The Dubai Land Department says it will take action against real estate companies which fail to register for the mandatory escrow account by the December deadline.
Mohammed Sultan Thani, director of development and marketing administration at DLD told Emirates Today “we do have enough regulatory power and even the government consent to take action against companies failing to meet the escrow account deadline”.
Under article 14 of the new law, companies which continue to operate without a licence, knowingly sell units in bogus property developments or embezzle, or squander construction payments will face incarceration and/or fines of Dh 200,000 ($54.5k).
Thani refused to comment on the number of companies already registered under the recent law, Emirates Today reported. “We are not able to release the actual number of companies that have registered with us for escrow account, as the process is still continuing” he told the newspaper.
According to Thani few complaints had been received from investors regarding project delays or misappropriation of funds. A second official told ET buyers or investors should read agreements properly before signing, as “we can’t protect them if they have entered into any agreement that protects developers for any delays”. Source
Mohammed Sultan Thani, director of development and marketing administration at DLD told Emirates Today “we do have enough regulatory power and even the government consent to take action against companies failing to meet the escrow account deadline”.
Under article 14 of the new law, companies which continue to operate without a licence, knowingly sell units in bogus property developments or embezzle, or squander construction payments will face incarceration and/or fines of Dh 200,000 ($54.5k).
Thani refused to comment on the number of companies already registered under the recent law, Emirates Today reported. “We are not able to release the actual number of companies that have registered with us for escrow account, as the process is still continuing” he told the newspaper.
According to Thani few complaints had been received from investors regarding project delays or misappropriation of funds. A second official told ET buyers or investors should read agreements properly before signing, as “we can’t protect them if they have entered into any agreement that protects developers for any delays”. Source
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