Off-Plan Sales, Escrow and Project Registration
Registration before selling
A developer may not sell off-plan units until the project is registered with RERA and an escrow account is opened with an accredited bank under Law No. 8 of 2007. Buyer payments must be deposited into that escrow account and may be released only against certified construction progress. Off-plan sales are recorded in the Interim Real Estate Register (Oqood) under Law No. 13 of 2008; the unit is later transferred into the title register on completion.
Marketing and cancellation
Marketing an unregistered project is an offence, and sales concluded in an unregistered project are treated as void. Where a project stalls, Law No. 9 of 2009 sets out the procedure for cancellation and for liquidation of the escrow account, with refunds distributed to buyers through a DLD-approved process rather than automatically in full.
Traps
The favourite trap is the developer who asks buyers to pay "registration fees" or instalments into a company operating account rather than the escrow account. Another is the assumption that a delayed handover automatically entitles the buyer to a full refund plus compensation - the contract terms and the DLD process govern. Also keep the registers distinct: Oqood is the interim off-plan register, not the title register, and project registration is different from broker registration.
Rule of thumb
For every off-plan payment, ask three questions: is the project registered, what is the escrow account number, and has the unit been entered in Oqood? If any answer is missing, stop and verify before money moves. Worked example: a buyer is shown a project number that turns out to be the developer's trade licence number - not a project registration - so no lawful sale can yet take place.