DLD cracks down on unregistered projects
Escrow accounts are a critical element of Dubai's real estate regulations
Dubai's Land Department (DLD) has taken action against three developers for promoting and marketing unregistered off-plan real estate projects. Each company was fined 500,000 Dirhams ($136,100) for violating Law No. 8 of 2007 on Real Estate Development Escrow Accounts.
Escrow Accounts: Protecting investor funds
Escrow accounts are a critical element of Dubai's real estate regulations. These designated bank accounts hold funds collected from buyers of off-plan units, which are properties still under construction. The escrow system ensures these funds are used specifically for the development project, protecting investors from potential risks like project delays or abandonment.
DLD prioritizes a secure investment environment
The fines highlight the DLD's commitment to fostering a secure investment environment. Ali Abdullah Al Ali, Director of the Real Estate Control Department at RERA within DLD, emphasized this focus: "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."
Importance of following regulations
Al Ali further underscored the importance of adhering to established protocols, stating, "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."
Safeguarding Investments: Tips for Buyers
To safeguard their investments, Al Ali advised potential buyers to take the following steps:
Verify Licenses and Escrow Accounts: Utilize the Dubai Land Department's Dubai REST application to confirm that off-plan projects are licensed and have registered escrow accounts.
Escrow Account Payments: Ensure all payments are made directly into the project's designated escrow account.
By following these measures, investors can make informed decisions and protect their financial interests in Dubai's real estate market.