Off-Plan

Off-Plan Sales & the Interim Register (Law 13 of 2008)

Law No. 13 of 2008 makes every off-plan sale count only once it is entered in DLD's Interim Property Register (Oqood), sets what a developer must have before selling, and, in Article 11 as replaced by Law No. 19 of 2017, fixes what a developer may keep when a buyer defaults. The exam tests the 2017 completion tiers, so the 2008 and 2009 texts make the best distractors.

Laws and legislation8 min read7 sections

Must-know for the exam

Any disposition of an off-plan unit must be entered in the Interim Property Register; an unregistered sale or disposition is void (Art. 3(1); in force 12 Oct 2026).
Oqood: the developer registers the sale within 90 days of signing; fee 4% of price, shared equally unless agreed (DLD service card; ECR 30/2013 Art. 3(1); as at 12 Oct 2026).
No off-plan sale before possession with demarcation certificate, actual control of the plot and competent-entity approvals (Law Art. 4; ECR 6/2010 Art. 4).
Buyer default: developer notifies DLD on its form; DLD serves a dated 30-day written notice and may mediate (Art. 11(a)(1)-(2) as replaced 2017).
Above 80% completion: keep the contract and claim the balance, ask DLD to auction (buyer pays costs), or terminate keeping up to 40% of unit value (Art. 11(a)(4)(a)).
60%-80%: terminate and keep up to 40% of unit value; below 60% after work starts: up to 25% of unit value (Art. 11(a)(4)(b)-(c)).
Not commenced for reasons beyond control: keep up to 30% of amounts paid; refund the rest within 60 days of termination (Art. 11(a)(4)(d)).
Other tiers: refund the excess within one year of termination or 60 days of resale, whichever is earlier (Art. 11(a)(4)(a)-(c)).
RERA cancellation of the project: the developer refunds all payments under Law No. 8 of 2007; appeal within 7 working days (Art. 11(b); ECR 6/2010 Art. 24).
Area: indemnity only if the unit is more than 5% short of the agreed net area; no charge for extra area unless agreed (ECR 6/2010 Art. 13; in force 12 Oct 2026).

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Traps that cost marks

Applying the above-80% remedies, or the 25% tier, to a unit between 60% and 80% complete.
Applying the percentage to the amount paid rather than to the unit's contract value.
Giving a unit in the 60-80% tier the above-80% option of keeping the contract and claiming the balance.
Thinking the developer serves its own notice and terminates, as under a tenancy.
Taking the one-year limit without checking whether a resale brings the 60-day limit forward.
Using the one-year refund window, which does not apply to the not-commenced tier.
Treating interim registration as a formality that only matters at completion.
Applying the not-commenced 30% to the unit's value instead of to the amounts actually paid.

Why it matters on the exam

Most new-build sales in Dubai are off-plan, and brokers who sell them must know when a sale is valid, what a developer may charge, and what happens when a buyer stops paying. Exam items are short scenarios: a completion percentage and a set of payments, and you pick the remedy or compute the refund.

•Article 11 has had three texts: 2008 (deduct up to 30% of payments), 2009 (tiers by project completion) and 2017 (tiers by unit completion, DLD procedure). Answer from the 2017 text.
•Know which base each percentage uses: unit contract value for the 40% and 25% caps, amounts paid for the 30% not-commenced cap.
•Watch the boundaries: 'exceeds 80%' for the keep-the-contract and auction options; exactly 80% is in the 60%-80% band.

Registration and developer duties

Interim Property Register (Oqood). DLD's record of off-plan sales and other off-plan dispositions before units move to the Property Register (Art. 2). Every disposition must be entered, and a sale or disposition that transfers or restricts ownership is void unless entered (Art. 3(1)). Registered off-plan units may be sold, mortgaged or otherwise disposed of (Art. 6).

•Before selling off-plan: possession of the plot with the demarcation certificate, actual control, and competent-entity approvals (Law Art. 4; ECR 6/2010 Art. 4). DLD marks the plot 'a development project governed by the provisions of the Law' until completion and registration of units, or cancellation (ECR Art. 5).
•A private off-plan sale in a project not approved and registered is void (Law Art. 10; ECR Art. 11).
•Developers may charge only DLD-approved administrative costs on any sale or resale (Law Art. 7; ECR Art. 8).
•Marketing through a broker: project registered with DLD, agreement with a licensed broker, marketing agreement registered with DLD (Law Art. 9; ECR Art. 10). The broker pays sale proceeds into the escrow account without deducting commission (ECR Art. 12).

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Frequently asked questions

What can a developer keep if an off-plan buyer defaults at 60-80% completion?

Up to 40% of the unit's contract value after terminating, refunding the excess within one year or 60 days of resale, whichever is earlier. Source: Law No. 13 of 2008, Art. 11, as replaced by Law No. 19 of 2017, checked 12 Oct 2026.

Exam-style questions

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