CONTEXT
Purchasing off-plan property in Dubai carries specific legal risks: construction delays measured in years, delivery of property that does not match the agreed specifications, and — in the most serious cases — developer insolvency while the purchaser continues to make payments without receiving anything. UAE and Dubai law provide dedicated protective mechanisms for purchasers, but their effectiveness depends heavily on whether the correct procedures were followed at the time of purchase and whether action is taken promptly.
LEGAL BASIS
Dubai Law No. 13 of 2008 on Interim Real Estate Register (as amended)
Dubai Law No. 8 of 2007 on Escrow Accounts for Real Estate Developments
PURCHASER PROTECTION MECHANISMS
Oqood registration: All off-plan sale and purchase agreements (SPAs) must be registered in the Interim Real Estate Register (Oqood) administered by the Dubai Land Department (DLD). Unregistered contracts have significantly reduced legal protection.
Escrow account: All purchaser payments must be deposited into a dedicated project escrow account and used exclusively for const...