Buying off-plan in Dubai, with the law on your side.
Buying off-plan means committing early to a project, usually with a staged payment plan. You still need to know what protects you: interim register, one escrow account per project, developer checks, handover, resale before completion. Dubai's rules decoded, limits included.
- 1
- escrow account per project (Law 8/2007)
- 5%
- retained one year after units are registered
- 50%
- maximum loan on an off-plan property (Central Bank)
- 30 days
- DLD notice period on a missed payment
Written by the SwissPro360 team
How it works
You sign a sale and purchase agreement (SPA) with the developer for a unit not yet built, and you pay in instalments. In Dubai, two laws frame the transaction. Law No. 8 of 2007 covers escrow accounts. Law No. 13 of 2008 covers the interim real property register, and Law No. 19 of 2020 amended it.
Oqood registration (interim register)
- Your purchase is entered in the interim register. Every sale or other disposition of an off-plan unit must be, or it is void (Law No. 13 of 2008, art. 3).
- To sell off-plan, the developer must have taken possession of the land and obtained the required approvals (same law, art. 4).
- The developer registers the sale on the DLD's Oqood portal, which issues a “provisional registration e-certificate”. For this service the DLD lists 2% of the value for the seller and 2% for the buyer. On top come AED 10 (≈ EUR 2) knowledge and AED 10 (≈ EUR 2) innovation fees. The contract says who actually pays.
- The interim register records sales before they move to the main property register (Law No. 13 of 2008, art. 2).
The escrow account (Law No. 8 of 2007)
| Rule | Article |
|---|---|
| Only a developer recorded on the register may operate; written DLD authorisation is needed before advertising or exhibiting an off-plan sale. | Art. 4, 5 |
| Buyers' payments are deposited into the project's escrow account, opened with an escrow agent under a written agreement. | Art. 7 |
| A separate account per project, dedicated exclusively to its construction; the developer's creditors cannot attach these funds. | Art. 9 |
| The escrow agent keeps regular statements of income and expenditure, which the DLD may audit. | Art. 11 |
| After the completion certificate, 5% of the account stays retained and is released only one year after the units are registered in the buyers' names. | Art. 14 |
| If the project is not completed, the escrow agent must protect depositors and ensure completion or refunds. | Art. 15 |
| Penalties: jail and a fine of at least AED 100,000 (≈ EUR 24,600) (or either), notably for misappropriating project funds. | Art. 16 |
To be confirmed · The English version of Law No. 8 of 2007 published on the Dubai Legal Portal mentions no amendment. Any later implementing rules or reforms are checked with the DLD. The Arabic text prevails.
Checking the developer and the project
- 1Is the developer on the DLD's list of licensed real estate developers?
- 2Does the project appear in the DLD's “Real Estate Project Status” service (search by name or number)? Does it show the developer's name, escrow bank, status and completion field?
- 3Is the account named in the contract for your payments the project's escrow account?
- 4Are the advert and the broker authorised? The DLD lets you check licences and advertising permits (“Validate Real Estate Licenses and Permits” / Trakheesi). It also lists licensed brokers.
You can run the same checks in the DLD's official Dubai REST app. We re-check the projects we list regularly; the DLD check remains the reference, and we show you how to do it.
Payment plans
- The schedule is specific to each developer's contract. It sets the deposit, instalments tied to dates or progress, the balance on handover and any post-handover instalments. No single legal schedule applies, which is why comparing pays off.
- Buyers' payments go into the project's escrow account (Law No. 8 of 2007, art. 7).
- With a mortgage, the UAE Central Bank caps financing of an off-plan property at 50% of its value, whatever the buyer.
Handover and snagging
- Completion is evidenced by a completion certificate, which triggers the 5% escrow retention (Law No. 8 of 2007, art. 14).
- Before taking the keys, inspect the unit and list the defects found in writing (snagging), for the developer to fix. The defects warranty and its period depend on the contract.
- Registration in the property register and issue of the title deed then take place with the DLD (process and fees to be confirmed for your project). Service charges run according to the contract and the building's rules.
Reselling before completion
- A registered off-plan unit may be sold, mortgaged or otherwise legally disposed of (Law No. 13 of 2008, art. 6). The resale must also be entered in the interim register (art. 3).
- The developer may not charge fees on a resale, except approved administrative costs (art. 7).
To be confirmed · Assignment conditions specific to each contract (minimum amount paid, the developer's written consent or “NOC”, administrative fees) are in your SPA, not in the law: have the developer confirm them. The resale price is set by the market on the day of sale: no one can promise it.
Risks and protections
| Situation | What the texts provide |
|---|---|
| Developer insolvency | Escrow funds are dedicated to the project and cannot be attached by the developer's creditors (Law 8/2007, art. 9). |
| Unfinished project | The escrow agent must protect depositors and ensure completion or refunds (art. 15). Actual timeframes remain uncertain. |
| Late handover | Dates and any compensation are set by the contract; progress can be followed on the DLD's “Project Status” service. |
| Buyer misses an instalment | The DLD gives 30 days' notice. Then, depending on verified progress: over 80% — keep the contract, auction or terminate retaining up to 40%; 60 to 80% — terminate retaining up to 40%; below 60% (works started) — up to 25%. Any excess is refunded within one year, or within 60 days if the unit is resold (Law 19/2020). |
| Unregistered sale | Void unless entered in the interim register (Law 13/2008, art. 3). |
| Price at handover or resale | No text protects it: a property's future value depends on the market, and no one can promise it. |
Frequently asked questions
What is Oqood?
It is the Dubai Land Department portal on which the developer enters an off-plan sale in the interim register. It issues a provisional registration e-certificate. An off-plan sale not entered in that register is void (Law No. 13 of 2008, art. 3).
Does my money go straight to the developer?
No: the law requires off-plan buyers' payments to be deposited into the project's escrow account with an escrow agent. They are dedicated exclusively to construction (Law No. 8 of 2007, art. 7 and 9).
How do I check a developer in Dubai?
On the DLD website or the Dubai REST app: the list of licensed developers and the licence and advertising permit check. The “Real Estate Project Status” service shows the developer, escrow bank and status.
Can an off-plan property be resold before completion?
The law allows it for a registered unit, with the resale entered in the interim register (Law No. 13 of 2008, art. 3 and 6). The developer's conditions (minimum paid, written consent, fees) depend on the contract. The resale price depends on the market: no one can promise it.
What happens if I miss an instalment?
The DLD gives you 30 days' notice. Without a cure, the developer acts depending on project progress. It may terminate and retain up to 40% or 25% of the unit's value. Above 80%, it may keep the contract or request an auction (Law No. 19 of 2020).
Official sources
Each source was opened on 31/10/2026. The official text prevails.
- Dubai Legal Portal — Law No. (8) of 2007, Escrow Accounts for Real Estate Development
Developer register, sale authorisation, escrow account per project, protection from creditors, statements, 5% retention, unfinished project, penalties (art. 4 to 17).
- Dubai Legal Portal — Law No. (13) of 2008, Interim Real Property Register
Interim register, nullity of unregistered sales, conditions for off-plan sales, resale and mortgage, resale fees (art. 2, 3, 4, 6, 7).
- Dubai Legal Portal — Law No. (19) of 2020 amending Law No. (13) of 2008
Buyer default: 30-day notice, 40% / 25% retentions depending on progress, refund deadlines.
- Dubai Land Department — Request to register the initial sale (Oqood)
Provisional registration by the developer via Oqood, listed fees, certificate issued.
- Dubai Land Department — Real Estate Project Status
Project search: developer, escrow bank, status, completion.
- Dubai Land Department — Licensed Real Estate Developers
List of licensed developers.
- Dubai Land Department — Validate Real Estate Licenses and Permits (Trakheesi)
Licence and advertising permit check.
- Central Bank of the UAE — Rulebook, Regulations Regarding Mortgage Loans, Article (3)
50% loan cap for a property bought off-plan.
Checklist: buying in Dubai from France, Switzerland, Belgium or Canada
A checklist to print or keep on your phone throughout your project. Free, sent by email once your address is confirmed. (12-page PDF, in French)
A question about your case?
A RERA-licensed advisor goes through these points with you and points you to the right lawyer, bank or tax advisor.