Buying an off-plan resale in Dubai: how the payments actually work

The short answer: when you buy an off-plan property from its current owner rather than from the developer, you pay the owner for what they have already paid (plus or minus any premium), you take over the remaining instalments to the developer, and you cover the transfer costs. Here is how each part works, and what to check before you commit.

What an off-plan resale is

An off-plan resale is a property that is still under construction, bought from someone who purchased it from the developer earlier. You step into their contract: the same unit, the same developer payment plan, the same expected handover date.

The three parts of the payment

• The seller’s paid amount. Whatever the seller has already paid the developer, plus any premium (or minus any discount) between the original price and today’s agreed price. This is usually paid at transfer, so it typically needs to be cash.
• The remaining developer instalments. These continue on the original payment plan until handover. You pay them to the developer, not to the seller.
• Transfer costs. The Dubai Land Department transfer fee (4% of the price) plus registration and administration fees, the developer’s no-objection certificate (NOC) fee, and the brokerage fee, which is commonly 2% plus VAT.

Why off-plan resales usually suit cash buyers

Mortgage options for properties that are not yet complete are limited, and the seller’s paid amount is normally settled at transfer. If you need financing, plan for it carefully or consider ready properties instead.

What to check before you commit

• A statement of account from the developer showing exactly what has been paid and what remains.
• The developer’s resale policy. Many developers only allow resale once a set percentage of the price has been paid, and each charges its own NOC fee.
• The registered contract (Oqood) and the sales and purchase agreement, including the handover date and any penalty or delay clauses.
• The construction status, and how the expected handover compares with the original schedule.
• A valid advertising permit (Trakheesi) on any listing you respond to.

Umar’s take

Off-plan resales can be a smart way to buy a specific unit, position or price you can’t get from the developer anymore. But the numbers only make sense when you see all three parts together: the cash you need now, the instalments still to come, and the transfer costs. Before any viewing, I’ll put those figures side by side so you know the real commitment, and I’ll tell you if a ready property would serve you better.

This guide is general information, not legal or financial advice. Fees and developer policies change, so always confirm current figures before you commit.