Buying off-plan means paying for a home before it is built, usually in instalments linked to dates or construction milestones. Dubai has a specific legal framework to protect those payments, and understanding it is one of the most useful checks a buyer can make.
Escrow accounts
Under Dubai Law No. 8 of 2007 concerning escrow accounts for real estate development, a developer that sells units off-plan must hold buyers' payments in an escrow account opened for the project with an approved bank. Money in the account is released for the project's construction under the supervision of the Dubai Land Department and its Real Estate Regulatory Agency (RERA), rather than being used freely by the developer.
What to check: pay only into the escrow account named in your sale and purchase agreement for that project, never into a personal or unrelated account, and keep every receipt.
Oqood: the interim register
Dubai Law No. 13 of 2008 created the interim real estate register for off-plan sales. Your purchase is registered by the developer with the Dubai Land Department (the system is known as Oqood), which records your interest in the unit until the building is completed and the final title deed is issued.
What to check: ask for the Oqood registration certificate after you sign, and confirm that the project is registered with the Dubai Land Department before you pay.
Payment plans and handover dates
Payment plans differ from project to project: some ask for most of the price during construction, others leave a larger share for handover or after it. Handover dates are the developer's anticipated dates and can move. Read the agreement for the completion clauses, and compare the payment schedule with your own budget and timeline.
Before you reserve
- Confirm the developer and the project registration with the Dubai Land Department.
- Match the escrow account in the agreement with the project.
- Understand every instalment, fee and the expected handover period.
- Keep copies of the agreement, receipts and the Oqood certificate.
Other emirates have their own registration rules, so the exact steps differ outside Dubai. ORA Properties can walk you through the documents for any project you are considering.