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Dubai Land Department fines 10 real estate companies, warns 30 for non-compliance with advertising laws

Dubai Land Department fines 10 real estate companies, warns 30 for non-compliance with advertising laws

Each fine starts at Dhs50,000, and may escalate leading to cancellation of the licence of the violating real estate company

The Real Estate Regulatory Agency (RERA), at Dubai Land Department (DLD), has fined 10 real estate companies and warned 30 others for not conforming to the advertising requirements.

These penalties came in the wake of inspection campaigns conducted by RERA to audit advertising permits, and ensure adherence to the circulars and laws enforced in the emirate.

Each fine is valued at a progressive Dhs50,000, and may end at cancellation of the licence of the violating real estate company, DLD confirmed.

The violations committed were of three types: violations by companies that did not obtain advertising permits, manipulation of the use of advertising permit numbers, and the use of expired permits.

RERA regularly launches campaigns to offer guidance for dealing with various forms of advertisements, especially fake and unlicenced ads that are posted on electronic platforms and social media channels.

The agency requires real estate companies to obtain permits before launching any real estate marketing campaign and to include the permit number in all real estate ads. Companies must also display their advertisements according to the conditions approved in the permit as well as obtain final approvals from other concerned authorities.

As for the websites concerned with real estate ads, they are to be associated with is a link to ensure that the displayed ads adhere to the permit conditions.

RERA previously launched a real estate ad permits service on the Trakheesi system on DLD’s website, by virtue of which all Dubai-based real estate companies and establishments and those wishing to publish any real estate advertisement in the emirate are required to apply for a permit through the aforementioned system.

The advertiser will bear the consequences of the legal procedures if the permit number is not placed in the advertisement.

RERA also called on customers and investors to verify all documents and request data and information from brokers about the offered property.  Customers can verify the licensed brokers, as well as the validity of real estate property data, through the Dubai REST smart application – Dubai Brokers page.

“RERA is keen to ensure that all companies adhere to real estate permits and that customers are being provided with the best services,” noted Ali Abdulla Al Ali, director of the real estate licensing department at DLD.

“The main objective of this campaign is not limited to violating companies; it also seeks to preserve the rights of all parties, provide quality services, and limit false advertisements. In doing so, we encourage brokers to adhere to the rules and regulations, which will lead to a reduction in complaints we receive. We are committed to providing information easily and conveniently to customers, ensuring their happiness and helping them make the right decisions.”

RERA also urges its customers to familiarise themselves with all the procedures, read contracts with extreme accuracy, and seek the assistance of legal experts to verify the terms of the contracts before signing them.

If the project is off-plan, it must be ensured that it is licenced and that no amounts are paid outside the escrow account.

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