Dubai Land Department Fines for non-compliance
Significantly, Dubai Land Department (DLD) has fined three developers in Dubai AED 500,000 each for not complying with real estate escrow account regulations.
The Real Estate Control Department of the Dubai Land Department (DLD), which functions under RERA, continuously monitors the property market in Dubai towards enabling a secure investment environment for real estate investors.
Efficient systems by Dubai Land Department
The Control Department has efficient systems that ensure that all real estate companies including developers comply with the laws and regulations governing real estate activities in the emirate. This makes Dubai one of the world’s top property investment destinations.
Escrow account
There is great demand for Dubai’s off-plan projects from investors as they offer several advantages. However, developers in Dubai can promote off-plan real estate projects only after completing the required registration procedures. Specifically, Law No. 8 of 2007 on Real Estate Development Escrow Accounts in Dubai define these procedures. The failure on the part of the developers to comply with the required rules resulted in the fines.
Investor rights
The escrow account is a bank account designated for a real estate project. This account is used to depost funds collected from buyers of off-plan units. This account aims to regulate the construction process of the units sold. Thus, escrow accounts protect the rights of investors. Investors should make payments only to the project’s escrow account.
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