Legal Checklist Before Buying an Off-Plan Property in Dubai (2025 Guide)
Jul 25, 2025
4 minutes read
Investing in an off-plan property in Dubai offers exciting potential for capital appreciation, flexible payment plans, and the chance to own a home in one of the world’s most vibrant cities. However, purchasing a property that is not yet constructed carries a level of risk. That’s why having a comprehensive legal checklist is not just smart, it's essential.
In this guide, we’ll walk you through the complete legal checklist before buying an off-plan property in Dubai to ensure your investment is secure, compliant, and hassle-free.
1. Verify Developer’s Registration with RERA (Dubai Land Department)
The first and most critical step is to ensure that the developer is registered with the Real Estate Regulatory Agency (RERA). You can verify this on the Dubai Land Department (DLD) website or through the Dubai REST App.
Why it matters:
Only developers registered with RERA are legally allowed to sell off-plan properties. This ensures they meet the minimum legal and financial requirements.
Tip: Request the developer’s RERA license number and validate it yourself.
2. Check Project Approval and Escrow Account Registration
Each off-plan project must be:
- Approved by DLD
- Registered under an Escrow Account regulated by the UAE Central Bank
Why it matters:
Your payments should go directly into the project’s escrow account, not the developer’s operational account. This protects your money and ensures it is used only for project construction.
How to verify:
Ask for the Project Number and check it on the Dubai REST App.
3. Review the Sales and Purchase Agreement (SPA)
The SPA is a binding legal contract between the buyer and developer. Key elements to review include:
- Property specifications (size, layout, floor)
- Total price and payment schedule
- Completion and handover date
- Penalties for delay
- Termination and refund clauses
Why it matters:
A detailed SPA protects your rights. Avoid vague clauses or missing terms that may harm you later.
Tip: Hire a property lawyer to review the SPA before signing.
4. Understand the DLD Registration Fees
Buyers must pay 4% of the property value as a DLD registration fee. In some projects, developers offer to cover this fee as part of a promotion.
Why it matters:
Knowing your legal financial obligations upfront avoids surprises later.
Tip: Always ask if the DLD fee is included or excluded in the advertised price.
5. Check for a No Objection Certificate (NOC) on the Land
The land on which the project is being developed must be approved for sale and construction by Dubai Municipality and other authorities.
Why it matters:
Without a valid NOC, construction may be delayed or halted.
Tip: Ask the developer for land ownership proof and NOC copy.
6. Verify the Payment Plan Structure
Most off-plan projects offer flexible plans, such as:
- 10% booking
- 40% during construction
- 50% on handover or post-handover
Ensure the schedule aligns with:
- Project milestones
- Your financial capacity
Why it matters:
An uneven or unrealistic plan could affect your cash flow or expose you to penalties.
Tip: Get the payment plan in writing as part of the SPA.
7. Confirm Handover Timeline and Compensation for Delay
Delays in off-plan projects are not uncommon. The SPA should include:
- Estimated handover date
- Permissible grace period (usually 6–12 months)
- Compensation clause (e.g., penalty per delayed month)
Why it matters:
You need legal grounds to claim a refund or penalty if the developer fails to deliver.
Tip: Choose developers with a strong track record of on-time delivery.
8. Understand Cancellation Terms and Exit Options
In case you need to cancel the purchase:
- How much of your payment is refundable?
- Are there penalties or administrative fees?
- Can you transfer the contract to another buyer?
Why it matters:
Life situations change. Having a clean exit strategy prevents financial loss.
Tip: Always get the cancellation terms in writing.
9. Know the Developer’s Dispute Resolution Process
In case of disagreement or dispute, the developer may have an internal resolution team. Otherwise, you may have to escalate to:
- RERA
- Dubai Courts
- Arbitration (if mentioned in the SPA)
Why it matters:
Understanding the legal route helps you act quickly in case of a dispute.
Tip: Take screenshots and keep a written record of all developer communications.
10. Check for Any Existing Liens or Mortgages on the Project
Sometimes, developers fund construction via loans or mortgages. You should check that:
- Your unit is not under any third-party financial obligation
Why it matters:
A lien or legal hold can delay your title deed or handover process.
Tip: Request written confirmation from the developer or DLD.
11. Understand Service Charges and Maintenance Fees
Developers may charge:
- Annual service fees (AED/sq. ft.)
- Sinking fund for future repairs
Why it matters:
These are recurring legal obligations post-handover that affect ROI.
Tip: Request an estimate and check if it is pre-approved by RERA.
12. Clarify Title Deed Issuance Timeline
Once the property is completed and all payments are cleared, the DLD issues a title deed. Make sure the SPA includes:
- Expected title deed issuance timeframe
- Conditions that must be met
Why it matters:
You can’t legally sell, rent, or refinance the property without the title deed.
13. Golden Visa Eligibility Check
As of 2025, purchasing a property worth AED 2 million or more can make you eligible for the 10-year UAE Golden Visa.
Why it matters:
This is a major benefit for international buyers.
Tip: Ask the developer if their projects meet visa criteria and what documents are needed.
Conclusion
Buying an off-plan property in Dubai can be a rewarding investment, but it requires careful legal due diligence. Use this checklist as your go-to guide before signing any contracts or making payments.
Quick Recap:
- Verify developer and project registration
- Review the SPA in detail
- Check escrow, payment plan, and handover terms
- Understand exit, dispute, and visa policies
- Consult a property lawyer when in doubt
By ticking all these legal boxes, you can confidently move forward with your off-plan investment in Dubai.
Looking to invest in off-plan property in Dubai?
At 11Prop, we offer full legal guidance, curated projects, and payment plans tailored to your goals.
Contact us now to get a personalized consultation.
