Buying Off-Plan in Dubai: Oqood, Escrow and the Fees You Pay

Buying off-plan in Dubai means paying for a home before it is built. The law protects that money in three ways: your sale must be registered with the Dubai Land Department (DLD), your payments must go into a project escrow account, and the developer must refund buyers if the project is cancelled. This guide explains each step in plain terms, with the official source for every rule, so you know what to check before you pay.

What is Oqood?

Oqood is DLD's system for registering off-plan sales. Every off-plan sale in Dubai must be entered in the Interim Property Register, and a sale that is not registered there is void under Law No. 13 of 2008, Article 3. The same law says a developer cannot sell off-plan before it has possession of the land, and a contract signed before the project is approved is null and void.

The developer registers the sale, not the buyer. DLD's "Request to register the initial sale" service runs through the Real Estate Developers Portal, which DLD calls Oqood, and covers off-plan units that have not been fully paid. Once registered, DLD sends a provisional registration e-certificate by email.

For an individual buyer, DLD lists these documents: the signed sale and purchase contract, a valid Emirates ID, and a passport for non-residents. Companies also need a trade licence, a legally translated Memorandum of Association, a shareholder certificate and, where used, a power of attorney.

What fees do you pay?

DLD's registration fee for an off-plan sale is 4% of the price. DLD's service page splits it as 2% for the buyer and 2% for the seller, and adds a knowledge fee of AED 10 and an innovation fee of AED 10. A DLD notice from May 2021 says buyers settle the registration fee through the developer, and that developers must pay it to DLD within 60 days. Who pays in your deal is set in the sale contract, so read that clause before you sign.

If you want an independent view of how far a project has progressed, DLD offers a technical report on the completion percentage for about AED 15,000.

How escrow protects your payments

Escrow is governed by Law No. 8 of 2007. Under it:

• Payments from off-plan buyers go into an escrow account opened with an escrow agent approved by DLD (Articles 7 and 10).
• Each project has its own account, and the money can only be used to build that project. The developer's creditors cannot seize it (Article 9).
• After the completion certificate is issued, the escrow agent holds back 5%, released one year after the units are registered in buyers' names (Article 14).
• Misusing buyer funds can lead to jail and a fine of at least AED 100,000 (Article 16).

RERA's Escrow Account Division audits and monitors these accounts. The practical rule for buyers is simple: pay only into the project's escrow account, never into a personal or company account.

How to check a project before you pay

DLD gives buyers two free tools. The Project Status Enquiry lets you search by project name or number and shows the project's status, registration, developer and escrow bank. The Dubai REST app shows the completion percentage, site photos, the escrow account number and the payments due on your unit.

What if a project is cancelled or delayed?

If RERA cancels a project, the developer must refund all payments made by buyers (Law No. 19 of 2017, Article 11). If a project stalls, the escrow agent works with DLD to either complete it or refund depositors (Law No. 8 of 2007, Article 15). DLD's guidance says that when a project is liquidated, the developer is asked to return buyers' money within 60 days.

Disputes over unfinished and cancelled projects go to a Special Tribunal at DLD (Decree No. 33 of 2020). It can order refunds from the escrow account, and claims there carry no court fees. DLD itself cannot cancel a contract between a buyer and a developer; that is a matter for the real estate court.

The rules are different when the buyer stops paying. DLD gives the buyer 30 days' notice, after which the developer may keep part of what was paid. Under the amended Article 11 of Law No. 13 of 2008, that is up to 40% of the unit value if the project is more than 60% built, and up to 25% if it is less than 60% built.

Checklist before you sign

• The developer and the project are registered with RERA, and the project is approved for off-plan sale.
• You know the completion percentage, from Dubai REST or the Project Status Enquiry.
• You have the escrow account number and the escrow agent's name, and every payment goes only to that account.
• The unit has no mortgage or other charge against it.
• Your broker is RERA-registered and the DLD broker appointment form is signed.
• The project's adverts carry a DLD advertising permit.
• The developer registers your sale in Oqood within the legal deadline, and you receive the e-certificate.
• You understand the defect liability: 10 years for structural defects and 1 year for minor defects from the completion certificate (Law No. 27 of 2007).

Frequently asked questions

Who registers an off-plan sale in Oqood? The developer, through DLD's Real Estate Developers Portal. The buyer receives the provisional registration certificate by email.

How much is the DLD fee on an off-plan purchase? 4% of the price, plus AED 20 in knowledge and innovation fees. The sale contract sets who pays it.

Is my money safe if the developer goes bankrupt? Payments held in the project escrow account can only be used for that project and cannot be seized by the developer's creditors. If the project is cancelled, the law requires a refund to buyers.

Can I sell before handover? Yes, but you need a No Objection Certificate from the developer.

Sources: Dubai Land Department e-services and FAQs (dubailand.gov.ae); Dubai Legislation Portal (dlp.dubai.gov.ae): Law No. 8 of 2007, Law No. 13 of 2008, Law No. 19 of 2017, Decree No. 33 of 2020; DLD "Know Your Rights" guide. Read on 13 October 2026. The English law texts are translations; the Arabic original prevails. This article is general information, not legal advice.

Platinum Square advisors can check a project's registration and escrow details with you before you book. Contact us for current off-plan options.