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How an off-plan purchase works
An off-plan sale is a contract with a developer for a unit that does not yet exist or is not yet complete. The typical sequence is as follows.
- Expression of interest (EOI) and launch. For sought-after projects the developer may collect refundable EOI deposits before launch and allocate units on launch day. An EOI is not a contract to sell.
- Booking form and reservation. The buyer signs a booking or reservation form, pays an initial deposit and receives a unit allocation. Read the terms: some developers treat part of the booking deposit as non-refundable if the buyer withdraws.
- Sale and Purchase Agreement (SPA). The SPA is the main contract. It sets out the specification, payment schedule, anticipated completion date, permitted grace period for delay and each party's remedies on default, and is the document to have reviewed by a lawyer before signing.
- Oqood registration. Off-plan sales are recorded on the DLD's interim real estate register, known as Oqood, under Law No. 13 of 2008. The buyer pays the DLD registration fee of 4% of the purchase price plus an administrative charge and receives an Oqood certificate evidencing the contractual interest. Some developers offer to absorb part or all of this fee as a promotion; if so, it should be written into the SPA.
- Payments into escrow. Under Law No. 8 of 2007, every off-plan project must have a dedicated escrow account with an approved bank. Buyer instalments are paid into that account rather than to the developer's general account, and funds are released to the developer against certified construction progress. Confirm the escrow account number with the DLD project record before paying and pay only into that account.
- Instalments and post-handover plans. Payment plans are percentages of the price falling due on dates or construction milestones. Some developers offer post-handover plans, under which part of the price is paid after the keys are handed over; title is then generally transferred only once the final instalment is paid.
- Completion, snagging and handover. On completion the developer obtains the building completion certificate and arranges inspections. The buyer or an appointed surveyor records defects (snagging), the developer rectifies them and the unit is handed over. Title is then registered at the DLD and a title deed issued in the buyer's name.
How a ready purchase works
A ready purchase is a transaction between two private parties, usually with a broker on each side, and completes at a DLD-registered trustee office.
- Offer and Form F. Once terms are agreed, the parties sign the DLD's standard sale contract, Form F (commonly called the MOU). It records the price, the deposit, the completion date, who pays which fees and the consequences of default. The buyer customarily pays a deposit, often around 10%, as a manager's cheque held by the buyer's broker until transfer.
- Mortgage steps, if any. A financed buyer obtains a valuation and final loan approval. A seller with a mortgage requests a liability letter from the lender, and the loan is settled from the sale proceeds or by the buyer's bank at transfer.
- No-objection certificate (NOC). The seller applies to the developer or master community for an NOC confirming that service charges are settled and there is no objection to transfer. The developer charges a fee for this.
- Transfer. At the trustee office the buyer pays the price by manager's cheque (or bank transfer where the office accepts it), the DLD fee of 4% plus AED 580 and the trustee fee of AED 4,000 plus VAT, and a new title deed is issued in the buyer's name, normally the same day.
The step-by-step mechanics and full cost breakdown are in our guides to buying property in Dubai as a foreigner and Dubai property purchase costs.
Off-plan and ready compared
| Off-plan | Ready (secondary) | |
|---|---|---|
| What you buy | A contractual right to a unit to be delivered | An existing property with a title deed |
| Contract | Developer's SPA, drafted by the developer | DLD Form F between buyer and seller |
| Registration | Oqood (interim register), then title deed on completion | Title deed issued at transfer |
| Payment | Instalments over construction and sometimes after handover | Full price at transfer (cash or mortgage) |
| Where the money goes | Project escrow account, released against progress | Directly to the seller at the trustee office |
| Inspection | Show unit, drawings and specification; snagging at handover | Physical viewing and independent survey before contract |
| Occupancy or income | Only after completion | Immediate, or on expiry of an existing tenancy |
| Financing | Limited; lenders finance a lower share of off-plan purchases and often only late in construction | Standard mortgage products for residents and non-residents |
| Certainty of product | Specification, view and finish may vary from marketing material | What you see is what you buy |
| Principal risk | Delay, specification change, developer default, market change before handover | Hidden defects, arrears, undisclosed encumbrances |
Risks and protections
Off-plan. The buyer is exposed to delay, specification changes, the developer's financial position and market movements before handover. Dubai's framework mitigates these risks rather than removing them:
- Every project must be registered with RERA and have an escrow account. The project number, escrow account, developer and completion percentage are recorded by the DLD and can be checked through its digital services before you sign.
- If a buyer defaults, the developer must follow the DLD's procedure before cancelling, and the buyer's entitlement to a refund depends on how far construction has progressed. The scale is set by law; as of 2026, confirm the current position with the DLD before relying on it.
- Developer track record matters more than any regulation. Look at projects delivered, delays incurred, how snagging was handled and whether earlier buyers received their title deeds promptly.
Ready. The risks are more familiar: hidden defects, service charge arrears, an undisclosed mortgage, an existing tenancy, or a seller who is not the registered owner. The protections are a title check at the DLD, the developer's NOC, an independent survey, a check of the Ejari tenancy register and identity verification of the seller by the broker and the trustee.
Which suits an investor and which an end-user
Off-plan tends to suit buyers who want a new-build specification that is not available in the secondary market, who prefer to spread payment over construction, who do not need the property for several years and who are comfortable with developer and timing risk. In Dubai's prime segment this includes branded and waterfront residences from developers such as Meraas and Omniyat, where the finished product may be the only way to acquire a particular building or position.
Ready tends to suit buyers who intend to occupy soon, who want to inspect exactly what they are buying, who are financing with a mortgage, or who want rental income from day one. For ultra-prime villas on Palm Jumeirah, Jumeirah Bay Island and in Emirates Hills, the secondary market is where most of the supply exists. An example of a ready waterfront villa currently marketed by us is Villa Amalfi on Jumeirah Bay.
Bonum Realty advises on both; where a project is off-plan we confirm RERA registration, the escrow account and the developer's authorisation before presenting it. Enquiries: info@bonumrealty.com or enquiry form.