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    What is the financial penalty for a developer failing to open an escrow account?

    Ali Faizan Syed1 min read0 viewsUpdated 1/2/2026
    Under Law No. (8) of 2007, a developer who fails to open an Escrow Account for a real property development project is subject to severe penalties. The law mandates an imprisonment sentence and a fine of at least one hundred thousand Dirhams (AED 100,000.00), or either of these penalties. Furthermore, according to RERA's schedule of fines, the penalty for failure to open an escrow account can reach AED 500,000. This strict enforcement protects purchasers by ensuring their payments are secured for project construction.

    Related Topics:

    Escrow Account Fine
    Developer Penalty Dubai
    Off-plan Security
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