How off plan purchases work in Dubai

Buying off plan means agreeing to buy a home that exists, for now, as drawings, a site and a programme of construction. Dubai has regulated this kind of sale since 2007, and the rules are worth understanding before any money moves. This guide follows the sequence most buyers experience and points to the law and the Dubai Land Department (DLD) services behind each step. It is general information, not legal advice, and the fees and procedures it describes should be confirmed on the official pages on the day you act.

The legal framework in brief

Two Dubai laws carry most of the weight.

Law No. 8 of 2007 concerns escrow accounts for real estate development. A developer that wishes to sell units off plan must apply to DLD and open an escrow account for the project with an approved escrow agent. Article 9 states that the account is dedicated exclusively to the construction of that project, and that no attachment may be imposed on the payments deposited in it.

Law No. 13 of 2008 created the interim real estate register. Article 3 requires every off plan sale to be entered in that register and treats an unregistered sale as void. Article 4 prevents a developer from selling off plan before it has taken possession of the land and obtained the required approvals, and Article 10 treats contracts signed for a project that has not been approved as null and void.

Together, these rules mean that a legitimate off plan sale leaves a public trail: a registered developer, a registered project, an escrow account and a registered contract.

Stage one: reservation

Most purchases begin with a reservation. The developer or its appointed broker holds a specific unit for a short period against a reservation payment, and the buyer receives a reservation form setting out the unit, the price and the payment plan.

Treat the reservation form as a binding document. Read the terms on refunds and deadlines, and check who the payment is made to. Under Law No. 8 of 2007, payments received from buyers of off plan units belong in the project escrow account, and DLD's own guidance repeats that all amounts received from buyers must be deposited there.

Stage two: the sale and purchase agreement

The sale and purchase agreement, usually called the SPA, is the contract that will be registered. It should describe the unit precisely, including its number, floor, area and any parking. It will set out the payment schedule, the anticipated completion date, the treatment of delays, the handover process and the service charge arrangements.

Points we ask clients to read slowly:

• How the anticipated completion date is expressed, and what the agreement says about extensions.
• How the area of the unit is measured, and what happens if the completed area differs from the plan.
• Which payments fall due on construction milestones and which on fixed dates.
• The clause allocating the DLD registration fee and any administrative charges.
• The obligations on the buyer if a payment is missed.

On that last point, Article 11 of Law No. 13 of 2008, as amended by Law No. 9 of 2009, sets a procedure the developer must follow. The developer notifies DLD, DLD gives the purchaser thirty days' notice to perform, and only then may the developer use the remedies the law allows. Those remedies depend on how far the project has progressed. The thresholds have been amended more than once, most recently by Law No. 19 of 2020 according to commentary by Al Tamimi and Company, so confirm the current text with a lawyer rather than relying on a summary.

Stage three: registration through Oqood

Once the SPA is signed, the developer registers the sale in the interim register through Oqood, DLD's portal for real estate developers. DLD's service page for registering an initial sale lists the documents required for an individual purchaser as the signed sale and purchase contract, a valid UAE identity card, and a passport for non residents. It states that the contract must be registered in the provisional register within 90 days of signing, and that the output is a provisional registration certificate sent to the purchaser by email.

Keep that certificate. It is your evidence that the sale is recorded, and it is what allows a registered unit to be sold or mortgaged under Article 6 of Law No. 13 of 2008 before completion.

The registration fee

As published by DLD on its initial sale registration page, accessed on 1 November 2026, the fees are 2% of the sale value for the seller and 2% for the purchaser, plus a knowledge fee of AED 10, an innovation fee of AED 10 and a developer registration fee of AED 1,000 charged through Oqood. DLD's Know Your Rights guide describes the sale registration fee as 4% of the purchase price, paid in equal parts by seller and purchaser unless agreed otherwise. Off plan agreements frequently allocate the whole amount to the buyer, so the SPA governs. Ask for the full fee schedule in writing before you sign.

How escrow protects you, and where it stops

Escrow means your payments are held for the project rather than for the developer's general use. Under Article 14 of Law No. 8 of 2007, the escrow agent retains 5% of the account value after completion, released one year after the units are registered in the buyers' names. Article 15 directs the escrow agent, in consultation with DLD, to protect depositors where a project stalls, either by securing completion or by refunds.

Escrow does not guarantee a completion date, a finish standard or a resale price. It protects how money is used, not how the market moves.

What to check before committing

DLD's Know Your Rights guide poses a short list of questions for off plan buyers. We would add one practical tool: the Project Status service, known as Mashrooi, in the Dubai REST application. DLD states that it shows the project number, registration, start and completion dates, the developer's details and the escrow bank. Before paying, confirm that:

1. The developer and the project are registered, and the project in Dubai REST matches the one in your documents.
2. The escrow bank and account in your payment instructions match the project record.
3. The broker you are dealing with is licensed by the Real Estate Regulatory Agency.
4. The SPA describes the unit, the area, the completion terms and the fee allocation clearly.
5. You understand the default procedure and can meet the payment schedule comfortably.

The same DLD guide records that developers are liable for structural defects for ten years and for minor defects for one year, which is worth noting for the handover inspection.

Our view

A well run off plan purchase in Dubai is a documented, traceable process. The safeguards work best when buyers use them: registered parties, escrow payments only, a registered contract and a careful reading of the SPA. If any of those elements is missing, pause until it is resolved.