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1. Verify that the project and developer are authorised
Do not rely solely on a brochure, sales presentation or agent’s statement that a development is “DLD registered.” Ask for the project’s current DLD registration details, the legal identity of the developer and evidence of the relevant approvals. Check the official record for the specific project immediately before signing and again before making a major payment, because project status and administrative procedures can change.
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DLD’s project-registration service identifies core documents and prerequisites such as the land-ownership deed, approved project plans and, where applicable, a no-objection certificate from a main developer. Those documents establish that the development has an identified site, approved plans and the permissions needed for registration. Keep copies of the documents supplied to you, not just a project number.
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- Record the project’s registered name exactly as it appears in DLD records.
- Match the contracting developer’s legal name, licence details and signatory authority to the SPA.
- Confirm that the land, master development and building approvals correspond to the project being sold.
- Ask whether any master-developer consent or no-objection certificate is required and whether it has been obtained.
2. Make the SPA, plans and specifications describe the same property
Read the SPA together with every schedule, floor plan, site plan, specification sheet and parking or storage allocation. The contract should identify the project, building or tower, unit number, floor, layout, stated area and permitted use. It should also say precisely what is included: parking bays, storage rooms, balconies, appliances, finishes, fixtures and access to promised facilities.
Resolve conflicts between documents
Marketing material is often less precise than a contractual specification. Require the SPA to state which document controls if a plan, sales illustration, written specification and marketing description differ. A vague “subject to change” sentence should not silently override a detailed schedule that you relied on when agreeing the price. Ask for a marked, dated set of annexes and ensure the version numbers or dates appear in the SPA.
Check area and permitted variation language
The applicable statute addresses area changes after delivery. If the delivered area is greater, the developer cannot use that increase to claim a higher price. If the area is smaller, compensation is required unless the decrease is inconsequential. This rule does not answer every practical question: the SPA may define the measurement method, exclusions, tolerance or procedure for measuring the finished unit. Have those provisions reviewed rather than assuming that any difference automatically produces a refund.
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- Check balcony, terrace, common-area and shaft exclusions in the measurement definition.
- Verify that the parking space number and ownership or use right are written into the contract.
- List the finish level and included equipment; “as per show unit” is not a sufficient specification by itself.
3. Reconcile the price, instalments and payment account
Build your own payment schedule from the SPA and compare it line by line with the official project and unit information. Confirm the total purchase price, currency, reservation or down payment, each instalment amount, due date and any construction milestone that triggers payment. Identify late-payment interest or charges, administration fees, registration costs and every other sum the buyer may owe.
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Construction-linked instalments
If an instalment depends on a construction percentage, the SPA should explain how that percentage is certified, by whom and what evidence the buyer receives. Do not treat an agent’s informal progress update as a contractual trigger. Ask whether the buyer can defer payment while a certificate or notice is disputed and whether a missed milestone changes the due date.
Pay only to the project escrow account
Dubai’s escrow law requires covered off-plan payments to be deposited into a project account dedicated exclusively to construction, with separate accounts for separate projects. The escrow structure protects the designated funds, but it is not a promise that construction will finish on time or that the investment will gain value.
Payment instructions in the SPA should name the project escrow account and identify the account holder. Independently confirm the bank details through a trusted channel before every transfer, particularly after receiving an email announcing a changed account. Retain transfer receipts, bank confirmations and written payment acknowledgements with the executed SPA.
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| Payment check | What the SPA should state | Buyer’s evidence to retain |
|---|---|---|
| Total consideration | Price, currency and whether taxes or charges are included | Signed price page and payment ledger |
| Instalments | Amount, due date and any construction or document condition | Schedule, notices and milestone certificates |
| Additional sums | Late charges, administration, registration and utility-related fees | Fee schedule and receipts |
| Destination | Project-specific escrow account and approved payment method | Verified bank details and transfer confirmation |
4. Confirm DLD provisional (initial) registration
DLD describes initial registration as registering off-plan sales contracts and other legal actions before transfer to the real-estate registry. Its FAQ explains that it covers off-plan purchases, as well as ready properties for which an initial sale certificate is issued. For a buyer, provisional registration creates an official record linking the signed transaction to the unit while the final title transfer has not yet occurred.
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DLD’s current initial-sale service terms state: “The sale and purchase contract shall be registered in the provisional register within 90 days from the date of signing the contract.” The service lists a signed SPA and purchaser identification documents among the required materials and identifies a provisional-registration e-certificate as the issued document.
Practical registration sequence
- Sign the SPA only after all negotiated annexes and the unit details are complete.
- Ask the developer to submit the initial-sale registration and provide the submission reference.
- Obtain the provisional-registration e-certificate or other official confirmation and check that the project, unit, buyer and price are correct.
- Keep the certificate with the executed SPA and payment evidence; do not assume registration occurred because an application was promised.
- Recheck the live DLD service requirements, fees and document list before filing, since online procedures can change.
If the 90-day period is approaching without confirmation, send a written request to the developer and preserve the response. A UAE-qualified adviser can assess the contractual and statutory consequences of a missed registration obligation in your circumstances.
5. Read default, notice and termination clauses against the project’s completion status
A missed instalment does not produce one universal penalty. Dubai’s interim-register law, as amended, applies different remedies depending on construction progress and the facts surrounding the default. The SPA may add notice, cure and evidence requirements, but it cannot safely be understood without checking the current consolidated law.
| Project status described in the 2020 amendment | Statutory consequence stated for specified purchaser-default cases |
|---|---|
| Completion above 80% | After the specified notice and official documentation process, the developer may maintain the agreement and claim the balance, request a DLD public auction, or terminate and retain up to 40% of the unit value. |
| Completion between 60% and 80% | The cited amendment allows termination and retention of up to 40% of the unit value. |
| Work commenced and completion below 60% | The cited amendment allows termination and retention of up to 25% of the unit value. |
These are statutory limits for specified situations, not an automatic entitlement in every dispute. The law separately addresses qualifying cases in which work has not commenced for reasons beyond the developer’s control and cases where RERA cancels a project. Ask a UAE-qualified lawyer to review the current consolidated text, the project’s documented completion level and the exact notices before advising you to stop payment or accept a termination statement.
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An earlier 2008 text refers to a 30-day notice and deduction of up to 30% of payments made. Later amendments revise the default framework. Do not quote that earlier rule as the current answer without reconciling the amendments and the facts of your SPA.
Notice mechanics to locate in the SPA
- Permitted delivery methods, addresses and email requirements.
- Length of any cure period and the date from which it runs.
- Documents that prove a default or construction percentage.
- Whether termination is immediate, conditional on a DLD process or subject to a court order.
- How refunds, deductions, resale or auction proceeds are calculated and paid.
6. Test completion, handover and post-handover obligations
Locate the contractual completion date and any grace period. The SPA should define what “completion” means, what certificates or approvals demonstrate it, and how the developer gives a handover notice. A date in a brochure is not a substitute for the completion and notice provisions in the signed contract.
Handover and defects
Check the inspection, snagging and defects procedure: notice periods, access for inspection, the developer’s repair timetable, consequences of refusing an incomplete handover and the documents delivered at handover. Confirm whether you may appoint an inspector and how disagreements about defects are escalated.
Costs after handover
Identify when service charges begin, how they are calculated and which common facilities or utilities they cover. Check meter deposits, connection charges, cooling or district-service costs and the point at which those costs shift to the buyer. The available official material does not establish one universal service-charge formula or delay remedy, so the SPA’s wording and the approved budget matter.
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Assignment before completion
Many buyers want the option to sell or assign before handover. Read restrictions, minimum payments, developer consent requirements, assignment fees and any prohibition on marketing the unit before a specified milestone. Treat a resale strategy as unavailable unless the SPA clearly permits it.
7. Understand cancellation, escrow protection and disputes
Dubai’s escrow law requires the escrow agent, in an emergency where a project is not completed, after consultation with DLD, to take measures intended to protect depositors and ensure completion or refund. The 2020 amendment states that when RERA cancels a project through a final reasoned decision, the developer must refund purchaser payments under the escrow-law procedures. These mechanisms are process-based; they do not guarantee an immediate refund or remove the need to document your claim.
DLD’s FAQ says DLD cannot terminate a developer-investor contract at the investor’s request. It describes DLD’s role as reconciliation and directs an investor seeking termination to the competent real-estate court. Your SPA should therefore be read for its governing law, notice addresses, dispute forum, escalation steps, language of proceedings and allocation of legal costs.
Escrow release and the five-percent retention
Law No. 8 of 2007 provides for 5% of the total escrow-account value to be retained after the completion certificate and released one year after units are registered to purchasers. This is a statutory escrow figure, not a general buyer guarantee or a personal reserve that you can claim on demand. Ask how the provision interacts with the project’s completion certificate and unit registration rather than treating it as an automatic defect payment.
8. A document pack to assemble before signing
Use one folder, with the signed version and dated evidence for each item. This makes later registration, payment reconciliation or a dispute substantially easier.
- Current DLD project registration details and approval evidence.
- Developer identity, licence information and authorised signatory proof.
- SPA, all schedules, approved plans, specifications and parking or storage allocation.
- Price and instalment ledger, including every fee and payment condition.
- Verified escrow-account details and transfer receipts.
- Provisional-registration submission reference and e-certificate.
- Construction-progress evidence used to trigger an instalment or invoke a default remedy.
- Completion, handover, snagging, service-charge and assignment clauses.
- Written notices, acknowledgements and correspondence about changes or delays.
When professional review is worth the cost
Independent review is particularly important when the project is delayed, the developer proposes a substituted annex, a payment account changes, an instalment is disputed, or termination could expose a large portion of the unit value. Choose a suitably qualified UAE real-estate lawyer or conveyancing professional who can check the current consolidated legislation, DLD procedure and the Arabic or bilingual version of your SPA. Ask for written comments on the clauses that control payment, registration, default, refund, handover and dispute forum, rather than a general assurance that the contract is standard.
The safest decision rule is simple: do not sign until the project record, unit description, payment destination, provisional-registration route and exit consequences are all documented in a form you can verify. If any one of those elements remains unclear, the financial risk belongs with the buyer unless the contract is revised.
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