7 rules of UAE law that matter when you buy off-plan, each quoted from the official text with a link. We include an article only after reading it in the official source. General information, not legal advice: ask a local lawyer about your contract.
Off-plan sellers in Dubai must have an escrow account for the project#
Escrow or protected account, Payment schedule
A developer that wants to sell units off-plan must apply to the Land Department to open an escrow account, and buyers' payments are deposited into an account opened in the name of the project. Pay only into the project's escrow account named in your contract, never to a personal or company operating account.
Any Developer who wishes to sell Units off-plan must submit to the Department a request to open an Escrow Account.
Dubai Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development, Articles 6 and 7. Dubai Legislation Portal (dlp.dubai.gov.ae), Government of Dubai.
Escrow money is only for building that project and is protected from the developer's creditors#
Escrow or protected account
Each project has its own escrow account, used only to build that project. The developer's creditors cannot seize the money in it.
An Escrow Account will be opened in the name of the project, and will be dedicated exclusively to the construction of that Real Estate Development project. No attachment may be imposed on the payments deposited in this account for the benefit of the creditors of the Developer.
Dubai Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development, Article 9. Dubai Legislation Portal (dlp.dubai.gov.ae), Government of Dubai.
5% of the escrow stays back for a year after units are registered#
Completion date, Payment schedule
When the developer gets the completion certificate, the escrow agent keeps 5% of the account and releases it one year after the units are registered to buyers. A contract that lets the developer take everything at handover is worth asking about.
An Escrow Agent must retain five percent (5%) of the total value of each Escrow Account once the Developer obtains the completion certificate. The retained amount will be released to the Developer one (1) year from the registration of Units in the name of purchasers.
Dubai Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development, Article 14. Dubai Legislation Portal (dlp.dubai.gov.ae), Government of Dubai.
If a project is not completed, the escrow agent must act to complete it or refund buyers#
Termination and refund, Delay penalty
If the project is not completed, the escrow agent, after consulting the Land Department, must take measures to protect depositors: either get the project completed or refund their payments.
In the event of any emergency situation where the Real Estate Development project is not completed, the Escrow Agent of that project must, after consultation with the Department, take the required measures to preserve the rights of depositors, and ensure that the Real Estate Development project is completed, or depositors are refunded their payments.
Dubai Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development, Article 15. Dubai Legislation Portal (dlp.dubai.gov.ae), Government of Dubai.
Off-plan advertising needs written permission from the Land Department#
Permits
A developer may not advertise off-plan units, or promote them at exhibitions, without written authorisation from the Land Department. Dubai property ads now carry a permit QR code you can check (see our permit QR check).
A Developer may not advertise in local or international media, and may not participate in local or international exhibitions to promote the sale of Units or Real Property off-plan, unless he obtains an authorisation in writing from the Department.
Dubai Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development, Article 5. Dubai Legislation Portal (dlp.dubai.gov.ae), Government of Dubai.
An off-plan sale must be entered in the Interim Property Register, or it is void#
Title type
Every off-plan sale must be entered in the Land Department's Interim Property Register. A sale that is not registered there is void. Ask for proof of registration of your unit.
Any disposition that occurs in respect of any Real Property Unit sold off-plan will be entered in the Interim Property Register, and any sale or any other legal disposition that transfers or restricts ownership or any ancillary rights will be void unless entered in that Register.
Dubai Law No. (13) of 2008 Regulating the Interim Property Register, Article 3(1). Dubai Legislation Portal (dlp.dubai.gov.ae), Government of Dubai.
No off-plan sale before the developer holds the land and the approvals#
Permits, Title type
A developer may not start a project or sell units off-plan before taking possession of the land and getting the required approvals.
No Master Developer or Sub-developer may commence a project or dispose of its Real Property Units by way of Off-plan Sale before taking possession of the land on which the project will be implemented and obtaining the required approvals from the Competent Entities in the Emirate.
Dubai Law No. (13) of 2008 Regulating the Interim Property Register, Article 4. Dubai Legislation Portal (dlp.dubai.gov.ae), Government of Dubai.
Used by the late-handover calculator and the contract law notes. See also how to check a project in UAE.
Did we misread a rule? Send documents and we add your reply or correct the record: right of reply · corrections. Every figure here is computed from the open dataset (/data/bali-cases.json, CC BY 4.0) and changes when the data changes.