What does the property purchase process in Dubai look like?

Buying Property from a Developer in Dubai - Step by Step

1. We present the latest proposals from developers.

   • Evaluate your capital and your investment plan.
   • Prepare basic documents: valid passport, proof of address.

2. Project Selection

   • We work only with the best developers in Dubai who have a minimum of 20 completed investments behind them. This guarantees that investments are always handed over on schedule.
   • We approach each client individually. We learn about their needs and requirements regarding the investment. We work according to budgets, expectations, and requirements.

3. Unit Reservation (Booking / Reservation)

   • Express your intent to purchase to an authorized seller/developer and pay the booking fee - usually about 5-10% of the value (in some projects 10-20%). You will receive a reservation confirmation.
   • For investments that are yet to be released, EOI (Expression of Interest) is required - which is a small, fully refundable deposit if an apartment is not selected from the developer. If the selection is accepted, the EOI sum will be deducted from the booking fee.

4. Preliminary Agreement - MOU / SPA (Sales & Purchase Agreement)

   • After reservation, an MOU / Form F (more common in secondary sales) or a Sales & Purchase Agreement (SPA) is signed with the developer. The contract includes the price, payment schedule, handover date, penalties, and handover conditions.

5. Payment Security - Escrow and Trust Account

   • For off-plan transactions, the buyer's payments go into the project's escrow account in accordance with the law (Law No. 8/2007). This protects buyers' funds and prevents the developer from freely using the money without construction progress.
   • The law also provides for safeguards (e.g., retention of approx. 5% after completion for the claims period).

6. Transaction Registration - Oqood (off-plan) / Sales Registration (ready)

   • Off-plan: the developer registers the agreement in the DLD Oqood system (this is the official registration of the pre-handover agreement).
   • Ready: after signing the agreement, the sale is registered with the DLD and the Title Deed is issued. Registration and issuance of documents are done through DLD systems (Dubai REST / Real Estate Trustee Office).

7. Payments according to Schedule

   • You pay according to the SPA schedule (construction stages or post-handover). Payments formally go to the account indicated by the developer and are visible in confirmations.
   • The developer is obliged to report progress and allow inspection before handover. Typical payment schemes: 10-20% booking, the rest in installments or 20/80, 50/50, post-handover, etc.

8. Preparation for Handover - Inspection and 'Snag List'

   • Before handing over the keys, a technical inspection is performed. A snag list is drawn up - the developer is obliged to remove the defects. Law and practice provide for a period of liability for defects (retention/warranty).

9. NOC, Fees, and Title Transfer

   • Before transferring ownership, it is necessary to obtain an NOC (No Objection Certificate) from the developer - this confirms no outstanding debts (service charges, fees, etc.) and allows the transfer.
   • The buyer pays DLD registration fees - transfer/registration fee ~4% of the transaction value (plus administrative fees) and possible mortgage registration costs. After payment, the DLD will issue the Title Deed to the buyer.

10. After the Transaction: Owner Obligations and Property Management

    • After obtaining the Title Deed, you register any lease agreements (Ejari) and pay service charges (building maintenance/common services).
    • The DLD publishes a Service-Charge Index, which can be used for calculations.