---
title: "Buying off-plan property in the UAE: how it works and how buyers are protected"
canonical: https://www.uaepropertyagents.com/guides/buying-off-plan-in-the-uae
markdown: https://www.uaepropertyagents.com/md/guides/buying-off-plan-in-the-uae.md
type: guide
description: "How off-plan purchases work in Dubai, Abu Dhabi and Ras Al Khaimah: escrow, Oqood, what you lose if you default, your rights on delay, resale and snagging."
published: 2026-11-12
updated: 2026-11-12
sources: 17
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."
---

# Buying off-plan property in the UAE: how it works and how buyers are protected

> How off-plan purchases work in Dubai, Abu Dhabi and Ras Al Khaimah: escrow, Oqood, what you lose if you default, your rights on delay, resale and snagging.

By Omnia's editorial team. Off-plan. Published 12 November 2026, last reviewed 12 November 2026.

## The short version

- Before paying, confirm three things on the regulator's own website: the project is registered, the developer is licensed, and there is a project escrow account.
- An off-plan sale in Dubai is void unless it is entered on the interim register (Oqood) within 90 days; hold the certificate before paying further instalments.
- If you stop paying, a Dubai developer can cancel after 30 days' notice and keep up to 25% of the price below 60% construction, or up to 40% above it.
- A late handover does not by itself let you cancel: your rights depend on the grace period and delay clauses in the contract, so read them before you sign.
- Developers stay liable for structural defects for 10 years and for fittings and installations for one year, in both Dubai and Abu Dhabi.

Buying off-plan means agreeing to buy a home that has not been built yet and paying for it in stages. In the UAE the buyer is protected by four mechanisms: the project must be registered with the regulator, your money must go into a project escrow account, your purchase must be entered on a government interim register, and the law limits what a developer can keep if the sale is cancelled. Those rules are real and enforced. They reduce the risk of fraud; they do not remove the risks of delay, default or a falling market. This guide explains each in turn for Dubai, with the Abu Dhabi and Ras Al Khaimah equivalents. It is general information, not legal advice.

## How does an off-plan purchase work?

1. **Reservation.** You sign a booking form and pay a deposit, commonly 10% to 20%.
2. **Registration fee.** In Dubai you pay the 4% Land Department fee plus AED 1,020 for registration; in Abu Dhabi the fee is 2%.
3. **Sale and purchase agreement (SPA).** The binding contract. It fixes the price, payment schedule, specification, completion date and what happens if either side fails.
4. **Interim registration.** The developer registers the sale: on Oqood in Dubai, on the Initial Real Estate Register in Abu Dhabi.
5. **Instalments.** Paid into the escrow account according to the plan. See [payment plans explained](https://www.uaepropertyagents.com/guides/off-plan-payment-plans-explained).
6. **Completion and handover.** You inspect, pay the balance and take the keys.
7. **Title deed.** The unit moves to the main register.

## The four protections, and what each one does

| Protection | Dubai | Abu Dhabi | What it stops |
|---|---|---|---|
| Project registration | Developer must hold the land and approvals before selling; contracts signed before approval are void (Law 13 of 2008, Articles 4 and 10) | Project approved and registered, land rights held, disclosure statement approved (Law 3 of 2015, Article 15) | Sales of projects that do not legally exist |
| Escrow account | All buyers' payments into a project account that creditors cannot attach (Law 8 of 2007) | Dedicated account; no withdrawals before 20% construction unless a bank guarantee is lodged | Your money funding another project or the developer's debts |
| Interim register | Oqood: a sale not registered is void (Law 13 of 2008, Article 3) | Initial Real Estate Register | The same unit being sold twice |
| Cancellation limits | Article 11, as amended in 2020 | Decision 165 of 2025 | A developer keeping everything you paid |

### Escrow: where your money goes

Under Dubai Law No. 8 of 2007 a developer selling off-plan must open an escrow account for that project with a bank accredited by the Land Department. Buyers' payments, and any project finance, go into it. A developer with several projects needs a separate account for each. The money is reserved for building that project, and when the building is finished the bank holds back 5% for a year after units are registered to buyers, as cover for defects. Misusing project funds carries imprisonment, a fine of at least AED 100,000, or both.

The practical rule that follows: **pay only to the account named in your SPA.** A request to pay a broker, a different company or an account abroad is a warning sign.

Abu Dhabi goes a step further on timing. Since the 2025 amendment, a developer cannot draw on escrow at all until 20% of construction is complete, unless the regulator approves an unconditional bank guarantee worth at least 20% of construction cost. Escrow money may not be used to pay for the land or brokers' commissions. Ras Al Khaimah's 2026 law requires the developer to fund at least 20% of construction cost itself.

## What should you check before you reserve?

- **Project status.** Dubai: the Land Department's Project Status Enquiry. Abu Dhabi: DARI shows registration, the escrow account number and the completion rate. Ras Al Khaimah: ask RAK Municipality's Real Estate Regulatory Department to confirm the off-plan sale permit.
- **Developer licence.** The Dubai Land Department publishes a list of licensed developers and of approved escrow trustees.
- **Advertising permit.** Dubai adverts need a Land Department permit (Trakheesi), which can be verified on its website. Abu Dhabi requires its own permit and broker licence.
- **Delivery record.** How late were the developer's last three projects. See our [developer pages](https://www.uaepropertyagents.com/developers).
- **Who is selling.** Check the broker on the regulator's licensed-broker list.
- **The full SPA.** Ask for it before paying the deposit, not after.

## Which SPA terms matter most?

- **Completion date and grace period.** Many Dubai contracts give the developer 6 to 12 months beyond the stated date before you gain any right to cancel. A contract with an "anticipated" date and an open-ended extension gives you very little.
- **Payment triggers.** Are instalments tied to dates or to construction milestones. Dubai's regulations treat a developer's refusal to link payments to construction milestones proposed by the regulator as a ground for termination, and Abu Dhabi's law lists it as a developer breach.
- **Default clause.** It cannot lawfully exceed the statutory caps below, but check what it says about interest and notice.
- **Specification and area.** In Dubai the developer cannot charge for extra area and must compensate for a shortfall unless it is insignificant. Abu Dhabi adjusts the price beyond a 5% variance and lets you rescind beyond 10%. Ras Al Khaimah's 2026 law requires compensation for a shortfall over 5%.
- **Resale before handover.** The percentage you must have paid and the fee.
- **Dispute forum.** Court or arbitration, and where.
- **Handover costs.** Service-charge advances, utility connections, any "handover fee".

## What happens if you stop paying?

This is where buyers lose the most money, so the detail matters.

### Dubai: Article 11

The developer must notify the Land Department, which serves you 30 days' written notice and may try to mediate. If you neither pay nor settle, the Department certifies the project's completion percentage and the developer's options depend on it.

| Construction progress | What the developer may do |
|---|---|
| Over 80% | Keep the contract, keep everything paid and claim the balance; or ask for the unit to be auctioned; or cancel and keep up to 40% of the price |
| 60% to 80% | Cancel and keep up to 40% of the price |
| Under 60%, work started | Cancel and keep up to 25% of the price |
| Not started for reasons outside the developer's control, or project cancelled by the regulator | Refund all payments |

Percentages are of the unit price in the SPA, not of what you have paid. Any refund is due within one year of cancellation or 60 days of the unit being resold, whichever is earlier. The rules apply to contracts signed before the amendment too, and they do not apply to sales of land.

**A conflict between sources.** The last row follows the 2020 text published on Dubai's legislation portal, which has no deduction where construction has not started. The earlier 2017 version let the developer keep up to 30% of the amounts paid in that case, and that figure is still quoted in 2026 by some lawyers and newspapers. We have followed the official 2020 text. If this situation applies to you, take legal advice on which version governs.

**Worked example.** You buy at AED 1.5 million and have paid 30%, AED 450,000, when you stop paying at 40% construction. The developer may keep up to 25% of the price, AED 375,000, and must refund AED 75,000. If instead you had paid 50%, AED 750,000, and defaulted at 70% construction, it could keep up to 40%, AED 600,000, and refund AED 150,000. These are ceilings, and developers sometimes settle for less.

### Abu Dhabi: Decision 165 of 2025

The notice period is longer, 60 days by notary or registered mail, and the deduction is fixed by a table: 10% of the contract value below 10% construction, 15% up to 30%, 25% up to 60%, 40% above that, and nothing if construction has not started for reasons outside the developer's control. The escrow trustee must pay your balance within 15 working days of your request. On the AED 1.5 million example, defaulting at 20% construction would cost AED 225,000 in Abu Dhabi against up to AED 375,000 in Dubai.

### Ras Al Khaimah: Law No. 10 of 2026

Thirty days' notice through the regulator, then up to 40% at 60% construction or more, 25% below that, and up to 20% where construction has not started. See [buying in Ras Al Khaimah](https://www.uaepropertyagents.com/guides/buying-property-in-ras-al-khaimah).

## What if the developer is late?

Delay is common. ValuStrat reported that about 33,000 homes had completed in Dubai by the end of September 2026, under a third of the number projected for the year.

Your position in Dubai:

- **Delay alone does not cancel the contract.** Lawyers are consistent on this. Start with the SPA's completion date, grace period and force majeure wording.
- **Statutory grounds to terminate** are listed in Article 20 of Executive Council Resolution No. 6 of 2010 and include a material departure from the agreed specification and a refusal to provide the final contract.
- **If the project is still active**, the Land Department will not cancel at your request. You would apply to the court, or to arbitration if the SPA says so.
- **If the regulator cancels the project**, the developer must refund all payments from escrow. Disputes over cancelled projects go to a special tribunal created by Decree No. 33 of 2020.
- **Do not stop paying in protest.** That can put you in default under Article 11 and hand the developer the stronger position. Write formally, ask for the completion percentage and revised date, and keep records.

Abu Dhabi's law is more specific. If construction has not started within six months, buyers holding 5% of the units can complain and the regulator may cancel the project and order refunds; a delay penalty applies once delivery is more than six months late.

## Can you sell before handover?

Yes, by assigning your contract, subject to the developer's consent.

- **The threshold.** Most SPAs require a set share of the price to be paid before the developer will issue a no-objection certificate. It is set by contract, not by law, and varies widely. Get it in writing before you reserve.
- **The fee.** Dubai Law No. 13 of 2008 bars developers from charging fees on a resale other than administrative costs approved by the Land Department. In Abu Dhabi, Resolution No. 183 of 2017, published by the Abu Dhabi Real Estate Centre, caps developer administration fees at AED 5,000.
- **The tax on your buyer.** The new buyer pays registration again: 4% in Dubai, 2% in Abu Dhabi. That cost comes out of the price they are willing to pay you.
- **The market.** Dubai off-plan registrations in the third quarter of 2026 were 45.7% lower than a year earlier. A plan that depends on selling before the handover payment falls due is fragile.

The steps, the paperwork and a worked example of the arithmetic are in our guide to [selling off-plan property before handover](https://www.uaepropertyagents.com/guides/selling-off-plan-property-before-handover).

## Snagging, handover and defects

When the building has its completion certificate you will be invited to inspect. Commission an independent snagging inspection, list every defect in writing and agree a date for repairs before signing the handover documents. From handover you are liable for service charges whether or not you move in: see [service charges in Dubai](https://www.uaepropertyagents.com/guides/service-charges-in-dubai).

Your statutory cover after that:

| | Dubai (Law 6 of 2019, Article 40) | Abu Dhabi (Law 3 of 2015, Article 73) |
|---|---|---|
| Structural defects | 10 years from the completion certificate | 10 years from the completion certificate |
| Installations: mechanical, electrical, plumbing | 1 year from handover of the unit | 1 year from the completion certificate |
| Can the SPA reduce it? | No: any agreement to the contrary is void | Set by statute; the text we reviewed does not address contracting out |

In Dubai the developer must file for title deeds within 60 days of the completion certificate. In Abu Dhabi moving the unit to the main register costs AED 1,000.

The full completion process, from the handover notice to the title deed, is in our guide to [off-plan handover and snagging](https://www.uaepropertyagents.com/guides/off-plan-handover-and-snagging).

## Is off-plan right for you?

Off-plan suits a buyer with reliable income or cash for every instalment, a horizon beyond the handover date, and no need for rent in the meantime. It does not suit someone counting on a mortgage they have not been offered or on a resale to fund the final payment. For a side-by-side view read [off-plan vs ready property](https://www.uaepropertyagents.com/guides/off-plan-vs-ready-property), then model the instalments in the [payment plan calculator](https://www.uaepropertyagents.com/tools/payment-plan-calculator).

## Calculator

Run your own numbers with the [payment plan calculator](https://www.uaepropertyagents.com/tools/payment-plan-calculator).

## Questions and answers

### Is it safe to buy off-plan property in Dubai?

It is regulated, which is not the same as risk-free. Dubai law requires the developer to hold the land, register the project, open a project escrow account for buyers' money and register every sale on the interim register. Those rules protect you against a developer spending your money elsewhere or selling a unit twice. They do not protect you against delay, a falling market, or losing up to 40% of the price if you cannot keep up the instalments.

### What happens if I cannot pay my off-plan instalments in Dubai?

The developer notifies the Dubai Land Department, which gives you 30 days' written notice to pay or settle. After that the developer may cancel without a court order. Below 60% construction it may keep up to 25% of the unit's price; between 60% and 80%, up to 40%; above 80% it can also keep everything paid and claim the balance, or ask for the unit to be auctioned. Any refund is due within a year of cancellation or 60 days of the unit being resold, whichever is sooner.

### Can I cancel an off-plan contract if the developer is late?

Not automatically. A missed completion date does not end the contract. Check the completion date, the grace period (commonly 6 to 12 months) and the force majeure clause. If the project is still active, the Dubai Land Department will not cancel at a buyer's request and you may have to apply to the court. If the regulator formally cancels the project, the developer must refund all payments through the escrow procedures.

### Can I sell an off-plan property before handover?

Usually, but only once you have paid the share of the price your contract requires and the developer has issued a no-objection certificate. The threshold is contractual and varies by developer and project. Dubai law bars developers from charging fees on a resale beyond administrative costs approved by the Land Department, and Abu Dhabi caps such fees at AED 5,000 under Resolution No. 183 of 2017. Your buyer pays the registration fee again: 4% in Dubai, 2% in Abu Dhabi.

### What is Oqood?

Oqood is the Dubai Land Department's interim register for off-plan sales, and the name of the portal developers use to file them. The developer must register the contract within 90 days of signing; the Land Department then emails the buyer a provisional registration certificate. Under Dubai Law No. 13 of 2008 an off-plan sale that is not on this register is void. At completion the unit moves to the main register and a title deed is issued.

## Sources

Facts on this page were last checked against these sources on 12 November 2026.

- [Dubai Law No. 8 of 2007 Concerning Escrow Accounts for Real Estate Development (Dubai Legislation Portal)](https://dlp.dubai.gov.ae/Legislation%20Reference/2007/Law%20No.%20(8)%20of%202007.html)
- [Dubai Law No. 13 of 2008 Regulating the Interim Real Property Register (Dubai Legislation Portal)](https://dlp.dubai.gov.ae/Legislation%20Reference/2008/Law%20No.%20(13)%20of%202008.html)
- [Dubai Law No. 19 of 2020 amending Article 11 of Law No. 13 of 2008 (Dubai Legislation Portal)](https://dlp.dubai.gov.ae/Legislation%20Reference/2020/Law%20No.%20(19)%20of%202020%20Amending%20Law%20No.%20(13)%20of%202008%20Regulating%20the%20Interim%20Real%20Property%20Register%20in%20the%20Emirate%20of%20Dubai.html)
- [Explanatory Notes on Article 11 of Law No. 19 of 2017 (Dubai Legislation Portal)](https://dlp.dubai.gov.ae/Legislation%20Reference/2018/Explanatory%20Notes%20on%20Article%20%2811%29%20of%20Law%20No.%20%2819%29%20of%202017.html)
- [Dubai Law No. 6 of 2019 Concerning Ownership of Jointly Owned Real Property (Dubai Legislation Portal)](https://dlp.dubai.gov.ae/Legislation%20Reference/2019/Law%20No.%20(6)%20of%202019%20Concerning%20Ownership%20of%20Jointly%20Owned%20Real%20Property%20in%20the%20Emirate%20of%20Dubai.html)
- [Dubai Land Department: Request to register the initial sale (Oqood)](https://dubailand.gov.ae/en/eservices/request-to-register-the-initial-sale/)
- [Dubai Land Department: all services (project status enquiry, licensed developers, escrow trustees, permit verification)](https://dubailand.gov.ae/en/eservices/all-services?id=19503)
- [Abu Dhabi Real Estate Centre: rules and regulations (Law 3 of 2015, Law 2 of 2025, Decisions 24, 25 and 165 of 2025, Decision 247 of 2015, and Resolution No. 183 of 2017, Article 2, the cap on developer administration fees)](https://adrec.gov.ae/en/rules_and_regulations/regulations)
- [Abu Dhabi Real Estate Centre: FAQs (DARI, escrow)](https://adrec.gov.ae/en/faqs)
- [Abu Dhabi Media Office: DMT issues regulatory decisions for the real estate sector (27 March 2026)](https://www.mediaoffice.abudhabi/en/infrastructure/department-of-municipalities-and-transport-issues-regulatory-decisions-to-enhance-transparency-and-governance-in-real-estate-sector-in-abu-dhabi/)
- [A&O Shearman: Abu Dhabi's new escrow and off-plan sales regime (8 September 2026)](https://www.aoshearman.com/en/insights/abu-dhabis-new-escrow-and-off-plan-sales-regime-from-momentum-to-regulated-delivery)
- [Trowers & Hamlins: Four key decisions reshaping Abu Dhabi's real estate market in 2026 (22 April 2026)](https://www.trowers.com/insights/four-key-decisions-reshaping-abu-dhabis-real-estate-market-in-2026)
- [ADG Legal via Legal 500: RAK's new real estate development law, Law No. 10 of 2026 (26 October 2026)](https://www.legal500.com/intelligence/united-arab-emirates/real-estate-and-construction/raks-new-real-estate-development-law-what-developers-with-active-projects-should-review)
- [Awatif Mohammad Shoqi Advocates via Legal 500: Your rights when a developer delays handover (18 September 2026)](https://www.legal500.com/intelligence/united-arab-emirates/real-estate-and-construction/off-plan-property-dispute-dubai-your-rights-when-a-developer-delays-handover)
- [ATB Legal: Pulling back from an off-plan SPA in the UAE (2 April 2026)](https://atblegal.com/?p=11145)
- [Khaleej Times: Missed off-plan payments in Dubai, what your developer can legally do (10 October 2026)](https://www.khaleejtimes.com/uae/missed-off-plan-payments-dubai-developer-legally-do)
- [Arabian Post: ValuStrat Q3 2026 Dubai review (29 October 2026)](https://thearabianpost.com/dubai-residential-resales-climb-as-off-plan-transactions-contract/)

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Source page: https://www.uaepropertyagents.com/guides/buying-off-plan-in-the-uae. 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.