How off-plan works

How an off-plan purchase works

Buying off-plan means buying a home from a developer before it is built, or while construction is under way. You pay in stages under a payment plan rather than all at once, and the home is handed over when the project is complete. Developers must register each project with the DLD before they can sell units in it.

Your payments are protected by a project escrow account, and your purchase is recorded on Oqood, the DLD’s interim register for off-plan sales. When the project is complete and the price is paid as agreed, the home is handed over and the title deed is issued. Our primary desk guides you through each stage, from launch to handover.

Choosing a project

Start with the developer’s record. Look at completed projects, how closely they met their handover dates and the quality of the finished homes. Check that the project is registered with the DLD and that its escrow account is named in the sale and purchase agreement. Our primary desk shares what it knows of each developer, plainly and in writing.

Then judge the home itself. Location, layout, orientation and outlook matter as much off-plan as they do in ready property, and they are harder to change later. Compare the payment plan, expected service charges and completion timeline with ready homes nearby. A sensible off-plan purchase should still make sense if handover takes longer than planned.

• Developer’s completed projects and delivery record
• DLD project registration and named escrow account
• Layout, orientation and expected service charges
• Payment plan measured against your cash flow

Reservation and the sale agreement

Launches often begin with an expression of interest, followed by a reservation once units are released. You choose a unit, sign a reservation form and pay a booking amount set by the developer. Read the reservation terms before paying. They explain whether the amount is refundable and how long you have to sign the sale and purchase agreement.

The sale and purchase agreement sets out the price, payment plan, specification, expected completion and your remedies if the developer is late. Once it is signed and the first instalment is paid, the sale is registered on Oqood. The DLD fee of 4% of the price is typically due at this stage, together with an administrative fee charged by the developer.

• Reservation form and booking amount
• Sale and purchase agreement signed
• First instalment paid
• Oqood registration and DLD fee

How escrow protects your payments

Off-plan payments in Dubai are made into a project escrow account held with an approved bank and overseen by the DLD and RERA. Money in the account is released to the developer as construction progresses, rather than all at once. This structure is designed to ensure that buyers’ payments are used to build the project they bought into.

Pay only into the escrow account named in your sale and purchase agreement. Never pay instalments to a personal account, a broker or a third party, whatever the reason given. Keep every receipt and the bank’s confirmation of each transfer. If anything looks unusual, stop and ask us. We will check the account details against the official project record.

Oqood: your interim registration

Oqood is the DLD’s interim registration system for off-plan property. When your sale is registered, you receive an Oqood certificate that records you as the buyer of a specific unit in a registered project. It plays the role of a title deed until the home is complete, and protects your interest against competing claims on the same unit.

The Oqood record is also what allows an off-plan home to be resold before handover, with the developer’s consent, and lenders refer to it when financing off-plan purchases. Keep the certificate with your sale and purchase agreement. On completion, the Oqood registration is replaced by a title deed in your name, once the conditions in your agreement are met.

Completion and handover

As completion approaches, the developer sends a handover notice with the final payment due and the documents required. Arrange the final payment, or a mortgage if you need one, in good time. Before accepting the keys, inspect the home carefully, ideally with a professional snagging inspector, and record any defects in writing for the developer to fix.

At handover, you settle any final amounts, including service charges from the handover date, sign the handover documents and collect the keys. You then open utility accounts and, if you are letting, register the tenancy on Ejari. The DLD issues the title deed once the conditions are met. Our primary desk checks each document with you before you sign.

• Handover notice and final payment
• Professional snagging inspection
• Service charges from the handover date
• Utility accounts and the title deed