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Penalty for taking off-plan money
Misappropriating money paid for a development carries jail, a fine of at least AED 100,000, or both.
What the source says
"a jail sentence and a fine of at least one hundred thousand Dirhams (AED 100,000.00), or either penalty"
Law No. (8) of 2007, Article 16
| Status | Confirmed - The official source states this rule in the words quoted. |
|---|---|
| Instrument | Law No. (8) of 2007, Article 16 |
| Authority | Dubai Government |
| In force since | 2007 |
| Last checked | 26 September 2026 |
| Source | Dubai Government |
Read the full guide
This rule is explained in context, with the costs and steps around it, in Escrow account.
More rules on off-plan
- Unregistered off-plan sales are void - Confirmed
- Off-plan contracts: 90 days to register - Confirmed
- What a developer can keep if a buyer defaults - Confirmed
- One escrow account per off-plan project - Confirmed
- Escrow money is safe from developer creditors - Confirmed
- The 5% escrow retention - Confirmed
See all 60 rules in the register.
Cite this rule
Home Guide Dubai, "Penalty for taking off-plan money", Dubai property rules register, last checked 26 September 2026.
https://homeguidedubai.com/rules/escrow-misuse-penalty/
This link stays the same when the rule changes. If the rule changes, this page shows the new text and the date it changed.
Frequently Asked Questions
Is this still the rule today?
We last read the source on 26 September 2026. Rules in Dubai change by circular and by edits to service pages, often without notice. Check the source linked above, and ask Dubai Government in writing before a large payment.
Where does this rule come from?
Law No. (8) of 2007, Article 16, published by Dubai Government. The quote on this page is copied word for word from that source.
Sources
- Law No. (8) of 2007, Article 16 - Dubai Government - accessed 26 September 2026
Every rule above is quoted from the law, decree or official page on the date given. This is general information, not legal advice; rules change, so confirm the current position with the authority named before you act.