Dubai · Buyer protection

Is my off-plan payment protected in Dubai?

Dubai holds off-plan buyer instalments for registered projects in a regulated escrow account under Dubai Law No. 8 of 2007. That is real protection for construction funds. It is not a guarantee of handover date, returns, or that every marketing promise sits in the SPA.

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What escrow does

Under Dubai Law No. 8 of 2007 on Escrow Accounts, payments from off-plan buyers for a registered project are paid into a project escrow account supervised under that law. Funds are released for construction and related project costs under the escrow rules, not spent as free cash by the developer.

Practical checks before you transfer:

• Project is registered with Dubai Land Department / RERA for off-plan sale.
• Your SPA names the escrow account and the payment schedule.
• You pay only the accounts the SPA and booking letter specify.

What escrow does not do

• It does not promise a completion date. Handover is subject to the SPA.
• It does not protect you from buying the wrong unit or overpaying relative to the market.
• It does not replace Oqood registration, the DLD transfer fee, or your own KYC with the developer.

Oqood and the public record

After the SPA, register the initial sale on Oqood with DLD (e-service states within 90 days of the SPA; fee split commonly 2% + 2%). Oqood puts your purchase on the land department record. Escrow holds the money; Oqood records the sale.

Permits and brokers

Property adverts in Dubai need a DLD (Trakheesi) permit; the Madmoun QR is the public check (DLD ad-permit guidance). Brokers and permits can be validated through DLD's verify-licence services. Ovation Capital Properties LLC is RERA ORN 47175; Rahul Agiwal is BRN 78062.

Before you send the first transfer

1. Read the SPA payment and default clauses.
2. Confirm escrow bank details in writing.
3. Keep proof of every transfer.
4. Register Oqood on time.

For a fuller pitfalls and costs chapter, get the free Dubai Investor Playbook. When you want a unit checked against a live offer from projects such as Riverside Views or Kanyon, request a callback.

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FAQ

Where does my off-plan money go?

For a project registered under Dubai's escrow framework, buyer instalments go into a regulated project escrow account, not into the developer's ordinary trading account. Dubai Law No. 8 of 2007 sets that framework.

Does escrow mean I cannot lose money?

No. Escrow governs how construction funds are held and released. It does not guarantee handover dates, rental income, or resale prices. Read the SPA remedies and the project's RERA registration.

How do I check a project is legitimate?

Confirm the developer, the RERA/DLD project registration, and the advertising Trakheesi permit (Madmoun QR). DLD's verify-licence and ad-permit services are the public checks. Brokers should show RERA ORN and the advisor's BRN.

What is Oqood's role in protection?

Oqood registers your initial sale with Dubai Land Department so the purchase is on the public record. It is separate from the escrow account that holds instalments.

Who can help me verify before I pay?

Download the free Dubai Investor Playbook for the pitfalls checklist, then request a callback from Ovation Capital Properties (RERA ORN 47175).