The Ultimate Guide to Buying and Selling Off-Plan Property in UAE: Steps, Parties & Documents

Buying and selling off-plan property in the UAE can be a lucrative investment opportunity, but it involves a structured process with multiple steps, parties, and essential documents. Understanding this process ensures a smooth transaction and safeguards your interests.

What is an Off-Plan Property?

An off-plan property refers to a real estate unit that is purchased before its construction is completed. These properties are typically offered by developers at competitive prices, making them attractive to investors and end-users.

Steps Involved in Buying an Off-Plan Property in UAE

1. Research and Selection

Before committing to an off-plan purchase, conduct thorough research on the developer’s reputation, past projects, and payment plans. Ensure the developer is registered with the Dubai Land Department (DLD) and the project is approved by the Real Estate Regulatory Agency (RERA). Dexpo Home Real Estate can assist you in finding the best off-plan properties tailored to your investment goals.

2. Reservation / Booking Form

Once you select a property, you must sign a reservation/booking form and pay a booking fee (typically 3-10% of the property value, depending upon the developer of the project/property). This step secures the property under your name.

3. Making the Down Payment

Buyers must pay a down payment, usually 20% of the total property price, in accordance with the developer’s payment plan.

4. Signing the Sales Purchase Agreement (SPA)

The Sales Purchase Agreement (SPA) is a legally binding contract between the buyer and the developer. It includes project details, completion date, payment terms, and penalties for delays or default.

5. Registration with DLD

The property must be registered with the Dubai Land Department (DLD) through the Oqood system. Buyers need to pay the 4% registration fee and administrative charges.

6. Progressive Installments

Off-plan properties come with structured installment plans that are linked to construction milestones. Payments are made directly to the developer’s escrow account, ensuring the funds are used for project completion.

7. Completion and Handover

Upon project completion, the developer issues a handover notice. Buyers must conduct a final inspection to ensure the unit meets contractual specifications before taking possession.

Steps Involved in Selling an Off-Plan Property in UAE

1. Checking Transferability

Some off-plan properties have transfer restrictions before completion. Check with the developer if the unit can be resold and if there are any fees associated.

3. Contract A

Broker shall prepare the contract A, and it’ll be signed by the Seller.

2. Finding a Buyer

Work with a real estate agent or list your property on leading UAE property portals to attract potential buyers. Dexpo Home Real Estate provides expert assistance in connecting sellers with the right buyers efficiently.

4. Contract B

Buyer will sign the contract B with the Seller.

5. Signing a Memorandum of Understanding (MOU) (Contract F)

Once a buyer is found, both parties sign an MOU that outlines the terms of sale, price, and payment structure.

6. Developer NOC and DLD Transfer

The seller must obtain a No Objection Certificate (NOC) from the developer to confirm all dues are cleared. After obtaining the NOC, the ownership transfer takes place at the Dubai Land Department.

7. Final Payment and Handover

Once the new buyer completes the payment, ownership is transferred, and the seller exits the transaction, The final payment and Handover shall be done at the Trustee Office.

Key Parties Involved in Buying and Selling Off-Plan Property

1. Buyer: The individual or entity purchasing the off-plan property.
2. Seller: The individual selling an off-plan property before its completion.
3. Developer: The real estate company responsible for construction and project completion.
4. Dubai Land Department (DLD): The governing authority that regulates and registers real estate transactions.
5. Real Estate Regulatory Agency (RERA): Ensures compliance and protects investors.
6. Real Estate Agents: Professionals who facilitate buying and selling transactions.

Essential Documents Required

For Buying an Off-Plan Property:

• Passport Copy
• Emirates ID (For UAE residents)
• Sales Purchase Agreement (SPA)
• Payment Receipts
• Oqood Certificate (Proof of property registration)
• Mortgage Pre-Approval (If applicable)

For Selling an Off-Plan Property:

• Original SPA
• NOC from the Developer
• Buyer’s Passport & Emirates ID
• Memorandum of Understanding (MOU) / Contract F
• DLD Transfer Documents

Legal Considerations & Precautions

• Verify Developer Credentials: Ensure the developer is RERA-approved.
• Understand Payment Plans: Be aware of installment obligations.
• Check Transfer Rules: Some projects restrict resale before completion.
• Use Registered Agents: Work with RERA-certified brokers for safe transactions.
• Know Your Rights: Review UAE real estate laws to protect your investment.

Conclusion

Investing in off-plan property in the UAE can be highly rewarding when done correctly. By following the proper steps, understanding the roles of different parties, and securing the necessary documents, both buyers and sellers can navigate the transaction seamlessly. For expert real estate guidance, contact Dexpo Home Real Estate today!

**key Notes: –

• Buyer must have paid 40% payment before selling
• Must have pre-title deed
• Must provide his/her passport or emirate ID, along with the Phone Number, Registered Email and address.
• Buyer must pay 4% DLD, and Aqood fee AED 5850/-, Knowledge fee AED 20, Innovation Fee AED 20 at trustee office.