How to Avoid Off-Plan Property Scams in Dubai: Escrow, Oqood and What to Check

The short answer: the biggest protection when buying off-plan in Dubai is the law itself. Every registered off-plan project must have a DLD-registered escrow account, and your payments must go into it. So the checks that matter most are: is the developer and the project registered with the Dubai Land Department, are you paying into the project’s escrow account, and is your purchase registered (Oqood)? This guide shows you how to confirm all three.

The off-plan scams and traps to watch for

• Projects that aren’t registered: “pre-launch” sales of projects with no DLD registration or escrow account.
• Payments to the wrong account: being asked to pay a booking amount in cash or to an agent’s or individual’s account.
• Fake launch agents: people claiming special allocations or “VIP prices” for launches they have no connection to.
• Guaranteed returns: promises of fixed rental yields or guaranteed price growth that aren’t in the contract.
• Resale traps: buying someone’s off-plan unit without the developer’s no-objection certificate or a proper DLD transfer, or paying an inflated premium.

Step 1: Check the developer and the project with the DLD

Use the Dubai REST app or the Dubai Land Department website to confirm the developer is registered and the project is registered, including its status and construction progress. Our projects directory also shows DLD status and construction completion for registered Dubai projects.

Step 2: Pay only into the project’s escrow account

Under Dubai’s escrow law, buyers’ payments for off-plan property go into a project escrow account held with an approved bank and supervised by the DLD. That money is released to the developer as construction progresses. Check that the account details in your contract and payment instructions are the project’s escrow account in the developer’s name, never cash and never a personal account.

Step 3: Verify the broker and the advert

Ask for the broker’s BRN and check it in the Dubai REST broker directory. Check that the advert carries a DLD advertising permit (Trakheesi). For launches, confirm with the developer’s official sales team that the agency is authorised to sell the project.

Step 4: Read the sale and purchase agreement (SPA)

• The payment plan and exactly when each payment falls due.
• The expected completion date and what happens if it’s delayed.
• The unit size, specifications and floor plan you’re buying.
• Whether any promised “returns” are actually in writing. If they aren’t in the contract, they aren’t guaranteed.

Step 5: Make sure your purchase is registered (Oqood)

Off-plan purchases in Dubai are registered with the DLD in the Oqood system, the interim register before a title deed is issued at completion. Ask for your Oqood registration and check it in the Dubai REST app. Registration is what makes your purchase official.

Step 6: Check the developer’s track record and the project’s progress

Look at the developer’s completed projects and how their handovers compared with the original schedule. During construction, follow the project’s completion percentage in DLD records.

Buying an off-plan resale?

• Get a statement of account from the developer showing what has been paid and what remains.
• The developer issues a no-objection certificate (NOC) for the resale.
• The transfer is registered with the DLD, and only then is the seller paid.

Our guide to how off-plan resale payments work explains the numbers in detail.

Red flags: stop and walk away if…

• You can’t find the project or developer in DLD records.
• You’re asked to pay cash or into an account that isn’t the project’s escrow account.
• Returns are “guaranteed” verbally but not in the SPA.
• A resale seller wants payment before the developer’s NOC and DLD transfer.
• You’re pushed to book today, before seeing the SPA.

Frequently asked questions

How do I know an off-plan project in Dubai is genuine?

Check that the developer and project are registered with the Dubai Land Department (via the Dubai REST app or DLD website), and that payments go into the project’s escrow account.

What is an escrow account?

A DLD-supervised bank account for a specific project. Buyers’ payments are held there and released to the developer as construction progresses.

What is Oqood?

The DLD’s register for off-plan sales. Your purchase is recorded there until the title deed is issued at completion.

Are guaranteed returns real?

Only if they are written into your contract, and even then, understand who is guaranteeing them and for how long.

Umar’s take

Off-plan can be a great way to buy in Dubai, and the escrow system protects buyers far better than many people realise. The problems almost always start when buyers are rushed into paying outside that system, or believe promises that were never written down. Check the registration, follow the money into escrow, and read the SPA. If you’d like a second pair of eyes before you commit, that’s exactly what I’m here for.

General guidance, not legal advice. Procedures can change; confirm current requirements with the Dubai Land Department.

More guides to protect yourself in Dubai

• Renting: How to Avoid Rental Scams in Dubai
• Buying a ready property: How to Avoid Scams When Buying Property in Dubai
• What it really costs to buy property in Dubai

Want a second pair of eyes before you pay anything? Tell Umar what you're looking at or WhatsApp +971 58 675 5986.