---
title: "SPA"
canonical: https://www.uaepropertyagents.com/glossary/spa
markdown: https://www.uaepropertyagents.com/md/glossary/spa.md
type: glossary-term
description: "The Sale and Purchase Agreement is the binding contract between an off-plan buyer and the developer, setting the price, payment schedule and completion date."
publisher: "UAE Property Agents (Omnia)"
language: en-GB
usage: "You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting."
---

# SPA

> The Sale and Purchase Agreement is the binding contract between an off-plan buyer and the developer, setting the price, payment schedule and completion date.

Also known as: Sale and Purchase Agreement, Sales and purchase agreement, Off-plan sale contract.

## What SPA means for a buyer

The SPA is the contract you sign with a [developer](https://www.uaepropertyagents.com/glossary/developer) when buying off-plan, usually a few weeks after paying the [reservation fee](https://www.uaepropertyagents.com/glossary/reservation-fee). Once signed it is registered with the land department: in Dubai through [Oqood](https://www.uaepropertyagents.com/glossary/oqood), in Abu Dhabi with [ADREC](https://www.uaepropertyagents.com/glossary/adrec).

It is drafted by the developer and is rarely negotiable, so the task is to understand it. The clauses that matter most are:

- **Anticipated completion date** and how far the developer may extend it. Extensions of up to a year without compensation are common.
- **The [payment plan](https://www.uaepropertyagents.com/glossary/payment-plan)** and what triggers each instalment: a calendar date or a certified construction milestone.
- **Default.** In Dubai, Law No. 13 of 2008 lets a developer, after 30 days' notice through the DLD, terminate and keep up to 40% of the price where the project is at least 60% built, or up to 25% below that.
- **Area and specification.** Developers allow themselves a tolerance; Dubai's rules require compensation if the net area is more than 5% smaller than agreed.
- **Resale.** The share of the price you must pay before an [assignment](https://www.uaepropertyagents.com/glossary/assignment) is permitted.
- **Fees at [handover](https://www.uaepropertyagents.com/glossary/handover)** and the estimated service charge, which is not binding.

Where English and Arabic versions differ, a UAE court will follow the Arabic. Pay a property lawyer to read the SPA before the reservation period expires; it costs little relative to the commitment.

## Related terms

- [Oqood](https://www.uaepropertyagents.com/glossary/oqood): Oqood is the Dubai Land Department's interim register for off-plan sales: it records the buyer's rights during construction, before a title deed can be issued.
- [Payment plan](https://www.uaepropertyagents.com/glossary/payment-plan): A payment plan is the developer's schedule of instalments for an off-plan home, usually a deposit, stage payments during construction and a balance at handover.
- [Reservation fee / booking deposit](https://www.uaepropertyagents.com/glossary/reservation-fee): A reservation fee or booking deposit is the first payment made to a developer to take a specific off-plan unit off the market while the contract is prepared.
- [Handover](https://www.uaepropertyagents.com/glossary/handover): Handover is the point at which a finished off-plan home passes from the developer to the buyer, once the final instalment and handover fees are paid.
- [Assignment / resale before handover](https://www.uaepropertyagents.com/glossary/assignment): An assignment is the sale of an off-plan purchase contract to a new buyer before the property is completed, with the developer's consent.

## In depth

- [Buying off-plan property in the UAE: how it works and how buyers are protected](https://www.uaepropertyagents.com/guides/buying-off-plan-in-the-uae)


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Source page: https://www.uaepropertyagents.com/glossary/spa. Published by UAE Property Agents, Omnia Capital Group. You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting.