Buying off-plan in Dubai involves escrow protection, Oqood registration, payment milestones, and handover. This guide walks you through what to verify at each stage, how RERA and DLD protect buyers, and what to do at handover and before the final DLD transfer. We reference RERA Escrow, DLD Oqood, and developer contract practice.
Escrow and RERA Project Registration
RERA-registered projects must use an escrow account; buyer payments go into the escrow and are released to the developer according to construction milestones. Verify the project is on the RERA list and that your payments are to the correct escrow account. Never pay into a non-escrow account for an off-plan purchase.
Oqood Registration: What and When
Oqood is the DLD system for registering off-plan purchases before the building is completed. It gives you a legal record and protects your interest. The developer usually initiates Oqood after you have paid a set percentage. Keep your Oqood certificate and all payment receipts.
Payment Milestones and Delays
Your contract will set payment milestones (e.g. 20% on booking, 30% on structure, 30% on MEP, 20% on handover). Missing a payment can lead to penalties or cancellation. There is no standard for delays; check the contract for delay and compensation clauses.
Handover and Snagging
At handover you receive keys and sign a handover form. Inspect the unit and list any defects (snagging) before or at handover; developers typically have a defects liability period. Do not sign a clean handover if there are major snags without getting them acknowledged in writing.
DLD Transfer at Completion
After handover, the developer applies for completion and then individual title deeds. You will need to pay the 4% DLD transfer fee and other registration costs to get the deed in your name. If you had a mortgage, the bank will be involved in the transfer.
Red Flags with Off-Plan Developers
Red flags: unregistered projects, pressure to pay outside escrow, unclear payment schedule, or no Oqood. Always use a RERA-registered project and a lawyer if the contract is complex. Use our Property Fees Calculator to budget for all costs.