When you buy off-plan, you pay for a home that does not exist yet. Dubai has specific rules for where that money goes and how the sale is recorded. Here is how they work, based on the law and the Dubai Land Department’s published process.
Project escrow accounts
Under Law No. 8 of 2007, developers selling off-plan must open a project-specific escrow account with an accredited escrow agent. Buyers’ payments go into that account, and it is dedicated exclusively to building that project (Article 9). The funds cannot be attached by the developer’s creditors.
- Retention: 5% is retained after completion, for one year after the units are registered (Article 14).
- If a project stalls: the escrow agent, after consulting DLD, acts to protect depositors (Article 15).
Oqood registration
Off-plan (initial) sales are registered on DLD’s Oqood portal in the provisional register. Developer and purchaser both sign the Sale and Purchase Agreement, and it must be registered within 90 days of signing. The DLD fee of 4% is due at registration, and the registration confirmation is emailed to the purchaser.
What this does not cover
Escrow reduces developer risk but does not remove it. It does not guarantee a handover date, a resale price or a rental return. That is why the developer’s track record and the terms of the SPA still matter.
A simple checklist
- Pay only into the escrow account named for the project, never to a personal account.
- Make sure you receive the Oqood registration confirmation within 90 days of signing.
- Keep copies of the SPA, receipts and payment schedule.
- Read the SPA clauses on handover dates and what happens if they change.
Sources: Law No. 8 of 2007 (Dubai Legislation Portal); Dubai Land Department. See also payment plans and protection and the buying process.
Checked on 12 October 2026. General information only, not financial, legal or tax advice. Prices, availability, fees and rules change: confirm the details for your purchase with us before acting. Not legal advice.
