Market regulation

RERA tightens control over off-plan: why is the responsibility falling on brokers again?

In January 2026 the Dubai Land Department issued circular No. 01-2026, reminding real estate agencies of their responsibility for promoting unregistered development projects. Behind a formal requirement to comply with a long-standing law lies a far more interesting issue: protecting buyers in Dubai's primary market.

Under the circular, brokers must make sure that an advertised project is registered with DLD, has an approved escrow account and holds the necessary RERA permits. Violations can lead to fines, suspension and even removal from the brokers' register.

The requirement itself is not new. Law No. 8 of 2007 has long governed the use of escrow accounts. Moreover, in March 2025 RERA had already addressed developers directly, pointing to cases of projects being promoted before registration was complete and such accounts were opened.

Where does the problem come from?

One possible explanation for the tighter control may be the spread of schemes that raise buyers' money before a project is fully launched, including through various investment agreements.

Unlike a standard purchase of a registered off-plan unit, such contractual structures may not give the buyer the usual protection mechanisms. Their real consequences depend on the terms of the specific agreement: what exactly the investor is buying, where the money goes, what guarantees are given and what happens if the project is changed or cancelled.

At the same time, even an escrow account does not guarantee that construction will be completed on time. Handover dates are missed even by well-known developers with long track records. Changes to the design, the unit's specifications and the terms of delivery also remain significant risks for the buyer.

Why brokers?

The regulator's logic is clear: an agency is an important channel for promoting property and should check that the projects it offers are lawful.

But a reasonable question arises: how fair is it to place additional responsibility on an intermediary who does not control the financing, construction or the developer's performance of its obligations?

A broker can check a project's registration, its escrow account and its permits. But a broker cannot guarantee the developer's financial stability, that the design will not change, or that construction deadlines will be met.

So the effectiveness of regulation should be measured not only by how strict the requirements for agencies are, but also by the real accountability of those who raise buyers' money and manage it.

Investor protection begins before the sale

At Seven Spaces Real Estate we support measures aimed at making the market more transparent. But we are convinced that investor protection must be comprehensive, from the moment money is first raised to the actual handover of the finished property.

Checking documents is a necessary condition for a safe deal. But it should not create the illusion that there are no investment risks.

That is why a broker's professional job is not only to check permits, but also to provide an independent assessment of the project, its economics, how realistic its timelines are and the terms of the contract.

The author's opinion. Not investment advice.