real Estate Control Department at RERA at DLD, stated: This has made it the responsibility of the Real Estate Control Department to closely follow the current market in Dubai to keep track of all the companies in order to ensure that they adhere to the laws and regulations concerning real estate activities and thereby avoid any legal consequences because following the laws and regulations we can facilitate the creation of a secure form of investing in the real estate industry that has been established in the country through the Dubai REST application of the Land Department The investors must
Source: Arabian Business
