Key points
- Escrowed funds of an off-plan project (Law No. 8 of 2007) are only released to the developer against construction milestones verified by independent consultants and approved by RERA.
- 5% of the project's value stays retained in escrow for one year after completion, securing the remedy of defects identified at handover.
- The off-plan sale must be recorded in the Oqood interim registry (Law No. 13 of 2008, as amended by Law No. 9 of 2009); on completion, the entry converts into final title in the land registry.
- Project progress and developer accreditation can be checked publicly through Dubai Land Department services.
- DLD registration fees amount to 4% of the price, plus administrative charges.
Milestone releases: the heart of the system
Every developer withdrawal requires certified progress: an independent consultant verifies, RERA authorises. Buyers never fund anything but the actual construction of their own project.
The 5% retention: the warranty year
At completion, 5% of project value remains blocked in escrow for a year. Defects recorded at handover — finishes, equipment, waterproofing — must be remedied before the balance is released. The snagging inspection is therefore not a formality: it is the moment the buyer holds real leverage, backed by real funds.
From interim registry to final title
During construction, the buyer's right lives in Oqood — an unregistered sale is void. At delivery it converts into final title at the DLD. The chain is continuous and public.
What this means in practice
The house applies the same discipline in Dubai as everywhere: dedicated vehicle, progress documented to investors, staged acceptance — that is how we operate in Dubai. The Emirates' off-plan framework is among the most prescriptive we operate under — provided one actually uses it.
General information, verified at the date of publication. Every operation requires advice from qualified local counsel.