Field notes / escrow / Oqood / law
Escrow and Oqood: what protects an off-plan buyer in Dubai
Two pieces of paper matter more than the brochure: the project escrow account and the Oqood registration. What each one does, which law creates it, and how to check both yourself.
Drafted with the studio for Savio’s review
The brochure sells the view. The protection, if there is any, is in two registrations you can check yourself before you pay anything.
The escrow account: Law No. 8 of 2007
Law No. 8 of 2007 concerning escrow accounts for real property development in the Emirate of Dubai requires a developer selling off-plan to open a dedicated escrow account for each project with an approved bank. Buyers' payments go into that account. The escrow agent releases funds to the developer against construction progress certified by an approved consultant, and a part is held back until after completion.
What this means for you: your instalments should be paid into the project escrow account, by name and number, and never to a sales company or an individual. If the payment instruction shows a different account, stop and ask.
The interim register and Oqood: Law No. 13 of 2008
Law No. 13 of 2008 regulating the interim real property register created the register in which off-plan sales are recorded before the building exists. The Oqood certificate is the evidence that your purchase is recorded there. A developer may not sell a unit off-plan unless the project is registered with the Dubai Land Department; an unregistered sale is not a protected sale.
Law No. 19 of 2017 amended the 2008 law. It set out the procedure when a buyer stops paying, scaled to how far the project has progressed, and the role of the Dubai Land Department in that process. The exact schedule is in the law text on the Dubai Land Department's legislation page; read it with your consultant before you sign, because it is the part of the contract you will care about if your circumstances change.
How to check both yourself
- Open the Dubai REST app and search for the project by name or developer.
- Confirm the project is registered and its escrow account is active.
- Ask the developer for the escrow account details in writing and compare them.
- After booking, ask for the Oqood certificate in your name; a receipt is not a certificate.
What these do not do
Escrow and registration protect the money you have paid from being spent elsewhere. They do not guarantee the building finishes on the promised date, or that its value rises. Delivery record is a separate question, and it is the one I spend the most time on: the developer's last three completed projects, their promised and actual handover dates, and what the owners say now.