Buying steps for off-plan property from a developer
The process for purchasing an off-plan property from a developer involves several distinct steps:
1. Inspect Property Plans or Visit the Site
Review the property's plans and visit the construction site to check progress. You may also see a show flat or show villa to get a sense of the finished product.
2. Confirm Project Registration with RERA
Ensure the project is registered with RERA (Real Estate Regulatory Agency). RERA mandates that developers must own 100% of the land and secure a bank guarantee for 20% of the project’s value or complete 20% of the construction before selling off-plan units. Deposits and payments must be made into a RERA-approved security account.
3. Submit Reservation/Application Form to the Developer
Complete the reservation or application form provided by the developer. This form will include the basic terms of the sale, payment plan, and your personal details (including a copy of your passport).
4. Select Your Unit
Choose the specific apartment or villa/townhouse you wish to purchase.
5. Make the Initial Deposit
Pay the initial deposit, which typically ranges from 5% to 30% of the purchase price. Subsequent payments are generally tied to construction milestones, though this can vary by developer and payment plan.
6. Obtain Initial Agreement of Sale (‘Oqood’)
Complete the registration process at the developer’s office. You will receive an initial agreement of sale, known as ‘oqood’. This document certifies ownership and may incur DLD fees, such as the 4% transfer fee and other administration costs.
Stay informed about the latest property rules and regulations in Dubai. Contact the Dubai Land Department (DLD) and RERA for the most current procedures. Both organizations are easily accessible via their websites, phone, or in person.
Sources Credited:
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