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Legal View on Off Plan Property

Inquiry on Legalities of Off-Plan Property Purchase in Dubai

Posted by Content Writer on August 24, 2023

I’m considering purchasing an off-plan property from a developer in Dubai. What legal steps should I follow before finalizing the purchase agreement? If the property isn’t delivered by the agreed-upon date, can I legally ask the developer to cancel the agreement? Can the property be registered under my name, my wife’s, and our three children? I’d appreciate your guidance.

To address your concerns:

1. While there aren’t specific legal steps mandated for buying an off-plan property in Dubai, it’s prudent for potential buyers to:
– Ensure the developer has secured all necessary approvals from relevant authorities before construction begins.
– Investigate the developer’s reputation, focusing on their history of timely project completions.
– Confirm the developer, the real estate project, and the escrow account are all registered with the Dubai Land Department (DLD) and the Real Estate Regulatory Authority (RERA).
– Ensure your sale and purchase agreement clearly defines terms, conditions, and the rights and responsibilities of both parties.

2. You can incorporate a clause in your purchase agreement that allows for its termination if the property isn’t delivered by the specified date. According to Article 525 of the Civil Transaction Law, delivery should align with the nature of the item and the terms of the agreement or prevailing customs. Article 514 of the same law mandates that sellers provide the purchased item free of any third-party rights, unless otherwise agreed upon or specified by law.

3. Registering the property under multiple names, including yours, your wife’s, and your three children, is permissible. The law doesn’t restrict property ownership to a single individual.


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