A large share of property purchases in Dubai are "off-plan": the buyer purchases the unit from the developer before construction ends and pays in instalments. This differs from buying a completed property, and its registration and the protection of the buyer's money follow special rules. This article is based on three Dubai Land Department service pages ("Register Project", "Request to register the initial sale" and "Escrow Account activation") and Article 3 of the "Regulations Regarding Mortgage Loans" in the Central Bank of the UAE rulebook; these sources were checked on 25 October 2026, and the Land Department website was updated on 14 October 2026.
Project registration and the escrow account
The Dubai Land Department says the developer must register the project before off-plan sales and open an escrow account for sales before completion. The project registration conditions:
| Condition | What the Land Department says |
|---|---|
| Land | In freehold or long-term lease areas |
| Land ownership | A title deed is required; a preliminary sale certificate is not accepted |
| Building permits | Final building permits from the competent authorities and approved plans |
| Master developer consent | A no-objection certificate for the project name, off-plan sale and marketing |
| Guarantee | 30%: either 30% of construction completed, a 30% bank guarantee, or a cash deposit |
| Escrow account | The developer asks the Account Custodian to open the escrow account |
| Project registration fee | AED 150,000 plus AED 10 + 10 Knowledge and Innovation |
Release of money from the escrow account
The "Escrow Account activation" page says the developer must meet the project's financial risk standards to draw from the escrow account. If a bank guarantee exists, the escrow account is activated up to its value for construction works until 20% completion, based on a recent technical report issued by the Land Department that is not older than 3 months. After 20%, activation is based on the percentage of construction completed. So the developer's drawings from the escrow account happen gradually, in step with construction progress, not all at once.
Initial sale registration (Oqood)
After the contract is signed, the developer registers the unit in the Land Department's "initial register". This is done through the Land Department's developer portal, called "Oqood":
| Subject | What the Land Department says |
|---|---|
| Who applies | The developer |
| Signatures | Both the developer and the buyer sign the sale and purchase contract |
| Deadline | The contract must be registered in the initial register within 90 days of signing |
| Documents for an individual buyer | A copy of the contract, a copy of a valid Emirates ID, and for non-residents a copy of a valid passport |
| Minor buyer | The guardian signs and a copy of the guardian's passport or ID is attached |
| Output | An electronic initial registration certificate emailed to the buyer |
| Time | One business day |
Initial sale registration fees
| Line | Amount |
|---|---|
| Seller's share | 2% of the sale value |
| Buyer's share | 2% of the sale value |
| Knowledge fee | AED 10 |
| Innovation fee | AED 10 |
| Developer's registration fee on the Oqood portal | AED 1,000 per initial sale |
Who in practice bears each party's 2% share is set by your contract; check it in the contract before signing.
Buying off-plan with a loan
Article 3 of the Central Bank of the UAE's mortgage loan regulations (Circular 31 of 2013, in force) says that given the long-term nature of construction and the higher completion risk, the maximum loan-to-value ratio for off-plan property is 50%, regardless of purpose, value or category of buyer. The Land Department also requires an electronic no-objection certificate from the developer to register a mortgage on an off-plan property, and gives the service partner fee for it as AED 5,000 plus value added tax. The article "Buying property in Dubai with a mortgage" explains the full loan rules.
Two examples
These examples are hypothetical and only put the official fees and ratios above side by side.
**Example 1: an off-plan apartment of AED 1.2 million.**
| Line | Calculation | Amount |
|---|---|---|
| Buyer's share of the registration fee | 2% × 1,200,000 | AED 24,000 |
| Seller's share of the registration fee | 2% × 1,200,000 | AED 24,000 |
| Knowledge and Innovation | 10 + 10 | AED 20 |
| Total registration fee | — | AED 48,020 |
If the contract places the whole registration fee on the buyer, the buyer's share becomes AED 48,020; check this in the contract.
**Example 2: the same apartment with a loan.** With the 50% cap, the maximum loan is AED 600,000, and at least AED 600,000 must come from the buyer's own money, plus the registration fee and the mortgage registration fee. The Central Bank's other caps, a loan of up to 7 times annual income for expatriates and a debt burden of up to 50% of income, must also be met.
Practical points
- Before paying, ask the Land Department whether the project is registered and has an escrow account, and check which account your payment goes to.
- Get the initial registration certificate from the Land Department; the deadline to register the contract is 90 days.
- Make each party's share of the 2 + 2% fee clear in the contract.
- If you buy with a loan, plan the payments around the 50% cap.
- For completed property, see the article "Buying property in Dubai as a foreigner"; for bringing money in, read the article "Entering the UAE with cash, gold and gifts".
Royal Golden does not give legal, real estate or financial advice. This article is general information; the decision on any registration rests with the Dubai Land Department and on any loan with the lending bank.
Sources
- Dubai Land Department, Register Project — https://dubailand.gov.ae/en/eservices/register-project/ (checked on 25 October 2026)
- Dubai Land Department, Request to register the initial sale — https://dubailand.gov.ae/en/eservices/request-to-register-the-initial-sale/ (checked on 25 October 2026)
- Dubai Land Department, Escrow Account activation — https://dubailand.gov.ae/en/eservices/request-to-activate-an-escrow-account/ (checked on 25 October 2026)
- Dubai Land Department, Mortgage registration application — https://dubailand.gov.ae/en/eservices/request-for-mortgage-registration/ (checked on 25 October 2026)
- Central Bank of the UAE, Rulebook, Regulations Regarding Mortgage Loans, Article 3: Important Ratios — https://rulebook.centralbank.ae/en/rulebook/article-3-important-ratios (checked on 25 October 2026)