Buying Off-Plan in Dubai: The Process, Oqood and Escrow Protection

An off-plan acquisition begins with a reservation: the buyer selects a unit, pays a booking amount and receives a reservation form. The developer then issues the Sale and Purchase Agreement, which sets out the unit specification, payment plan, anticipated completion date and the remedies available if construction is delayed.

Payment plans are typically staged against time or construction milestones, with a share due at booking, further instalments during construction and the balance at handover. Some developers also offer post-handover plans. Sotheby's International Realty Dubai advises buyers to check that every instalment is paid into the project escrow account, never to a personal or general company account.

Before reserving, compare the launch price per square foot with completed transactions nearby, and with resales in the developer's earlier phases. This gives a grounded view of the premium being paid for new stock and the timeline before the building can generate rental income.

At MRK Real Estate, our advisers prepare this schedule for every client at the outset, drawing on DLD records and our experience across Dubai's prime communities, so each step from first viewing to title deed is planned rather than discovered. We recommend confirming every figure with the relevant authority, as fees and procedures are periodically updated.

Oqood is the Dubai Land Department's interim real estate register for off-plan units. Once the SPA is signed and the initial payment made, the developer registers the sale, and the buyer receives an Oqood certificate showing their ownership interest before a title deed exists.

Registration matters because it is the legal evidence of your purchase. It prevents the same unit being sold twice and allows an off-plan unit to be resold or, in some cases, mortgaged before completion. The 4% DLD fee is generally payable at this stage; published guides differ on the separate administrative charges, so request the developer's exact fee breakdown in writing.

Buyers should keep the Oqood certificate safe and confirm that the details on it, including the unit number, area and purchaser names, match the SPA exactly. Errors are easier to correct while the developer is still processing the registration.

Dubai's Law No. 8 of 2007 requires developers selling off-plan to open a dedicated escrow account for each project with a bank accredited by DLD and RERA. As Nakheel's buyer-protection guide explains, money paid into that account can be released to the developer only against verified construction progress, which keeps buyer funds tied to the building they are paying for.

Khaleej Times notes that a developer must also have its project registered with RERA before marketing it. Buyers can verify both the project registration and the escrow account details through official DLD channels, and should do so before paying any reservation amount.

Escrow does not cover every risk. It protects funds from being diverted to other projects, but buyers still rely on the developer's capacity to complete, which is why delivery track record remains a central part of due diligence.

Escrow and Oqood protect the money, but they do not guarantee timelines or finish quality. Review the developer's delivery record on comparable projects, read the SPA clauses on delay, specification changes and termination, and check the construction status reported on the DLD's project inquiry services.

Also consider what you will pay on completion: the handover instalment, service charges from the date the building is handed over, and fit-out or furnishing costs. Investors should test rental assumptions against current completed-stock rents in the same community rather than marketing projections.

Off-plan investors should also consider concentration. Holding several units in a single tower increases exposure to that building's delivery timeline and resale demand at handover, while spreading commitments across communities or completion dates can smooth both payment schedules and leasing risk.

When construction completes and the building receives its completion certificate, the developer issues a handover notice. The buyer settles the remaining balance, inspects the unit through a snagging survey, and receives keys. The Oqood registration is then converted into a full title deed.

If finance is involved, the bank releases its portion at handover and registers its mortgage against the new title. Fees, procedures and eligibility rules change; confirm current figures with the Dubai Land Department, your trustee office, your bank or a licensed legal adviser before you commit.

One feature that distinguishes Dubai's off-plan market is the ability to transfer an Oqood-registered unit before completion. Developers set their own conditions, commonly requiring that a minimum share of the price has been paid and charging an administration fee for the assignment. The incoming buyer generally pays a fresh 4% DLD fee on the price at which they buy.

Before relying on an early exit, read the SPA carefully: some contracts restrict resale until a threshold is met, and some charge a percentage of the price rather than a flat fee. Liquidity can also vary by phase and unit type, so investors should look at actual resale volumes in comparable launches rather than assume demand.

For buyers entering at resale, request the Oqood certificate, the developer's statement of account showing payments made to escrow, and written confirmation of the outstanding instalments. These documents establish exactly what you are taking over and protect you from inheriting arrears.

As with any long-dated commitment, keep a reserve for the remaining payment plan, including the handover balance, which is often the largest single instalment.