Contracts

Sale and Purchase Agreements in Dubai

The sale and purchase agreement is the document that decides what happens when a property transaction goes wrong, and it is usually signed by people who are focused on the price. This page sets out what a Dubai SPA has to do, the clauses that actually determine disputes later, what differs for off-plan and for mortgaged or tenanted property, and what we look for when reviewing one. Jurisdiction: Dubai, UAE.

Overview

A sale and purchase agreement does two jobs. While everything goes to plan it records the price, the property and the timetable. When something does not go to plan — a late completion, a defect, a failed mortgage, a party who changes their mind — it is the only thing that determines who bears the consequence. Almost every property dispute we handle turns on wording that was agreed without much attention months or years earlier.

Two features of Dubai law shape what the agreement has to achieve. Under Dubai Law No. 7 of 2006, a disposition of real property has no validity unless it is registered, and entries in the Real Property Register carry absolute evidentiary value — so an agreement is a step toward registration rather than a substitute for it, and it needs to describe the property in terms the register will recognise. For units sold before completion, Article 3 of Dubai Law No. 13 of 2008 makes a disposition void unless recorded in the Interim Real Property Register, which changes what an off-plan agreement must provide for.

The practical distinction we draw at the outset is between an agreement that can be negotiated and one that cannot. A private sale between two individuals is usually negotiable on both sides. A developer's standard form generally is not, and the purpose of reviewing it is then to establish what you are committing to rather than to redraft it — which is a different exercise, and still worth doing.

Jurisdiction: Dubai, United Arab Emirates.

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Tell us what has happened, the documents you hold and the dates involved. Our Dubai property law team will review the details and explain the options that may be open to you.

What a Sale and Purchase Agreement Has to Do

Stripped of the surrounding language, an SPA has to answer a fixed set of questions. If it does not answer one of them, that gap is where a dispute will start.

  • Who is selling and who is buying, identified as they appear on the register and on their identity documents, including where a party signs through an attorney or a company.
  • What is being sold, described so that the Dubai Land Department can act on it: the unit, plot, project and community identifiers, and the registered area.
  • The price and how it is paid, including the deposit, the balance, and where each payment goes.
  • When each thing happens, and what follows if a date is missed by either side.
  • What the transaction depends on — a mortgage offer, a No Objection Certificate, vacant possession — and what happens if a condition fails.
  • What the seller promises about title, encumbrances, arrears and tenancies, and what remedy the buyer has if a promise proves untrue.
  • What condition the property is handed over in, what is included, and how defects are dealt with.
  • Who bears which cost, including the Land Department registration fee and the trustee fee.
  • What happens on default, on each side, and what may be forfeited.
  • Where a dispute goes — the Dubai Courts, or arbitration where the contract validly provides for it.
At a glance
Jurisdiction
Dubai, United Arab Emirates
What this covers
The agreement that governs a Dubai sale: the SPA for off-plan, and the MOU or contract of sale for a completed property
Governing law
Dubai Law 7/2006 on registration; Dubai Law 13/2008 for off-plan, with Article 11 as replaced by Law 19/2017; Dubai Law 8/2007 on escrow
Where it completes
Registration with the Dubai Land Department. An unregistered disposition does not achieve what the parties intended
What decides a later dispute
The clauses on price and payment, completion, delay, termination, condition and the dispute forum
Best moment to act
Before signing. After signature the same point becomes a negotiation or a claim rather than a drafting decision
Invest in Dubai real estate - property and sale agreement documents

The Clauses That Decide Disputes Later

These are the provisions that turn out to matter, ranked by how often we see them cause trouble.

  1. The completion date and how it is qualified. "Anticipated" with a broad extension is a fundamentally different promise from a fixed date, and buyers routinely read the first as the second.
  2. Default and forfeiture. What the seller may keep if the buyer does not complete, on what notice, and whether the same applies in reverse. Frequently one-sided in standard forms.
  3. The mortgage condition. Whether the agreement is conditional on the buyer's finance, and what happens if the offer is withdrawn. Without this, a buyer whose lender pulls out is in default.
  4. Property description and permitted variation. Area tolerances and the seller's or developer's right to change layout, specification or common areas — and whether any change gives the buyer a right to exit.
  5. Encumbrances and arrears. Who clears an existing mortgage, service charge arrears and utility debts, and by when. Unresolved, these stop the transfer at the Land Department.
  6. Tenancies. Whether the property is sold with vacant possession or subject to an existing lease. See the section on tenanted property below.
  7. Notices. How notice must be given and to what address. A notice given the wrong way can be treated as no notice at all.
  8. The dispute clause. Where a future dispute goes, and whether it is consistent with any linked agreement in the same transaction.

A clause that contradicts the clause in a linked agreement causes more trouble than no clause at all — that is a real risk where a purchase, a financing document and a side letter are drafted by different people.

Reviewing an Agreement You Cannot Change

Most buyers meet a developer's or a large seller's standard form and are told it is not negotiable. That is often true, and it does not make review pointless — it changes its purpose from redrafting to informed commitment.

What review achieves in that situation:

  • You find out what you are actually committing to, including the parts that differ from what you were told verbally.
  • The genuinely unusual terms are identified and separated from the ones that are standard across the market, so you can judge whether to proceed rather than worrying about all of it equally.
  • The specific risks get managed elsewhere — by timing a payment differently, by getting a point confirmed in writing before signing, or by adjusting what you rely on.
  • You know in advance where a dispute would go and what it would cost, which is part of deciding whether the deal is worth doing.
  • Sometimes the form does move. Not often, and not on the core terms, but a defined point raised early is answered more usefully than a general objection raised late.

Review is also faster and cheaper than most people expect, and it is the last point at which the position can be changed at all.

Off-Plan Agreements: What Is Different

An off-plan SPA is not a completed-property SPA with a later date. It is a different legal object and it needs different provisions.

  • Registration. Under Article 3 of Dubai Law No. 13 of 2008 a disposition of an off-plan unit is void unless recorded in the Interim Real Property Register. The agreement should be clear about registration, and the buyer should verify that it actually happened.
  • Where money goes. Dubai Law No. 8 of 2007 requires buyer payments in registered projects to go into the project escrow account. The agreement should say so, and the payment instructions should match.
  • The payment plan. Milestone-linked or date-linked. They behave very differently when a project slips, and buyers rarely notice which they have signed until it does.
  • Delay. What the agreement provides if handover is late — many provide little, and that is worth knowing before signing rather than after.
  • Variation. The developer's right to change the unit, the specification or the common areas, and whether a material change gives the buyer an exit.
  • Assignment. Whether you can sell before completion, on what conditions and at what cost.
  • The statutory route on default. Where a developer defaults or the project stops, Article 11 of Law No. 13 of 2008 as replaced by Law No. 19 of 2017 provides a Dubai Land Department procedure rather than an ordinary claim.

See off-plan property in Dubai for the full lifecycle, including booking forms.

Mortgaged Property, on Either Side

A mortgage on the seller's side or the buyer's side changes the sequence, and the sequence is where transactions fail.

Where the seller has a mortgage: it has to be discharged for title to transfer, and the mechanics of paying it off from the sale proceeds have to be set out rather than assumed. This is one of the most common causes of a transfer appointment being aborted.

Where the buyer is borrowing: the agreement should address what happens if the offer is withdrawn or delayed, and the lender's own timetable and requirements have to fit the contractual dates rather than the other way round.

What we look at: the outstanding balance and any early settlement cost; the lender's release requirements and how long they take; the order in which discharge, payment and transfer happen on the day; who holds funds in the meantime; and what happens if any step fails after money has moved. See mortgage matters and the closing process.

Buying or Selling a Tenanted Property

Where the property is let, the agreement has to deal with the tenancy explicitly, because the sale does not end it.

The buyer steps into the landlord's position and takes the property subject to the lease and to Law No. 26 of 2007 as amended by Law No. 33 of 2008. An investor who buys intending to occupy or re-let immediately, without addressing this in the contract, has bought a different asset from the one they thought.

What the agreement should record:

  • The tenancy contract and its Ejari registration, the term, the rent and the renewal position.
  • Whether any notice has already been served, by whom, when and by what method — service by Notary Public or registered mail matters under the statutory grounds.
  • Who holds the security deposit and how it transfers.
  • Rent paid in advance, including any post-dated cheques held by the seller.
  • Arrears, and any pending case at the Rental Disputes Centre.
  • Whether the sale is with vacant possession, and if so exactly how and by when that is to be achieved.

Where the buyer intends to recover possession for their own use, the statutory route requires twelve months' notice served by Notary Public or registered mail under Article 25(2), and Article 26 restricts re-letting for two years for residential and three years for non-residential property after recovery for personal use. That has to be planned for before exchange, not afterwards. See landlord matters.

What We Do When We Review or Draft an Agreement

The work is the same in outline whether we are drafting for you or reviewing what has been put in front of you.

  • Check the description against the register. Parties, unit, plot, project and area, verified against the Dubai Land Department record rather than the copy supplied.
  • Read the agreement against the transaction you actually described, not against a precedent. Most problems are mismatches between the two.
  • Identify what is missing, which is usually more consequential than what is badly worded — an absent mortgage condition or an absent delay provision does more damage than a clumsy sentence.
  • Check consistency with linked documents: the booking form, any side letter, the financing documents and, for off-plan, the payment plan.
  • Report in plain terms, separating what stops the deal, what needs changing, what should be confirmed in writing before signing, and what you are simply accepting knowingly.
  • Say where a point cannot be resolved, and what the consequence of proceeding anyway would be.

Where due diligence has not been done, we would do that alongside rather than review a contract about a property nobody has verified. See property due diligence.

What Goes Wrong Most Often

  • Relying on what an agent said where the written agreement says something narrower, with no record of the conversation.
  • No mortgage condition, leaving a buyer in default when a lender withdraws.
  • A completion date read as fixed when it was expressed as anticipated with a broad extension.
  • An existing mortgage or arrears left unaddressed, discovered at the transfer appointment.
  • The property described too loosely for the register to act on.
  • A tenanted property bought as though vacant.
  • Signing a variation or acknowledgement to keep things moving, without advice on what it gives up.
  • An off-plan interest never registered in the Interim Real Property Register.
  • Dispute clauses that contradict each other across linked agreements in the same transaction.
  • Paying before the position is verified, which converts a negotiable problem into a claim.

Where This Page Fits

The agreement sits in the middle of a transaction. These pages cover what comes before and after it.

Official Legal Sources

Every legal statement on this page is taken from an official source. Where a proposition could not be verified against one it is not stated, and no fees or timescales are published here.

Instrument or bodyRelevance to this pageOfficial source
Dubai Law No. 7 of 2006 concerning Real Property RegistrationA disposition has no validity unless registered; absolute evidentiary value of the register, which governs how the property must be describedDubai Legislation
Dubai Law No. 13 of 2008 on the Interim Real Property Register, Article 11 as replaced by Law No. 19 of 2017Article 3 — an off-plan disposition is void unless registered; the DLD procedure on developer defaultDubai Legislation
Dubai Law No. 8 of 2007 concerning Escrow Accounts for Real Property DevelopmentWhere off-plan buyer payments must be madeDubai Legislation
Dubai Law No. 26 of 2007 as amended by Law No. 33 of 2008The tenancy a buyer inherits; Article 25(2) twelve months' notice by Notary Public or registered mail; Article 26 re-letting restrictionDubai Legislation
Federal Law No. 6 of 2018 concerning ArbitrationWhere the dispute clause provides for arbitration rather than the courtsUAE Legislation portal
Dubai Land DepartmentThe register, transfer, No Objection Certificates and published registration feesDubai Land Department

Legislation last checked against official sources: 28 August 2026. Jurisdiction: Dubai, United Arab Emirates.

Selling: What the Seller Should Settle Before Marketing

Most of this page addresses buyers, because buyers carry more risk. Sellers have a shorter list, and getting it right prevents the transaction collapsing at the transfer appointment.

  • Confirm your own register position. That the property is registered in the name you expect, and that every registered owner is a party to the sale.
  • Deal with the mortgage early. Obtain the outstanding balance, any early settlement cost, and the lender's release requirements and timescale, before agreeing dates with a buyer.
  • Clear service charge arrears, or agree explicitly who clears them and when. They can block the No Objection Certificate the transfer requires.
  • Resolve the tenancy position before marketing the property as vacant. If it is let, sell it as let and price it accordingly.
  • Check any power of attorney you intend to rely on is in force and wide enough, particularly if you are selling from abroad.
  • Be careful what you warrant. A seller who promises something about title, arrears or the tenancy that turns out to be untrue has given the buyer a remedy.

From Agreement to Registered Title: The Sequence

The order of events matters more than the calendar, because each step depends on the one before it.

  1. Due diligence — ownership, register, encumbrances, arrears, tenancy, and for off-plan the project and escrow position.
  2. Agreement — negotiated or reviewed, with conditions and the timetable set to fit the finance and any NOC.
  3. Deposit — paid on terms that say what happens to it if the transaction does not complete, and on whose default.
  4. Conditions satisfied — mortgage offer confirmed, developer No Objection Certificate obtained, arrears cleared, existing mortgage discharge arranged.
  5. Transfer — at a Real Estate Registration Trustee Centre, with the payment, any mortgage discharge and the transfer sequenced deliberately.
  6. Registration — the entry made and the title deed issued. Until this step the disposition has no validity under Dubai Law No. 7 of 2006.
  7. Afterwards — confirm the record shows you as owner, and deal with utilities, the community and any tenancy handover.

We do not publish an overall timescale. What governs it is the readiness of the documents, the lender, the NOC and any translation or legalisation — not the Land Department. See the closing process.

What We Ask You to Send

  • The draft agreement, with every annexe, schedule and addendum.
  • The booking or reservation form, if one was signed.
  • The title deed, or for an off-plan unit the Initial Sale Contract and the Interim Real Property Register entry.
  • The payment schedule and any payments already made, with receipts.
  • Marketing material, brochures and floor plans relied on.
  • Correspondence with the other side and with agents or brokers.
  • The mortgage offer or approval in principle, if you are borrowing.
  • The tenancy contract and Ejari registration, if the property is let.
  • Any power of attorney to be used, and company documents where a company is a party.
  • Passport and Emirates ID for the parties instructing us.

Send what exists rather than waiting for a complete set — the review can start on most of the file and the gaps are usually easier to close once identified.

Checklist

SPA and Sale Agreement Review Checklist

Work through these before signing. Each line is a clause that decides something later, and the ones people skip are usually the ones that matter when the transaction goes wrong.

Parties and property
  • Are the parties correctly named, and does each have authority to sign
  • Is the unit identified precisely: number, plot, area, floor and project
  • Does the stated area match the register or the interim register entry
  • Is the seller the registered owner, or acting under a valid power of attorney
  • What exactly is included: parking, storage, fixtures, furniture
Price and payment
  • The total price and what it includes
  • The payment schedule and what triggers each instalment
  • Who bears the transfer fee, agency fee, service charges and utilities
  • The account payments must be made to, and whether it is an escrow account
  • Consequences of late payment on either side
Completion and delay
  • The completion or handover date, and any extension the contract permits
  • What happens if completion is late, and for how long
  • Condition on delivery, and the standard the property must meet
  • Snagging, defects and any warranty period
  • Who bears risk between signature and transfer
Exit and dispute
  • Termination rights, and what each side recovers on termination
  • Any deposit forfeiture or penalty, and whether it is symmetrical
  • Force majeure, and how widely it is drawn
  • Governing law and the dispute forum: court or arbitration, and where
  • Notices: to whom, by what method, and with what period
Encumbrances and third parties
  • Existing mortgage on either side, and how it is released
  • Any tenancy in place and its Ejari registration
  • Developer NOC and service charge clearance
  • Owners association arrangements and outstanding charges
  • Restrictions or notes recorded against the title
Off-plan specifics
  • Is the project registered and is the unit entered in the interim register
  • Is the escrow account named, and are payments routed to it
  • Are the annexes attached in full, including plans and specification
  • What tolerance applies to area variation, and what follows if it is exceeded
  • What the contract says about the developer substituting materials or layout

If a clause cannot be changed, that is still worth knowing before signature: it changes the price you should accept and the risk you are taking on.

Have the Agreement Reviewed Before You Sign

Costs to Budget For

Beyond the price itself, a Dubai purchase carries costs that should be identified in the agreement rather than discovered at the counter.

  • Dubai Land Department registration fee. The Department publishes this as 2% of the sale value from the seller and 2% from the buyer, though local practice commonly places the whole amount on the buyer. Whatever is agreed belongs in the contract. The current published figures are set out on our Dubai Land Department page, with the date they were checked.
  • Trustee centre service partner fee, charged separately at the transfer appointment.
  • Title deed issuance and map fees.
  • Developer No Objection Certificate fee, where one is required.
  • Mortgage costs — arrangement, valuation, registration of the new charge and discharge of any existing one, including early settlement charges.
  • Service charges apportioned to the transfer date, and any arrears.
  • Broker commission, agreed in writing, with who pays it stated.
  • Legal translation and legalisation, where documents were executed abroad.

Published official fees change. We confirm the current position in writing for your transaction rather than relying on any figure found online, including our own.

Send the Draft Before You Sign It

We read the agreement and its annexes against the register entry and the payment route, tell you which clauses will decide a later dispute, and set out what to negotiate and what to accept.

Jurisdiction: Dubai, United Arab Emirates. General information about Dubai property law, not legal advice on a particular matter. Contact does not create a lawyer and client relationship, and outcomes depend on the contract, the evidence and the forum.

It has to answer a fixed set of questions: who is selling and buying, identified as they appear on the register; what is being sold, described so the Dubai Land Department can act on it — unit, plot, project, community and registered area; the price and how it is paid; the timetable and what follows if a date is missed; what the transaction is conditional on and what happens if a condition fails; what the seller promises about title, encumbrances, arrears and tenancies; the handover condition; who bears which cost; what happens on default; and where a dispute goes. A gap in any of those is where a dispute will start.

Yes, but its purpose changes from redrafting to informed commitment. You find out what you are actually committing to, including where it differs from what you were told verbally; the genuinely unusual terms are separated from the ones that are standard across the market, so you can judge whether to proceed; the specific risks get managed elsewhere, by timing a payment differently or getting a point confirmed in writing before signing; and you know in advance where a dispute would go. Occasionally the form does move on a defined point raised early.

An off-plan agreement is not a completed-property agreement with a later date. Registration is different — under Article 3 of Dubai Law No. 13 of 2008 the disposition is void unless recorded in the Interim Real Property Register. Payment is different — Dubai Law No. 8 of 2007 requires payments in registered projects to go into the project escrow account. It also needs provisions a completed-property contract does not: the payment plan and whether it is milestone-linked or date-linked, what happens on delay, the developer's right to vary the unit, and whether you can assign before completion.

In practice, the completion date and how it is qualified. An anticipated date with a broad extension provision is a fundamentally different promise from a fixed one, and buyers routinely read the first as the second. Close behind it are the default and forfeiture provisions — what the seller may keep if you do not complete, on what notice, and whether the same applies in reverse, which in standard forms it frequently does not.

It should address what happens if your finance offer is withdrawn or delayed — without a mortgage condition, a buyer whose lender pulls out is simply in default. The lender's own timetable and requirements also have to fit the contractual dates rather than the other way round. If the seller also has a mortgage, the mechanics of discharging it from the sale proceeds have to be set out rather than assumed; that is one of the most common causes of a transfer appointment being aborted.

The sale does not end the tenancy. You step into the landlord's position and take the property subject to the lease and to Law No. 26 of 2007 as amended by Law No. 33 of 2008. The agreement should record the tenancy contract and Ejari registration, the term and rent, whether any notice has already been served and by what method, who holds the deposit, rent paid in advance including post-dated cheques, arrears and any pending RDC case. If you intend to occupy the property yourself, the statutory route requires twelve months' notice by Notary Public or registered mail under Article 25(2), and Article 26 restricts re-letting afterwards — plan for that before exchange.

The Department publishes it as 2% of the sale value from the seller and 2% from the buyer. How it is actually borne between the parties is a matter for the sale contract, and local practice commonly places the whole amount on the buyer. Whatever is agreed should be written into the agreement rather than assumed — it is a frequent and entirely avoidable source of argument at the transfer appointment. Published fees change, so confirm the current position at the time of your transaction.

That depends on what the agreement says and on what has happened. The starting points are whether any condition has failed, whether the other side is in breach, and what the termination and forfeiture provisions actually provide. What we would not advise is stopping payments or simply walking away to force the issue, because that generally puts you in default and changes your position rather than protecting it. Take advice on the specific wording before doing anything that could be characterised as a breach.

The answer is in the property description and variation provisions: area tolerances, any right the seller or developer has to change layout, specification or common areas, and whether a material change gives you a right to exit or a remedy. This is why marketing material, brochures and floor plans relied on at purchase should be kept — where the delivered property departs from what was contracted for, those documents and the agreement together are the evidence.

It should, and it should be consistent with any linked agreement in the same transaction. A clause pointing to arbitration in one document and to the courts in another causes more trouble than no clause at all, and the resulting jurisdiction argument is usually fought before anyone reaches the merits. Whether arbitration suits your transaction depends on its scale — for a straightforward residential purchase, a clause requiring a three-member tribunal can make a modest dispute uneconomic to pursue.

Yes, and the work is similar in outline: check the description against the Dubai Land Department record rather than the copy supplied; draft or read against the transaction you actually described rather than against a precedent; identify what is missing, which is usually more consequential than what is badly worded; check consistency with the booking form, any side letter, the financing documents and, for off-plan, the payment plan; and report in plain terms, separating what stops the deal from what you are simply accepting knowingly.

Before. An agreement is a commitment about a property, and reviewing the commitment without verifying the property is half an exercise. Ownership, the register position, encumbrances, service charge arrears and the tenancy position should all be established before signing, and for off-plan the project registration and escrow account should be verified before any reservation amount is paid. Where due diligence has not been done, we would do it alongside the review rather than report on a contract about a property nobody has checked.

We quote after seeing the documents, and we do not publish rates. A short private-sale agreement with clear title is a different piece of work from a developer's standard form for an off-plan unit in a project with a payment plan and linked financing documents. What we will say is that review is faster and cheaper than most people expect, and that it is the last point at which the position can be changed at all.