Dubai Property Due Diligence Checklist Before You Pay

The safest order in any property purchase is to verify first and pay second. The risks this avoids are specific: a reservation fee sent to the wrong account, a deposit on a unit the seller cannot transfer, or an instalment for a project that is not properly registered.

The checks below can be done before you pay anything. Most use Dubai Land Department (DLD) services on its website or in the Dubai REST app, for which DLD lists no fee. Keep a dated screenshot or PDF of each result.

If anything does not match, such as a developer name, a permit number or a unit area, stop. Ask for a written explanation before you continue.

This website is an information service and not a broker. If you send an enquiry through it, the request is passed to licensed agents. The same checks apply to any property they present to you.

Dubai law sets several conditions before a unit can be sold off-plan:

• Law No. 8 of 2007 requires a developer to be entered in DLD's Register of Real Estate Developers and licensed (Article 4). Advertising or exhibiting off-plan units needs DLD's written authorisation (Article 5).
• Law No. 13 of 2008 prohibits a developer from selling off-plan before taking possession of the land and obtaining the required approvals (Article 4).
• DLD's FAQ states that a project may be launched or announced only after its registration procedures are complete and the accreditation certificate is issued.

To check a project, use DLD's Project Status Enquiry or Project Status (Mashrooi) in the Dubai REST app. It shows the project number, the developer's name and status, the registration, start and completion dates, inspection details, the management company and the escrow bank.

Compare the developer's registered name with the name on the reservation form and the SPA. They should be the same legal entity.

Under Law No. 8 of 2007, payments from off-plan buyers must go into an escrow account opened in the name of the project with an escrow agent registered by DLD. The main protections are:

• each project has its own escrow account (Article 9);
• the account is dedicated to building that project, and the developer's creditors cannot attach the money in it (Article 9);
• after the completion certificate, the escrow agent keeps 5% of the account until one year after the units are registered to buyers (Article 14);
• depositors may see their own accounting records and ask for copies (Article 12);
• if the project is not completed, the escrow agent must consult DLD and act to have it completed or to refund depositors (Article 15).

Pay only into the escrow account shown for the project in DLD's systems and in the SPA. DLD's brokerage practice guide requires brokers to instruct buyers to deposit money only into the project escrow account. Treat a request to pay a personal or broker account for an off-plan unit as a warning sign.

DLD's FAQ states that a broker must be registered in the brokers register and hold a broker card issued by RERA. Two DLD services, for which no fee is listed, help confirm this:

• E-card Verification (Dubai REST app) checks a broker's RERA card by card number.
• Verify License and Permits (DLD website or Dubai REST app) checks licences and permits issued through the Trakheesi system.

Every property advertisement needs a Trakheesi permit. Since 24 April 2023, RERA has required a Madmoun QR code on print and audiovisual advertisements. Scanning the code shows whether the advertisement is approved, which company placed it, the property's details and whether it has already been sold or rented. DLD advises buyers to deal only with advertisements that carry the code.

Put your arrangement with a broker in writing using Contract B, the standard buyer-broker agreement, including any commission you will pay.

For a resale, confirm that the seller holds what they are selling:

• Use DLD's Verify Title Deed service to confirm the title deed is valid, and the Property Status Enquiry for the unit's status.
• Check that the seller's name matches the title deed and their identification. If the seller is a company or acts through an attorney, ask for the trade licence or power of attorney and have a lawyer review it.
• Ask whether the property is mortgaged. A mortgage must be settled or handled through DLD's process for selling a mortgaged property.
• Compare the area on the title deed with the advertised area. Under Law No. 6 of 2019, service charges are calculated on the area recorded in the Real Property Register.
• Confirm which parking bays are included. The same law requires units to be registered together with their designated car parks.

The transfer also needs the developer's e-NOC and, in Mollak-managed buildings, the management company's eNOC. Ask the seller when these will be requested.

Service charges in jointly owned buildings are governed by Law No. 6 of 2019. A management entity may not charge owners without RERA approval (Article 27). Each owner's share is based on the unit's area relative to the whole property (Article 25). The owner is liable to pay unless the lease says otherwise, and remains liable if a tenant does not pay (Article 16).

Before you commit:

• Look up the RERA-approved rate for the building in DLD's Service Charge Index (Mollak), by project, usage and year.
• For a resale, ask for the service charge statement and any arrears. The management company's eNOC is needed to transfer a Mollak-managed property.
• Ask for the Building Management Regulation and the Master Community Declaration. The law makes them part of the title deed, and they set rules on the use of units and common areas.
• Ask whether district cooling is billed separately from service charges, and by which provider.

Have the SPA (off-plan) or Contract F (resale) reviewed by an independent lawyer before signing. Points worth checking:

• the legal names of the parties, the unit number, the area and the parking bays;
• the price, the payment schedule and the escrow account details;
• the completion date, any permitted extension and what happens if handover is late;
• area differences: Law No. 13 of 2008 (Article 12) treats the sold area as correct, bars a price increase if the area grows after handover, and gives compensation for a decrease that is not inconsequential;
• buyer default: under Article 11 of Law No. 13 of 2008, as amended in 2017, the developer must follow a DLD notice procedure, and the amount it may retain on termination depends on the project's completion percentage;
• which party pays the DLD registration fee, trustee fees and developer charges;
• handover conditions, defect obligations and any conditions on resale before completion.

This checklist is general information, not legal advice.