Dubai Tightens Rules for Selling Overseas Properties to Safeguard Investors

Dubai Tightens Rules for Selling Overseas Properties to Safeguard Investors

Post by : Anish

June 17, 2025 4:06 p.m. 3704

In a decisive move to protect investors and maintain market integrity, the Dubai Land Department (DLD) and RERA have implemented new regulations governing the marketing and sale of overseas properties within the emirate.

Mandatory Marketing Permits
Any promotion of foreign property—across print, online, or social media—now requires a formal permit through DLD’s Trakheesi system. Developers or brokers must submit detailed documentation, including the foreign title deed, notarised ownership proof, a marketing agreement between owner and agent, and certification from the UAE embassy and Foreign Ministry, translated into Arabic. 

According to Ali Abdullah Al Ali, Director of Licensing at RERA, the directive aims to ensure residents follow the correct legal procedures before investing abroad. The regulations emphasise accuracy, compliance, and consumer protection, requiring brokers to verify legitimacy before promoting deals. 

Escrow Account Requirements
To prevent misuse of funds, an escrow scheme is being introduced for payments related to foreign off-plan sales. This ensures buyer funds are securely held and not prematurely transferred, mitigating the risk of fraud or cancelled projects.

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Fines and Enforcement
Non-compliance may result in fines of up to AED 50,000. Reports suggest over 130 complaints already logged this year against brokers for aggressive outreach or misleading promotions, prompting DLD to intensify scrutiny. The department is also launching a broker classification system with star ratings and self-inspection mandates to elevate service quality. 

Transparency & Buyer Protection
These fresh rules echo past reforms—such as banning premature ‘Just Sold’ ads—supporting a policy ethos centred on transparency and market stability. Brokers are now clearly restricted from advertising foreign investments without proper credentials and documentation.

Global Relevance
For international buyers, this means greater assurance when exploring foreign property options via Dubai-based brokers. Dubai's reputation as a trustworthy hub is being reinforced through these regulated practices, aligning it with global real estate standards.

Real estate experts say the measures close a loophole that once allowed unscrupulous agents to sell non-existent or misrepresented overseas assets. The new escrow requirement and documentation vetting provide meaningful protection against fraud.

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