Topic · updated 02.09.2026 · 5 min read · Lucent Legal team
Buying property in Dubai: legal risks and disputes
Key points
- Under Law No. 8 of 2007, an off-plan developer must park buyers' payments in a separate escrow account run by an agent bank — not in its own operating account.
- The DLD charges a 4% registration (transfer) fee on the property price; officially split 2%/2% between seller and buyer, though in practice the buyer usually ends up paying the full 4%.
- The sale and purchase agreement (SPA) usually adds a grace period beyond the stated handover date — sources cite 6 to 12 months — and a delay becomes legally actionable only once that period runs out.
- Disputes over officially cancelled or frozen projects skip ordinary court — they go to a Special Tribunal, created by Decree No. 21 of 2013 and expanded by Decree No. 33 of 2020.
- Since 1 February 2023, a non-Muslim who dies in the UAE without a will has their assets default to Federal Decree-Law No. 41 of 2022 (50% to the spouse, the rest split equally among children) rather than Sharia.
The Dubai property market runs on specific laws and two regulators, not on marketing promises: the Dubai Land Department (DLD) and its subordinate RERA (Real Estate Regulatory Agency). The core rule for any off-plan buyer is that your money goes into a separate escrow account controlled by an agent bank (Law No. 8 of 2007), not straight to the developer. That doesn't erase the risks of a given deal — delays, hidden costs, outright fraud — but it gives you a clear line of defense, from a free DLD check to a RERA complaint to a dedicated court tribunal.
Before you buy: checks and general risks
Get the full picture of market risk before your first payment — not just off-plan specifics, but hidden costs, banking friction for foreign buyers, and inheritance — then verify the specific project and developer through DLD's official tools.
- What can go wrong when buying property in Dubai — read this first if you're still choosing: hidden costs, liquidity, sanctions exposure, and inheritance risk.
- How to check a developer's escrow account before buying off-plan — read this before a specific payment: a step-by-step escrow and license check via Dubai REST, about 10 minutes.
If the project is delayed
The SPA handover date isn't a guarantee, but it isn't a blank check for the developer either — a delay has legal limits and a defined complaint route.
- Developer isn't handing over the unit on time: what to do about off-plan delays — read this once the SPA handover date has passed: when a delay counts as a breach, where to complain, and what you can realistically recover.
- Missed an off-plan instalment: termination and what you get back — read this if you are the one in arrears, not the developer: the DLD termination procedure, the retention caps by completion stage, and how the refund is calculated.
If you suspect fraud
Fraud is a separate, more serious category — not a delay but a deliberate scheme: sales routed around escrow, double-selling a unit, a fake guaranteed-return promise, or a project that doesn't exist.
- Developer fraud in Dubai: the real schemes and how to get your money back — read this if you suspect deliberate fraud rather than a delay: the common schemes, where to turn — DLD/RERA, the tribunal, or the police — and an honest read on your odds of getting the money back.
FAQ
What laws and regulators govern buying property in the UAE?
Two bodies run the show: the Dubai Land Department (DLD) and its subordinate RERA. The governing laws are No. 8/2007 on escrow accounts, No. 13/2008 on the Oqood pre-sale registry, and, for cancelled projects, Decrees No. 21/2013 and No. 33/2020 that set up the Special Tribunal.
How do I check a deal is safe before I transfer money?
Free DLD tools — the "Real Estate Project Status" (Mashrooi) feature in the Dubai REST app, or dubailand.gov.ae — let you check a project's registration, its escrow account details, and the developer's and broker's license (Trakheesi) in about 10 minutes.
What's the difference between a normal handover delay and developer fraud?
A delay involves a real, registered project that simply missed the SPA's grace period; the route is a RERA/DLD complaint. Fraud means sales routed around escrow, double-selling, a fake return promise, or a project that never really existed — alongside RERA, that usually means a police report too.
Does filing a RERA complaint guarantee you get your money back?
No. Neither a RERA complaint, nor the Special Tribunal, nor a regular court guarantees a full or fast refund — the outcome depends on how much is actually left in the escrow account, how far the project got, and whether the money has already left the UAE.
Sources
- Dubai Law No. 8 of 2007 on escrow accounts for off-plan real estate development
- Dubai Law No. 13 of 2008 on the interim (Oqood) real estate register
- Dubai Decree No. 21 of 2013 and Decree No. 33 of 2020 on the Special Tribunal for cancelled projects
- Federal Decree-Law No. 41 of 2022 on civil personal status (non-Muslim inheritance)
- Dubai Land Department — dubailand.gov.ae and the Dubai REST app (project status, escrow and Trakheesi license checks)
This material is for information only and is not legal advice. UAE law changes — a lawyer will assess how it applies to your situation.