Buying an Off-Plan Property in Dubai: A Lawyer's Checklist

Welcome back to Lawgical with Ludmila, where we untangle the legal knots so that you don't have to. I'm Ludmila Yamalova, a U.S.-qualified lawyer based in Dubai. In each episode, we break down complex legal issues into clear, practical insights that you can actually use.

Today we're discussing something almost everyone in the UAE considers at some point: buying property. More specifically, we'll focus on what you need to check before paying a single dirham.

In our practice, we regularly see buyers who have paid hundreds of thousands of dirhams to developers, only to discover later that the project was not properly registered, the money was paid into the wrong account, or the paperwork did not reflect what they believed they were purchasing. By then, recovering those funds often becomes expensive, time-consuming, and uncertain. This episode is intended to serve as a practical buyer's guide. We'll discuss the key checks every investor should make, the laws that protect buyers, and the options available if something has already gone wrong.

Before we begin, it's important to note that today's discussion focuses specifically on Dubai. The UAE consists of seven Emirates, each with its own real estate laws. While many of the principles we'll discuss also apply elsewhere in the UAE, the specific registration requirements and regulatory framework differ from one Emirate to another. That said, there is also a federal legal framework that underpins real estate transactions across the UAE: the Civil Transactions Law. This law governs contracts generally, including matters such as consent, misrepresentation, contractual remedies, and termination. In fact, I've dedicated an entire podcast to the Civil Transactions Law because it plays such an important role in understanding contracts and legal relationships.

The current Civil Transactions Law is Federal Decree-Law No. 25 of 2025. Although introduced in 2025, it came into force in June 2026. It remains to be seen how the courts will approach disputes involving contracts signed before the new law took effect. However, many of the core legal principles remain consistent with those under the previous Civil Code, so in practice the outcome of many real estate disputes is unlikely to change significantly.

Understanding the Legal Framework

Think of the Civil Transactions Law as the legal foundation. It establishes the general principles that apply to contracts across the UAE. Layered on top of that are more specific laws governing particular areas, such as employment, bankruptcy, consumer protection, and real estate.

In Dubai, there is a comprehensive body of legislation specifically regulating property transactions. These laws deal with matters such as developers, project registration, off-plan sales, escrow accounts, freehold ownership, leasehold interests, and many other aspects of the real estate market. Whenever a Dubai-specific real estate law addresses a particular issue, it generally takes precedence over the broader provisions of the Civil Transactions Law. However, the Civil Transactions Law continues to govern the underlying contractual relationship, including how contracts are interpreted, when they may be terminated, what remedies are available, and how disputes are resolved.

Today's discussion focuses primarily on off-plan property, because that is where buyers face the greatest legal risk. By definition, an off-plan property has not yet been completed. In some cases, construction has barely begun. In others, the building may already be well underway or almost complete. Regardless of the stage, buyers are purchasing something they cannot fully inspect. They are relying largely on contracts, plans, marketing materials, and representations about what the finished property will eventually look like. That naturally creates greater risk than purchasing a completed property, where you can physically inspect the unit, commission surveys, review the title deed, and assess the building before committing to the purchase.

It is precisely because of those additional risks that Dubai has developed such a detailed legal framework for off-plan developments. These laws are not intended to favour either developers or buyers. Rather, they exist to protect the integrity of the market by safeguarding investors, who are generally the more vulnerable party in the transaction.

One important exception is property located within the Dubai International Financial Centre (DIFC). The DIFC has its own legal system, courts, and real estate framework. Accordingly, today's discussion relates to property governed by Dubai's general real estate laws rather than property situated within the DIFC. With that legal framework in mind, let's move on to the first—and arguably the most important—check every buyer should make before investing in an off-plan property.

Check 1: Verify the Developer and the Project

The first thing every buyer should verify is whether both the developer and the project have been properly registered.

Everything we'll discuss from this point is regulated by the Dubai Land Department (DLD) and, in particular, the Real Estate Regulatory Agency (RERA). The relevant legislation is publicly available on the Dubai Land Department's website, making it relatively easy for buyers to verify important information before committing to a purchase.

Before a developer is legally permitted to sell an off-plan property, certain requirements must already be satisfied. Importantly, when I refer to "selling," I don't just mean signing a Sale and Purchase Agreement. Under Dubai law, what matters is the disposition of a real estate interest, which includes any transaction that transfers—or begins to transfer—an interest in a property. Even something as simple as a booking or reservation form for a specific unit may amount to a disposition of a real estate interest.

The first requirement is that the developer must already be registered with the Dubai Land Department. Simply establishing a company is not enough. The company must be licensed specifically as a real estate developer before it can legally market or sell off-plan units. The project itself must also be registered before any units are offered for sale. Project registration involves much more than identifying a plot of land. The Dubai Land Department reviews the project's specifications, construction timeline, milestones, contractual framework, and other regulatory requirements before granting approval.

Why This Requirement Exists

I actually remember when many of these laws were introduced because I witnessed the evolution of Dubai's real estate market firsthand.

Before these protections existed, it was not uncommon for individuals to market projects and collect money from buyers before obtaining the necessary approvals. Some genuinely intended to complete the developments. Others hoped to secure investor funding first and deal with the formalities later. Unfortunately, many buyers were left with contracts but no completed projects. That history is exactly why today's legal framework is so much stricter.

The Legal Position

These requirements are primarily set out in Dubai Law No. 13 of 2008, which established the Interim Real Property Register.

Under Article 4, a developer cannot dispose of off-plan units before obtaining the necessary approvals. Those approvals include both the developer's registration and the registration of the project itself. Article 10 goes further by providing that contracts entered into before those approvals have been obtained may be considered null and void. This is an important legal concept. It does not simply mean the contract is defective—it means the contract may be treated as though it never legally existed because it was fundamentally flawed from the outset. In practical terms, that generally means the parties should be restored to the position they were in before entering into the agreement.

For example, if you invested AED 1 million in an off-plan project and later discovered that the developer had not obtained the necessary approvals, you may be entitled to recover the full amount paid. Depending on the circumstances, you may also have grounds to claim compensation for losses resulting from the defective transaction.

It is also worth remembering that a booking or reservation form is not "just a booking form." Under the Civil Transactions Law, a document is treated as a contract based on its legal substance rather than its title. If it contains the essential elements of a contract, it may create legally enforceable rights and obligations.

Practical Takeaway

Before paying any money, verify that both the developer and the project are officially registered with the Dubai Land Department. Fortunately, this information is publicly available through the DLD's online records. Rather than relying solely on marketing materials or verbal assurances, take the time to verify the project's status independently. It is one of the simplest checks you can perform, and one of the most effective ways to avoid an expensive mistake.

Check 2: Make Sure Your Money Goes Into the Correct Account

Once you've confirmed that both the developer and the project are properly registered, the next question is equally important:

Where is your money actually going?

For every off-plan project in Dubai, the law requires a dedicated escrow account. This requirement is set out in Dubai Law No. 8 of 2007 on Escrow Accounts for Real Estate Developments, particularly Articles 6 and 9. Interestingly, I also remember when this law was introduced. At the time, it generated considerable discussion within the industry, but it was introduced for very good reasons. Before the Escrow Law came into effect, a developer could have multiple projects while operating a single corporate bank account. Money received from investors across different developments could all be deposited into that one account, giving the developer complete control over how those funds were used. Today, that is no longer permitted.

Every off-plan project must have its own dedicated escrow account, opened specifically for that development. More importantly, the account is not simply controlled by the developer. It operates under the supervision of the Dubai Land Department and RERA, with funds being released as construction progresses in accordance with the approved project plan. The purpose is simple: to ensure that investors' money is actually used to build the project they invested in.

I remember seeing firsthand why this protection became necessary. Developers would often collect money for several projects and use those funds interchangeably. If one development encountered financial difficulties, money from entirely different projects could end up being diverted to keep that project afloat, leaving other investors exposed. The Escrow Law was introduced to prevent exactly that scenario. Today, every dirham paid towards an off-plan project must go into that project's escrow account. It should never be paid into the developer's ordinary corporate account or into an account belonging to another project.

A Common Red Flag

Suppose a developer asks you to transfer your payment directly into the company's general bank account rather than the project's escrow account. That should immediately raise concerns. Accepting funds outside the designated escrow account is a breach of the law and may expose the developer to serious consequences, including financial penalties, removal from the register of approved developers, and, in some cases, even criminal liability. As a buyer, you should always confirm that the payment instructions match the official escrow account for the project.

Fortunately, this information is also available through the Dubai Land Department's records. In addition to confirming that the project has been registered, the DLD records typically identify the project's escrow account, allowing you to verify the payment details independently. It is also important to understand that this requirement applies from the very beginning of the transaction. Sometimes buyers are told that a reservation fee or booking fee can simply be paid into the developer's account and transferred to the escrow account later. That is not how the law works.

Whether it is a reservation fee, booking fee, deposit, or instalment, any payment made towards the purchase of an off-plan property should be paid directly into the project's escrow account.

Practical Takeaway

Before transferring any money:

• Confirm that the account is the official escrow account for the project.
• Verify that the account details match the Dubai Land Department's records.
• Never assume the payment instructions are correct simply because they came from a developer or real estate agent.

Taking a few minutes to verify the destination of your funds can save you from significant legal and financial difficulties later.

Check 3: Your Payment Schedule Should Follow Construction Progress

The next issue buyers should pay close attention to is how the payment plan is structured. This is another area where Dubai's legal framework has evolved significantly over the years.

I remember a time when developers would advertise special offers encouraging buyers to pay most—or even all—of the purchase price upfront in exchange for substantial discounts. Some buyers paid 90% or even 100% of the purchase price for developments that, at the time, existed only on paper. Unfortunately, when projects stalled or failed altogether, those buyers had already parted with all of their money. To reduce that risk, the law introduced another important safeguard: payments for off-plan properties must generally correspond with construction milestones, rather than arbitrary dates on a calendar.

This requirement was introduced through Executive Council Resolution No. 6 of 2010, implementing Dubai Law No. 13 of 2008, particularly Article 20. The principle is straightforward. Investors should only be asked to make further payments as construction reaches specified stages of completion. This creates an important balance. Buyers are not funding a project long before meaningful construction has taken place, while developers continue receiving funds as they achieve measurable progress.

Why This Matters

Imagine signing a payment plan that requires you to pay 10% today, another 10% in three months, another 10% three months later, and so on—regardless of whether construction has actually progressed. If, after making several payments, the project has barely moved beyond the foundations, you've effectively financed the development without receiving the protection intended by the law. That is precisely the type of situation these regulations were designed to avoid.

Of course, there may be practical reasons why both developers and buyers might prefer accelerated payment schedules. Developers benefit from having greater liquidity upfront, while some investors may want to transfer larger amounts for their own financial or tax planning reasons. However, regardless of those commercial considerations, the legal framework exists to protect buyers. Choosing to depart from that framework may increase your own exposure if something goes wrong.

The Buyer's Rights

If a developer refuses to link payments to genuine construction milestones, Article 20 provides buyers with legal grounds to challenge that arrangement. Depending on the circumstances, this may entitle a buyer to seek termination of the contract because the developer has failed to comply with the legal requirements governing off-plan sales.

Practical Takeaway

Before signing any booking form or Sale and Purchase Agreement, review the payment schedule carefully. Ask yourself one simple question:

Are my payments linked to actual construction progress, or am I simply paying according to dates on a calendar?

If the payment plan does not reflect genuine construction milestones, it is worth seeking clarification before proceeding with the investment.

Check 4: Make Sure the Paperwork Matches the Reality

When buying an off-plan property, the paperwork is everything. Unlike a completed property, where you can physically inspect the unit before purchasing, an off-plan investment is largely built on documents. Those documents begin with the advertisements and marketing brochures, continue through the booking or reservation form, payment receipts, and eventually culminate in the Sale and Purchase Agreement (SPA). Collectively, these documents form the contractual relationship between the buyer and the developer.

Many buyers assume that once they receive the SPA, everything that came before it becomes irrelevant. That isn't necessarily the case. Under the Civil Transactions Law, courts will often consider the entire body of communications and documents to understand what the parties actually agreed to. That can include marketing materials, written representations, correspondence, and earlier contractual documents, depending on the circumstances.

This is why buyers need to pay close attention to what they are being promised throughout the sales process.

Don't Rely on Marketing Alone

One of the most common issues we see is a mismatch between what buyers are told and what eventually appears in the contract.

Quite understandably, many investors become excited about purchasing property in Dubai. They visit impressive sales galleries, see beautiful renderings, and receive enthusiastic presentations from developers and sales agents. In that excitement, buyers often place greater reliance on those verbal representations than on the actual contractual documents they eventually sign. For example, a buyer may be told that:

• the project will be completed in 2030;
• the apartment will have an unobstructed sea view;
• residents will have access to certain amenities;
• the property can be freely rented on a short-term basis; or
• the unit will have particular specifications or finishes.

However, when the Sale and Purchase Agreement arrives, those promises are either missing altogether or differ from what was originally represented. We've seen situations where buyers purchased units believing they would be able to operate them as short-term holiday rentals, only to discover later that the agreement required participation in a hotel management programme or imposed restrictions on independent rentals.

Similarly, we've seen differences between promised completion dates, unit specifications, and even views from the property.

If It Matters, Make Sure It's Documented

If a particular feature is important enough to influence your decision to buy, it should appear somewhere in the contractual documentation. Developers will sometimes say that they cannot amend the standard Sale and Purchase Agreement because it has already been approved or registered. That may well be true.

However, that doesn't necessarily prevent the parties from signing a separate addendum confirming specific terms that are important to the buyer. If your decision to purchase depends on a particular view, layout, completion date, or other material feature, make sure that commitment is documented. Verbal assurances are much more difficult to prove later.

Misrepresentation Can Have Legal Consequences

The Civil Transactions Law protects parties who enter into contracts based on material misrepresentations. If you are induced to purchase a property because you were told something that later proves to be untrue, that may amount to legal deception.

For example, imagine a developer's brochure states that completion will occur in 2030, but the Dubai Land Department's own records show an anticipated completion date of 2031. Some may argue that one year is not a significant difference. From an investor's perspective, however, it certainly can be. An additional year before handover may mean another year before the property generates rental income or increases in value. Where that difference influenced the buyer's decision, it may constitute a material misrepresentation.

Under Article 172 of the Civil Transactions Law, misrepresentation or deception may give the affected party the right to seek cancellation of the contract, depending on the circumstances.

Practical Takeaway

Before signing any documents:

• Compare the marketing materials with the contractual documents.
• Verify key information against the Dubai Land Department's records.
• Make sure important promises are reflected in writing.
• Never rely solely on verbal representations.

If something influenced your decision to invest, ensure it forms part of the legal agreement—not just the sales presentation.

Check 5: Read the Contract Carefully, Especially the Termination Clauses

By the time buyers receive the Sale and Purchase Agreement, many assume that the transaction is largely complete. In reality, this is one of the most important stages of the process.

Most Sale and Purchase Agreements used by developers are what lawyers refer to as contracts of adhesion. In simple terms, these are standard-form contracts drafted entirely by one party, with little or no opportunity for negotiation. That is why buyers are often told:

"This is our standard agreement."

Or:

"We cannot change the contract."

In many cases, that may be true. The standard agreement may already have been approved as part of the project's registration. However, that does not mean every provision is necessarily enforceable in the way it is written.

One-Sided Clauses

It is still quite common to see agreements that give the developer extensive rights while offering the buyer very few. For example, some contracts allow the developer to terminate the agreement under certain circumstances without giving the buyer equivalent rights. From a legal perspective, that raises concerns.

Under the Civil Transactions Law, courts recognise that contracts of adhesion place one party in a significantly weaker bargaining position. As a result, the law gives courts greater discretion when interpreting those agreements. If a contractual term is unfair or disproportionately favours one party, the court may interpret it differently, modify its effect, or in some cases disregard it altogether. The law specifically recognises that where a contract has not been negotiated, ambiguities and unfair provisions should generally be interpreted in favour of the weaker party—in this case, the buyer. This principle is reflected in Articles 120 and 223 of the Civil Transactions Law.

That does not mean every one-sided clause is automatically invalid. Rather, it means that the wording of the contract is not necessarily the final word if a dispute later reaches the courts.

Practical Takeaway

Before signing the Sale and Purchase Agreement:

• Read the termination and cancellation provisions carefully.
• Pay attention to clauses that appear to favour only one party.
• Ask questions if something seems unreasonable.
• Remember that standard contracts are still subject to the protections contained in the Civil Transactions Law.

Understanding those provisions before signing is far easier than trying to challenge them after a dispute arises.

Check 6: Ensure Your Purchase Is Properly Registered

Once the developer and project have been verified, the funds are paid into the correct escrow account, and the payment schedule complies with the law, there is one more important step that buyers often overlook: registering the transaction itself.

For off-plan properties, the purchase must be registered in the Interim Real Property Register, commonly known as Oqood. Unlike a title deed, which is issued once a property has been completed and handed over, Oqood records ownership interests in off-plan properties while construction is still ongoing. It provides legal recognition of the buyer's interest long before the project is finished. Importantly, registration should happen as soon as the real estate interest is transferred. In practical terms, that means once the booking or reservation form has been signed and the buyer commits to purchasing a specific unit.

Many buyers mistakenly believe that registration only happens after signing the Sale and Purchase Agreement. That is not necessarily the case. The initial disposition of the real estate interest should already be recorded through Oqood. There is also a registration fee, currently 4% of the purchase price, which is payable to the Dubai Land Department. Although the buyer bears this cost, the developer is responsible for collecting the fee and completing the registration process.

Why Oqood Registration Matters

The purpose of Oqood is to protect buyers from a number of potential risks. Without a formal register, it would be much easier for a developer to sell the same unit more than once, alter the agreed specifications, or create uncertainty about ownership during construction. By registering the transaction promptly, the buyer's interest becomes formally recorded with the Dubai Land Department.

Over the years, the Oqood system has evolved considerably. I remember when the registration fee was only 2%, and later when buyers initially paid just AED 1,000, with the balance due upon completion of the project. Today, the system has become much more comprehensive, requiring registration much earlier in the transaction.

Registration Does Not Mean You Must Accept Every Future Change

One important point is worth emphasising. Just because your interest has been registered through Oqood does not mean you are obliged to accept whatever Sale and Purchase Agreement the developer later presents.

We've seen situations where buyers sign a reservation form based on one set of representations, only to receive an SPA several months later containing materially different terms. Those differences might relate to:

• the completion date;
• the purchase price;
• the unit specifications;
• the permitted use of the property; or
• other important contractual provisions.

If those changes are material, you are not automatically required to sign the agreement simply because the initial transaction has already been registered. The protections under the Civil Transactions Law continue to apply. Depending on the circumstances, material differences between what was originally represented and what ultimately appears in the SPA may amount to misrepresentation or another legal ground for challenging the transaction.

Practical Takeaway

Treat Oqood registration as an important layer of protection—not as the end of the legal process. Once the Sale and Purchase Agreement is presented, review it carefully to ensure it reflects the transaction you originally agreed to. If there are significant differences, seek legal advice before signing.

Common Problems Buyers Encounter

Having discussed the key legal requirements, let's look at some of the situations we regularly see in practice. Each of these reflects a failure to comply with one or more of the protections we've already discussed.

1. The Project Was Never Properly Registered

A buyer pays a reservation fee followed by several instalments, only to discover later that the project had not yet been approved or registered with the Dubai Land Department. Under Dubai Law No. 13 of 2008, that may mean the underlying contract is null and void, entitling the buyer to recover the money paid.

2. Payments Were Made Into the Wrong Account

Instead of paying into the project's escrow account, the buyer transfers funds into the developer's ordinary company account. That is a direct breach of the Escrow Law and may expose the developer to regulatory action, financial penalties, or even criminal liability. Depending on the circumstances, it may also provide the buyer with grounds to terminate the transaction.

3. Payments Are Not Linked to Construction

The buyer follows a payment schedule requiring regular instalments, yet the project shows little or no meaningful construction progress. Where the payment structure does not comply with the legal requirement to link payments to construction milestones, the buyer may have statutory grounds to challenge the arrangement.

4. The Information Doesn't Match

The marketing brochure promises one completion date, while the Dubai Land Department's records show another. Or perhaps the promised view, amenities, or permitted use of the property differs from what ultimately appears in the contractual documentation.

These kinds of inconsistencies may amount to material misrepresentations capable of affecting the validity of the transaction.

5. Oqood Registration Without the Buyer's Authority

Another situation we've encountered is where a buyer decides not to proceed with the purchase and communicates that decision to the developer. Despite this, the developer proceeds to register the transaction through Oqood using the buyer's funds. That raises a different legal issue altogether. Beyond contractual concerns, it may involve the unauthorised use of another person's money and, depending on the facts, could potentially give rise to issues such as breach of trust.

Although each case depends on its own facts, situations like these demonstrate why buyers should monitor every stage of the transaction rather than assuming everything is being handled correctly. The common thread running through all of these examples is simple: most problems could have been identified much earlier had the necessary checks been carried out before the money changed hands.

What Can You Do If Something Goes Wrong?

Even with the protections built into Dubai's real estate laws, disputes can still arise. The important thing is to understand that buyers are not without remedies. Depending on the circumstances, there are generally three possible avenues: rescission of the contract, settlement, or legal proceedings.

Rescinding the Contract

If the project was not properly registered, the payment structure did not comply with the law, or you were induced into the transaction through material misrepresentations, you may have legal grounds to seek cancellation of the contract and recover your money. Under the Civil Transactions Law, where a contract is declared null and void, the objective is generally to restore both parties to the position they were in before entering into the agreement. In practical terms, this usually means the buyer receives a refund of the amounts paid.

The process often begins with a formal legal notice setting out the relevant facts, identifying the legal breaches, and requesting a refund within a specified timeframe. In many cases, a well-prepared legal notice is sufficient to resolve the matter without the need for court proceedings.

Settlement

Where possible, settlement is often the most practical and cost-effective solution. It is quicker, less expensive, and provides greater certainty than litigation. In many situations, developers are aware of the legal risks they face if they have failed to comply with the applicable laws.

For example, where a developer has sold units before obtaining the necessary approvals or accepted payments outside the required escrow account, they may be exposed not only to civil claims but also to regulatory penalties or, in certain circumstances, criminal liability. That exposure often creates a strong incentive to resolve disputes amicably.

In practice, we've seen many situations where developers agree to refund buyers or negotiate another acceptable solution rather than allowing the dispute to escalate. That said, not every developer takes that approach. Some choose to maintain their position until formal legal proceedings are commenced. Ultimately, if the matter reaches the courts, the court's role is to apply the law to the facts before it. The identity or size of the developer does not change the legal principles that apply.

Court Proceedings

If settlement is not possible, the final option is to pursue legal action. Depending on the nature of the dispute, this may involve filing a complaint with RERA, commencing proceedings before the Dubai Courts, or, where funds have been misused, involving the Dubai Police if the circumstances warrant it. The remedies available will depend on the facts of each case, but the court may:

• declare the contract null and void;
• order the return of the buyer's money;
• award compensation, where appropriate; or
• grant other remedies available under the Civil Transactions Law.

Of course, litigation involves both time and cost. Success will depend not only on the facts but also on the available evidence and the legal arguments presented. For that reason, if a reasonable settlement can be achieved, it is often the preferable outcome. The courts remain an important safeguard, but they should generally be viewed as the final step rather than the first.

Practical Checklist for Buyers

To conclude, here is a practical checklist you can use before investing in an off-plan property in Dubai. Before paying any money:

• Confirm that both the developer and the project are properly registered with the Dubai Land Department.
• Verify that all payments are being made into the project's official escrow account, not the developer's general bank account.
• Ensure that your payment schedule is linked to construction milestones, rather than arbitrary calendar dates.
• Cross-check key details—such as the completion date and unit specifications—against the Dubai Land Department's official records.
• Read both the booking form and the Sale and Purchase Agreement carefully, paying particular attention to termination and cancellation clauses.
• Keep copies of every document, including payment receipts, correspondence, booking forms, marketing materials, and written representations. If an important promise influenced your decision to buy, make sure it is recorded in writing rather than relying solely on verbal discussions.

Documentation can make an enormous difference if a dispute arises later.

Conclusion

Buying property in Dubai is safer today than it has ever been. Over the years, the legal framework has evolved significantly to provide stronger protection for investors, particularly in the off-plan market. Those protections, however, only work if buyers take advantage of them. Before transferring any money, verify the developer, verify the project, verify the escrow account, and make sure the paperwork accurately reflects what you are buying. If something doesn't add up, pause the transaction and seek legal advice before proceeding. The law provides buyers with meaningful protection, but the best protection is always preventing the problem in the first place.

That's all for this episode of Lawgical with Ludmila. If you found this discussion helpful, you can find more legal resources on our website, lylawyers.com. You can also listen to the podcast on Apple Podcasts and Spotify, or watch the full video episodes on YouTube.

Until next time, stay informed, stay safe, and keep things Lawgical.