Dubai, UAE, 9 May 2020: The Real Estate Regulatory Agency (RERA) imposed a AED 50,000 fine on a real estate company that was found to have violated the laws related to the escrow account and permits of real estate advertisements, specifically Law No. (8) for 2007.
RERA calls on all real estate companies and brokers to abide by laws and regulations that regulate real estate advertising and marketing mechanisms. To ensure the highest levels of transparency and safeguard the rights of all parties, including investors and developers, RERA regularly launches awareness campaigns across various channels and is in constant communication with all parties to inform them about the systems and share with them the latest circulars aimed at establishing reassurance and encouraging correct practices.
Through the processes of control and auditing of real estate advertisements undertaken by RERA’s cadres, a company was found to have committed a group of violations related to the promotion and advertising of real estate projects not registered under its name. The violations also included issuing investment contracts to customers of those projects, receiving amounts outside the escrow account, and launching a promotional campaign without obtaining the necessary permits from the concerned authorities.
Upon reviewing the group of violations that the company committed against the laws related to the escrow account and permits of real estate advertisements, specifically Law No. (8) for 2007, RERA decided to impose a AED 50,000 fine, with a warning to double the value of the fine if the company is found to be non-compliant, suspend its license, close its office, and transfer its violations to public prosecution.
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