7.2 Oqood and the Interim Property Register: Off-Plan Sales and Developer Duties
Key Takeaways
Under Article 3 of Law No. 13 of 2008, an off-plan sale or disposition is void unless entered in DLD's Interim Property Register (Oqood).
A developer may not sell off-plan before taking possession of the land and obtaining the required approvals (Article 4 of Law No. 13 of 2008).
A developer must compensate a buyer if a unit's net area is more than 5% smaller than agreed (Executive Council Resolution No. 6 of 2010, Article 13).
Developers may charge buyers for a resale or other disposition only DLD-approved administrative costs (Article 7 of Law No. 13 of 2008).
Under Law No. 6 of 2019, developers are liable for 10 years for structural defects and for 1 year from handover for defective installations.
7.2 Oqood and the Interim Property Register: Off-Plan Sales and Developer Duties
An off-plan unit cannot go into the ordinary Property Register because it does not yet exist as a finished unit. Law No. 13 of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai (issued 14 August 2008) created a separate register for these sales, run through DLD's Oqood system, and its implementing bylaw (Executive Council Resolution No. 6 of 2010) sets the developer's main duties.
1. Registration in the Interim Register
- Article 3(1): any disposition of an off-plan unit is entered in the Interim Property Register, and any sale or other disposition that transfers or restricts ownership or related rights is void unless entered in that register.
- Article 6: units sold off-plan and entered in the register may be sold, mortgaged or otherwise disposed of. Law No. 14 of 2008 allows mortgages to be registered in the Interim Register.
- Late registration: if a developer registers a disposition late, DLD registers it and fines the developer AED 10,000 (EC Resolution No. 6 of 2010, Article 3).
- Initial sale certificate: once registered, the buyer receives an Oqood certificate showing the interim registration. On completion the unit moves to the Property Register and a title deed is issued.
| Oqood (interim registration) | Title deed | |
|---|---|---|
| Register | Interim Property Register (Law No. 13 of 2008) | Property Register (Law No. 7 of 2006) |
| Stage | Off-plan or under construction | Completed |
| Resale | Assignment registered through Oqood with developer approval | Transfer at a trustee centre |
2. Preconditions for selling off-plan
| Precondition | Source |
|---|---|
| Developer recorded in DLD's developer register and licensed | Law No. 8 of 2007, Article 4 |
| Possession of the land, demarcation certificate, actual control of the plot and the required approvals before starting or selling | Law No. 13 of 2008, Article 4; EC Resolution No. 6 of 2010, Article 4 |
| Project escrow account opened | Law No. 8 of 2007, Article 6 |
| DLD's written authorisation to advertise or exhibit | Law No. 8 of 2007, Article 5 |
| Any sale before the project is approved and registered is void | EC Resolution No. 6 of 2010, Article 11; Law No. 13 of 2008, Article 10 |
3. Marketing through brokers
A developer that uses brokers must contract with a licensed broker and register the marketing agreement with DLD (Law No. 13 of 2008, Article 9; EC Resolution No. 6 of 2010, Article 10). The broker deposits buyers' money into the escrow account and may not deduct commission first (Article 12 of the Resolution).
4. Fees and charges
- The off-plan sale is registered with DLD's 4% fee, shared as the parties agree; developers often offer to pay some or all of it as an incentive.
- Article 7 of Law No. 13 of 2008 and Article 8 of the Resolution forbid a developer from charging any amount for a sale, resale or other disposition except administrative costs approved by DLD.
5. Area differences
- Law No. 13 of 2008, Article 12: if the area increases after delivery, the developer cannot claim more money; if it decreases, the developer compensates the buyer unless the decrease is inconsequential.
- EC Resolution No. 6 of 2010, Article 13: the net area is used for registration; extra area cannot be charged unless agreed; the developer must indemnify the buyer if the net area is more than 5% smaller than agreed, calculated on the contract price.
6. Payments, handover and termination by the buyer
- Payments linked to progress: a buyer may ask the court to end the contract if the developer refuses to settle payments according to the construction milestones proposed by RERA, makes material changes to agreed specifications, refuses without accepted reason to deliver the final sale agreement, or hands over a unit unfit for use because of material defects (EC Resolution No. 6 of 2010, Article 20).
- Handover and title: after the completion certificate, a developer may not refuse to hand over or register a unit for a buyer who has met all contractual obligations, even if the buyer owes the developer other money; DLD may register the unit in the buyer's name itself (Article 7 of the Resolution; Article 8 of Law No. 13 of 2008).
- Disputes: DLD may attempt conciliation between developer and buyer; a signed settlement confirmed by DLD binds both (Article 14 of the Resolution).
7. Defect liability after completion
Law No. 6 of 2019 (jointly owned property) sets the developer's liability (Article 40):
| Defect | Period | Starts |
|---|---|---|
| Structural parts | 10 years | Completion certificate |
| Installations (mechanical, electrical, sanitary, sewerage and similar) | 1 year | Handover of the unit (or completion certificate if the owner refuses possession) |
Any agreement made after the law came into force that contradicts these rules is void, so a sale contract cannot shorten them. Contractors' and designers' own decennial liability under the Civil Transactions Law applies alongside this.
A buyer signs an off-plan contract in a showroom and pays AED 500,000, but the developer never registers the sale in the Interim Property Register. The developer later tries to cancel the contract and keep the deposit under its own default clause. What does Law No. 13 of 2008 say about the unregistered sale?
The contract is fully enforceable as an ordinary commercial agreement
It converts into a long-term lease heard by the RDC
The developer may keep half the deposit as administrative costs
A sale of an off-plan unit is void unless entered in the Interim Property Register, so the developer cannot rely on it to forfeit the buyer's money
A developer owns a plot in Jumeirah Village Circle and has designs, but has not yet obtained the required approvals or opened an escrow account. It wants to start taking off-plan bookings next week. What is the legal position?
Bookings are allowed if the developer pre-sells at least 30% of units
The developer must first meet the preconditions: approvals and possession of the land, an escrow account, DLD advertising authorisation and registration of the project; a sale before approval and registration is void
Bookings are allowed if three licensed brokers endorse the project
Only a newspaper prospectus is required
Five years after handover, an owner in a jointly owned building finds serious structural cracking caused by defective foundations. The sale contract says all developer warranties end 12 months after completion. Which statement is correct?
The 12-month clause is valid, so the developer has no liability
The owner can claim only against the owners committee
The developer remains liable: Law No. 6 of 2019 makes developers liable for structural defects for 10 years from the completion certificate, and contrary agreements are void
Liability is limited to the 5% escrow retention
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