Buying off-plan means paying for a property that does not exist yet. Over the past two decades Dubai has reduced that risk with a substantial legal framework: buyer payments go into ring-fenced accounts, projects are registered with the authorities, and contracts are recorded in an official system. That is considerably more protection than many other markets offer.
The system does not, however, judge for you whether the developer is good, whether the completion date is realistic, or what you are committing to in the sale and purchase agreement. This article sets out what to check, and where, before you pay a booking deposit.
The legal framework in brief
Three pieces of legislation form the backbone of off-plan buying:
- Law No. 8 of 2007 on developer registration and project escrow accounts. A developer may only collect buyer payments for a registered project, into an escrow account approved by the authorities.
- Law No. 13 of 2008 on the interim real estate register. Off-plan sales must be recorded in the Dubai Land Department's (DLD) Oqood system; without that, the transaction is not valid. After handover, this is replaced by the final title deed.
- Article 11 of Law No. 13 of 2008 (as amended in 2017) governs what a developer can do if a buyer stops paying. More on that below.
Oversight lies with the DLD and its regulatory arm, RERA.
What escrow is, and how far it protects you
An escrow account is a ring-fenced bank account tied to a single project. Buyers pay into it, and the developer receives money only in proportion to certified construction progress. Your payments therefore fund your project, not the developer's general operations.
According to a 2026 professional overview, once completion is certified, 5% of the remaining escrow balance is retained for a further year and released only after units have been registered in buyers' names. That also provides cover for defects that appear after handover.
If the authorities cancel a project, the developer must refund everything buyers have paid. That is a strong safeguard, but in practice the bigger risks are not cancellation but delay and lower-than-expected quality.
What to check, and where
| What | Where | Warning sign |
|---|---|---|
| Project registration | DLD Dubai REST app, project status enquiry | Not listed, or "being registered soon" |
| Escrow account | Project status, and the SPA | Payment requested into another account |
| Construction progress | Dubai REST app | Developer's figure differs from the official one |
| Developer track record | Completed projects, visits to finished buildings | Repeated multi-year delays, many buyer complaints |
| Broker | RERA registration number on the broker's card | Unregistered, or name does not match |
| Price | DLD transactions for comparable projects | Well above nearby ready homes, with no clear reason |
A developer's track record tells you more than any render. Look at how many projects they have handed over, how late, and what those buildings look like today. A tower completed five years ago shows how the developer's work ages, and what the service charge has become.
Delay is a real risk. Cavendish Maxwell's Q1 2026 report found that of roughly 30,300 homes scheduled for completion that quarter, only about 12,900 were delivered. Not every project slips, but developer timelines should be treated with caution.
Key clauses in the sale and purchase agreement (SPA)
The SPA is drafted by the developer, and much of it is not negotiable. You still need to know exactly what you are agreeing to. These are the points we check in every contract:
- Description and area of the unit. Contracts usually allow some variance in floor area. Check the tolerance and whether a price adjustment applies.
- Payment schedule. Is it linked to construction milestones or fixed dates? What happens if the project is late but date-linked instalments fall due?
- Completion date and grace period. Many contracts give the developer a grace period measured in months. Is there compensation if even that is exceeded?
- Consequences of buyer default. Late payment charges, notices, and the Article 11 deductions.
- Assignment. After what percentage paid can you assign the contract, and what is the NOC fee?
- Changes. Can the developer change materials, layout or shared facilities, and to what extent?
- Estimated service charge. Figures promised for the first years often rise once the owners' association takes over.
- Handover and defects. How does inspection work, how long do you have to report defects, and who handles warranty repairs?
The SPA is in English and is often a long document. Before you sign, ask for a summary of the points above in your own language. Anything you do not understand should be clarified before signing, not when the first default notice arrives.
If you cannot pay: what the law allows
Under Article 11, the developer must first notify the DLD of the default. The DLD then gives the buyer 30 days to pay or reach a settlement. If that fails, the DLD issues a certificate of the project's completion level, and that determines the developer's options:
| Completion | Developer's options | Maximum retained |
|---|---|---|
| Over 80% | Keep the contract and pursue the balance, seek a public auction, or terminate | 40% of amounts paid (on termination) |
| 60–80% | Terminate unilaterally | 40% of amounts paid |
| Below 60% | Terminate unilaterally | 25% of amounts paid |
If construction has not started for reasons beyond the developer's control, at most 30% may be retained, with the rest refunded within 60 days.
If you have paid AED 450,000 at 40% completion and cannot continue, the developer may keep up to AED 112,500. That is why we say an off-plan instalment is an obligation, not an option.
Handover: snagging and the final title deed
The last stage of an off-plan purchase matters as much as the first. When the developer announces handover, the final instalment, the first service charge advance and utility connection fees usually fall due.
Independent snagging. Before accepting the keys, hire an independent inspector to go through the unit item by item: finishes, windows and doors, waterproofing, air conditioning, electrics, floor area. Give the defect list to the developer in writing, and either make repairs a condition of handover or claim them within the contractual warranty period.
Area check. If the final floor area differs from the contract beyond the permitted tolerance, the contractual price adjustment or other remedy may apply. Raise it at handover.
Final title deed. Once the full price is paid, the DLD issues the final title deed and the Oqood registration falls away. From then on the property can be freely sold or mortgaged, and this is the document you need for a Golden Visa application.
Warning signs that should stop you
- A payment request to anything other than the escrow account, such as an individual's account or a "partner company".
- Guaranteed returns or guaranteed buy-backs with no clear, written and verifiable structure behind them.
- Pressure: "you must decide today, the price goes up tomorrow".
- An expression-of-interest (EOI) deposit for an unregistered project that has no DLD project number or escrow account yet.
- Missing or inconsistent data between the Dubai REST app and the developer's materials.
If you would like us to run these checks for you and walk you through the contract, see our new developments page or our buyer representation service. The choice between off-plan and ready is covered in off-plan vs ready property in Dubai.
This article is general information based on the law as of June 2026. Before signing a specific contract, get personal legal advice.
Frequently asked questions
How do I know the project is really registered?
The project status enquiry in the DLD's Dubai REST app shows the project details, the developer, construction progress and escrow account information. If the project is not there, do not pay.
What happens if the developer delivers late?
That depends on the SPA: most contracts include a grace period, and compensation or a right to cancel only applies beyond it. That is why we always review the delay clause separately before signing.
Do I get my money back if the project is cancelled?
If the authorities cancel the project, the law requires the developer to refund all amounts paid. The refund comes from the money held in escrow.
Are the big, well-known developers safe?
Their risk is generally lower, but delays still happen and project quality can vary. A name is no substitute for checking the specific project and contract.
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Dr. Gősi Georgina is Monvero's legal advisor. She looks after contracts, legal due diligence and the legal side of tax questions. This article is for general information; for advice on your own situation, get in touch.
