Published on and written by Cyril Jarnias
Buying property in Dubai can be an excellent deal – whether to live there, diversify your assets, or take advantage of a dynamic rental market. But behind the glass towers and promising yields, the legal and financial risk is very real, especially for a foreign buyer unfamiliar with local rules.
This 25-point checklist covers everything to verify before signing a real estate contract in Dubai, based on the legal framework of the Dubai Land Department (DLD), RERA, and local courts.
No unnecessary jargon: the goal is to give you a practical guide, whether you are scouting locally or buying remotely.
—
1. Verify that the property is located in a freehold zone open to foreigners
In Dubai, foreigners can own property in freehold, but not everywhere. The principle is simple: for a non-Emirati (and non-GCC national), a freehold purchase is only possible in zones officially designated by regulation.
Practically speaking, if the property is outside these zones, the freehold transaction will be flatly refused by the Dubai Land Department. You then risk losing time, money in fees, or even committing to a legally shaky project.
More than fifty zones are officially open to freehold purchase by foreigners in Dubai.
Before even discussing price, you must therefore:
– verify that the neighborhood is listed in the DLD’s official register of freehold zones;
– confirm the type of right offered: freehold or long-term leasehold (up to 99 years).
A purchase outside these perimeters, for a foreigner, cannot be registered as freehold with the DLD, even if an agent assures you otherwise.
—
2. Clearly understand the difference between freehold and leasehold
Two major legal options exist today for a foreign buyer in Dubai: freehold in designated zones, or a leasehold real right (often up to 99 years) elsewhere.
With freehold, you own without time limit the dwelling and a share of the land. You can sell, rent, mortgage, pass it on to your heirs, without paying ground rent to an “ultimate owner.” Your name appears on an official title deed issued by the DLD.
In a leasehold contract, you buy an occupancy right for a fixed term (e.g., 25, 50, or 99 years). You can use, rent, or resell this right for the remaining period, but the land remains the property of the freeholder (often a major developer or public entity). The right expires at the end of the term, unless renewal is provided for.
Understanding this from the start is essential: it determines the long-term resale value, the ability to transfer the property, and even access to certain residency visas tied to property ownership, which are generally associated with freehold properties meeting specific value thresholds.
—
3. Confirm the legality of the developer and the project via the DLD and RERA
Whether you are buying off-plan or in a recently completed building, the developer’s solidity is a key factor. Dubai’s market is regulated, but fake developers and dubious projects still exist, especially off-plan.
Before signing anything:
– verify that the developer is registered as a “Licensed Developer” in the DLD’s registers;
– check that their status is “active,” not “suspended” or “expired”;
– confirm that the project itself is duly registered with RERA, with an official number and a dedicated escrow account.
Use the Dubai REST app (official DLD) or the site dubailand.gov.ae to check essential public information: developer name, license number, status, project, escrow account, and percentage of completion.
If the developer does not appear, or if the project does not exist in this database, consider it a major red flag. An off-plan project that is not registered and lacks a validated escrow account violates the law, and your payments then receive none of the protections provided by local law.
—
4. Verify the existence and compliance of the escrow account
Any serious off-plan sale in Dubai relies on a regulated escrow account, opened with an approved bank and specifically linked to a given project. This is an obligation under local law (notably Law No. 8 of 2007) and reinforced by subsequent circulars.
Purpose: to prevent developers from using your money for anything other than construction and land payment.
Before paying a single dirham on an off-plan project, you must:
You need to get the escrow account number and bank name, verify via Dubai REST or DLD services that this account is indeed registered for that project, then compare the account number stated in the contract (SPA), in the Oqood registration, and in the DLD project sheet: they must match.
The developer can only access the deposited funds based on construction milestones verified by engineers appointed by RERA. A portion of the total amount (5% of the project) must also remain blocked for one year after handover to cover potential defects.
Any request for payment to a personal account, a company not listed as the escrow bank, or a “temporary” account must be considered a huge red flag.
—
5. Check the developer’s reputation and track record
Beyond regulatory compliance, it is prudent to assess the developer’s history:
– meeting completion deadlines;
– quality of finishes and after-sales service;
– volume and nature of past disputes (delays, construction defects, conflicts with buyers).
You can:
To assess the reliability of a property developer in Dubai, perform these three key checks.
Visit projects already delivered by the same developer, talk to residents, and observe the condition of common areas.
Check comments on Property Finder, Bayut, and Dubizzle, while taking them with a grain of salt to avoid bias.
Search, via judicial channels, whether the developer has been subject to sanctions from the DLD or RERA.
A developer with a history of massive delays, poor quality, or repeated litigation is more likely to expose you to problems down the line, even if the legal framework is protective.
—
6. Ensure the property or project is registered (DLD Title Deed or Oqood)
In Dubai, two main types of proof of “ownership” coexist depending on the project’s progress:
– the definitive title deed (Title Deed), issued by the DLD and serving as proof of freehold or leasehold ownership of a completed property;
– the Oqood certificate, which registers off-plan purchases in an interim registry as units are sold before delivery.
For an already delivered property, you must imperatively verify the title with the DLD, via the title verification service on the website or via the Dubai REST app. The check is quick, free, and shows:
– whether the title is valid;
– whether there is an existing mortgage;
– whether there is a seizure, judicial freeze, or other encumbrances.
For an off-plan purchase, registration in Oqood is equally central: a project sold off-plan without Oqood registration is legally fragile, and the buyer ends up with a simple private contract that is largely unenforceable in case of a dispute.
—
Sometimes buyers discover, after the fact, that:
– the property was already mortgaged to a bank;
– a judicial seizure encumbered the title;
– or that competing rights existed (usufruct, inheritance dispute, etc.).
To avoid these unpleasant surprises, it is essential to:
Request a detailed report from the DLD on the property (via REST or a trustee center), check for the absence of a mortgage, judicial annotation, or restriction, and in the case of a mortgage, clarify in writing with the seller and the bank the terms and timeline for its release.
A purchase in a non-freehold zone by a foreigner is also a serious mistake: the DLD will simply refuse registration, leaving the buyer in a very delicate position.
—
8. Understand the real transaction costs (beyond the listed price)
The listed price is never the final cost. In Dubai, you should budget on average 7 to 10% in additional fees relative to the purchase price, depending on whether you pay cash or via a loan.
The main items can be summarized as follows:
| Cost Item | Indicative Amount (2026) |
|---|---|
| DLD transfer fee | 4% of the purchase price (often fully paid by the buyer) |
| Agent commission (resale) | 2% + 5% VAT on the commission |
| Trustee / registration fee | 2,000 to 4,000 AED + VAT, depending on property value |
| Title deed issuance | ~250–580 AED (depending on property type and ancillary fees) |
| Mortgage registration | 0.25% of the loan amount + ~290 AED |
| Bank processing fee | 0.5–1% of the loan amount + 5% VAT |
| Bank property valuation | 2,500–3,500 AED + 5% VAT |
| Developer NOC (resale) | 500–5,000 AED |
| DEWA security deposit | 2,000 AED (apartment) / 4,000 AED (villa) |
To this, add the annual service charges, often between 10 and 30 AED per square foot per year, sometimes more in luxury towers. On a 1,000-square-foot apartment with charges at 20 AED/sq ft, that already amounts to 20,000 AED per year.
Not factoring in ancillary costs (purchase fees of 7 to 10% and recurring charges) into your investment model is a common mistake. Many buyers focus only on the price per square meter and the gross yield, overlooking this essential financial friction.
—
Three types of costs regularly surprise foreign buyers:
The 4% DLD transfer fee can reach 40,000 AED on a property worth one million dirhams.
These items are not optional; they are structural for your budget. It is therefore essential to:
– ask to see the official service charge rate registered with RERA (via the Mollak system) for the building;
– request a statement of charges for the last 2–3 years, especially for a resale property;
– budget everything into your financial plan.
—
10. Beware of “cash” or non-escrow payments
Requests for “under-the-table” payments are not the norm, but they still exist:
– a seller who offers to lower the official price on the contract in exchange for a cash supplement to reduce the 4% DLD fee;
– a developer or intermediary who asks to pay part of the amount into a personal account or a company not listed as the project’s escrow account.
Accepting this type of arrangement exposes you to several major risks:
Suspicion of money laundering and non-compliance with local law; inability to prove the actual payment if the official contract does not reflect the exact price; in case of a dispute, courts rely on registered documents, not your WhatsApp exchanges or verbal agreements.
Legal, civil, and practical risks
In summary: no significant payment should go to an account that is neither the project’s escrow account (for off-plan) nor the official channel managed by the trustee / DLD for a resale.
—
11. Distinguish real contracts from simple informal “agreements”
The culture of instant messaging creates a dangerous illusion: many buyers think that a WhatsApp exchange or an email constitutes a commitment equivalent to a registered contract. This is not the case.
Dubai’s legal system gives much greater weight to:
List of required formal documents and registrations
Contracts duly signed and registered with the DLD: SPA, MOU, Oqood, etc.
Title deeds and official documents attesting ownership.
Official registrations: Oqood for off-plan, Ejari for leases, etc.
An “SPA” that is not registered, an MOU not validated via official forms (Form F, etc.), or a verbal agreement will have very limited weight in a dispute. If the other party disappears or contests, you will struggle to assert your rights.
—
12. Verify the agent and broker in RERA registers
Real estate in Dubai is heavily regulated, including for agents. Yet, “gray brokers” (unlicensed intermediaries) continue to operate, especially via social media, with bait listings designed to obtain quick deposits.
Before working with an agent:
To verify a real estate broker in Dubai, ask for their RERA broker number, check it on the Dubai REST app or via the DLD portal, and ensure the agency itself is licensed.
A transaction conducted by an unauthorized intermediary can be invalidated, or at least leave you without recourse if something goes wrong. The most common frauds involve fake listings, fake agent identities, and payment redirections to wrong accounts.
—
13. Protect your off-plan purchase: Oqood, deposits, and delay risks
Off-plan purchases dominate Dubai’s residential market. They are heavily regulated, but carry specific risks:
– delayed delivery;
– difference between advertised specifications and the final product;
– some buyers wanting to withdraw for market reasons.
The regulation is clear:
The registration fee for each sale in the Oqood system is 4% of the property value, plus fixed fees.
In the event of a project canceled by the developer, the buyer is entitled to a full refund of all amounts paid from the escrow account. If, however, the buyer wishes to cancel due to delays, their rights will depend on the SPA clauses and RERA regulations. Hence the importance of having a lawyer review this contract before signing.
—
14. Carefully analyze the Sales & Purchase Agreement (SPA)
The standard SPA issued by a developer is not a “neutral” document. It is generally drafted to their advantage, and notably includes:
– tolerance clauses for specification changes;
– extendable delivery timelines in case of force majeure or special circumstances;
– restrictive terms for cancellation requests from the buyer’s side.
It is strongly recommended to have this contract reviewed by a lawyer specializing in Dubai real estate, especially for a significant purchase, as the cost of legal advice remains negligible compared to the risks involved.
Your legal counsel will be able to: analyze contracts, draft legal documents, advise on legal matters, and represent clients before courts.
– check penalties for developer delays;
– analyze provisions on quality, warranties, and the defect liability period;
– review early resale (assignment) terms if you plan to sell before completion.
—
15. Consider force majeure: a very limited concept
Many buyers hope that political or economic events, or personal difficulties, will allow them to back out of a purchase commitment by invoking force majeure. Under UAE law, this concept is applied very restrictively.
Force majeure requires an objective impossibility to perform an obligation, not simply a cost increase or adverse change. A market downturn, lower rents, or an uncertain context is not enough to void your payments.
In most cases:
– the buyer can only withdraw at the reservation stage, or if a financing condition has clearly not been met;
– once the SPA is signed and registered, withdrawal options are limited and regulated.
It is therefore essential to sign only after having fully assessed the long-term financial implications, regardless of market cycles.
—
16. Check the financing structure and the strength of your repayment plan
Whether you pay cash or via a loan, your payment obligations remain fully enforceable, even if the market turns. Banks do not reduce your monthly payments because prices fall, and developers do not cancel remaining payments because activity slows.
You must therefore:
Simulate conservative scenarios for rents and vacancy rates, check your ability to repay even with a 15–20% drop in rents, and include annual charges and maintenance costs.
In the event of payment default, consequences may include:
– contractual penalties;
– termination of the agreement with retention of a significant portion of amounts paid (off-plan);
– bank lawsuits and foreclosure on the property in case of a mortgage.
—
17. Conduct a price check using official DLD data
One of the most costly mistakes is to buy without checking comparable transaction prices. In Dubai, this information is readily accessible via the Dubai REST app, which lists actual transactions registered with the DLD.
It is not uncommon to see:
In the same building, comparable units (floor, view, size) can show price differences of 15 to 25%. Moreover, during marketing events, launch prices are often inflated compared to actual sales.
Before signing:
– check the latest transactions for the same type of unit in the building and the neighborhood;
– compare the proposed price pro-rata for actual size and view;
– do not rely solely on listed prices in ads, which are “asking” prices, not “paid” prices.
—
18. Examine the service charge history and any arrears
Service charges are a frequent point of friction, especially in resales. Many buyers do not know that unpaid service charges follow the property, not the owner: the Owners’ Association can enforce a lien on the property, even after a change of ownership.
Before finalizing a resale, you must therefore:
Demand a ‘service charge clearance’ certificate from the OA or manager stating that no amount is due, request a detailed statement of charges paid and approved works, and check their level and history in Mollak.
Without this check, you may end up paying several years of arrears for expenses decided before you arrived.
—
19. Prepare all mandatory documents for the purchase and transfer
The transaction itself requires a set of documents without which the transfer cannot be registered:
To finalize a transaction, you will need: a valid passport (non-residents) or Emirates ID (residents), the final SPA and amendments, proof of payment (receipts or escrow statement for off-plan), the developer NOC (resale in a managed project), certificates of no outstanding service charges, and an appointment at a trustee center with all documents.
The absence of even one of these items can significantly delay finalization, or even cause the deal to fall through if contractual deadlines are not met.
—
20. Anticipate the residency visa linked to property ownership
Dubai uses the property-based residency card to attract investors. The framework has evolved recently, with:
The minimum share of co-ownership in AED required for a residency visa via a jointly owned property.
These programs change regularly in detail, and income, savings, or age criteria may also apply depending on the case (notably for retirees). It is therefore prudent to:
– check directly on the DLD website and relevant authorities the conditions in effect at the time of your project;
– do not base your entire purchase decision solely on a visa promise without verifying the texts.
—
21. Physically inspect the property: the snagging phase before handover
For a new property, especially off-plan, handover should never be limited to a signature and key handover. A detailed inspection (snagging) must be carried out before officially accepting the home.
This inspection notably covers:
Detailed checks include: walls and ceilings (cracks, paint defects, dampness), floors (tile alignment, grout, hollow tiles, scratches), doors and windows (alignment, locks, sealing, scratches on glass), kitchen (cabinets, countertops, built-in appliances), bathrooms (waterproofing, water pressure, shower slope, grout, ventilation), visible plumbing and water heater (no leaks, good drainage), electricity (outlets, breakers, lighting, grounding), air conditioning (airflow, temperature, condensation, noise), and balcony (railings, drainage, waterproofing).
Ideally, this inspection is carried out by a professional who will produce a numbered PDF report, with photos, which you will submit officially to the developer.
—
22. Structure the defect reporting and the liability period
Once snagging is done:
– all defects must be recorded in a report with photos and precise location;
– this report must be officially sent to the developer, who must acknowledge receipt in writing;
– a correction schedule must be agreed upon, then verified via a follow-up visit.
The Defects Liability Period (DLP) starts from the date of the building’s completion certificate, not the key handover. Do not sign without a clear written record, or you risk letting your rights expire.
Keep carefully:
– the snagging report;
– written exchanges about defect corrections;
– proof of corrections carried out.
—
23. Set up an appropriate tax strategy (especially through a company)
Taxation in Dubai is attractive (no income tax on rents, no property tax, no capital gains), but this does not mean there are no tax issues for a foreign investor, notably:
In the UAE, corporate tax can be 9% for certain structures. Double tax treaties exist between the UAE and the investor’s country of residence. Financial transparency rules apply, such as CRS and foreign account declarations.
In some cases, structuring the investment through a local company, especially in a free zone, may be relevant to optimize the overall tax framework and succession. In others, personal name acquisition remains the best option.
Specialist advice is essential, especially if you already own other significant assets or if you invest through a foreign entity.
—
24. Understand your exit limitations in case of a change of plans
Many investors enter the market thinking they will sell “easily” if circumstances change. Yet typical mistakes include:
– buying off-plan thinking you can resell quickly during construction, while the SPA heavily regulates assignments before delivery;
– counting on a force majeure clause to disengage in case of price drops or personal difficulties.
The reality:
Resale before completion often requires 30–40% of the price already paid and the formal consent of the developer (NOC). In case of developer default (delay, cancellation), termination is possible but can be lengthy. A market drop of 10–20% does not legally justify withdrawal.
You should therefore consider that, once committed, you are obligated to honor the payment plan, except for very specific events provided for in the contract and the law.
—
25. Engage a local lawyer and document every step
Last point, but probably the most structuring of this entire checklist: do not skimp on experienced local legal counsel. A lawyer who knows Dubai practice can:
Using a specialized lawyer allows you to verify the compliance of the project, developer, and escrow accounts, review and negotiate SPA or MOU clauses, be alerted to risk areas such as charges, the authority of intermediaries, or powers of attorney, and benefit from assistance in case of disputes, delivery delays, or conflicts over construction quality.
In parallel, adopt a strict discipline:
– keep all documents (contracts, receipts, DLD statements, Oqood, correspondence);
– prioritize formal communications (official emails, letters) for anything related to payments and commitments;
– limit decisions made based on informal conversations or unwritten promises.
—
Conclusion: a real opportunity, provided you apply strict verification discipline
Dubai’s legal framework for real estate has evolved significantly: strictly regulated escrow accounts, systematic registration of sales, traceability of payments, public registers accessible via Dubai REST. On paper, a well-informed foreign buyer now benefits from solid protections.
But these protections only work fully on one condition: methodically follow a checklist like this one, without giving in to urgency, commercial pressure, or promises too good to be true.
In summary, before buying in Dubai, you must: consider local regulations, research the right location, and evaluate the real estate market.
Before buying, check the zone (freehold or not) and type of right (freehold/leasehold), confirm the legitimacy of the developer, agent, and project, secure money flows via escrow accounts and DLD channels, budget all costs (DLD fees, commissions, service charges, NOC, DEWA), protect your position with an analyzed contract and inspection report, and anticipate your payment obligations and exit strategy.
Applied rigorously, this checklist transforms a potentially risky purchase into a structured operation, where you fully use Dubai’s rules of the game instead of being subjected to them.
A wealth planning project or a question? Contact us now to speak with a wealth management expert.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
