RERA: Buyer Protection in Dubai Real Estate

RERA delivers one of the world's most robust buyer protection frameworks for off-plan property: mandatory escrow, SPA registration, and real compensation mechanisms. Here's how the system works in practice.

Key Facts

• Escrow обязателен для всех off-plan проектов по закону ОАЭ № 8/2007
• SPA регистрируется в DLD через систему Oqood — это юридическая защита вашего права
• RERA проводит ежеквартальные инспекции прогресса строительства
• При задержке >6 мес. — право на жалобу и компенсацию через DLD
• Реестр одобренных застройщиков доступен на dubailand.gov.ae

Step-by-Step Process

1. Verify the developer in the RERA registry

   Go to dubailand.gov.ae → Real Estate Regulatory Authority → Approved Developers. The developer must appear in the registry.

2. Confirm the Escrow account is open

   Under UAE Law No. 8/2007, all off-plan projects are required to maintain an escrow account with an approved bank. The account number must be stated in the SPA.

3. Register the SPA with DLD (Oqood)

   Initial registration is done through Oqood (via the Dubai REST app or a DLD office). Cost: 4% of the purchase price + AED 430 registration fee.

4. Track construction progress

   RERA conducts quarterly developer inspections. Check status at reta.rera.gov.ae or Dubai REST.

5. In Case of a Violation — File a Complaint with DLD/RERA

   Submit a complaint through DLD Complaints → Developer Delay. RERA can appoint a substitute developer or order a full refund.

Frequently Asked Questions

What Is RERA?

RERA (Real Estate Regulatory Agency) is Dubai's real estate regulator, operating under DLD. It licenses developers, brokers, and property management companies, mandates escrow accounts for off-plan projects, and maintains the official transactions registry. Established in 2007.

How to Vet a Developer Before You Buy

1) The RERA developer registry at dubailand.gov.ae 2) Project status at reta.rera.gov.ae 3) Confirmation of an active escrow account (the account number must appear in the SPA) 4) The developer's track record of completed projects via DLD. This takes 20–30 minutes and is essential before any off-plan purchase.

What to Do If a Developer Delays Handover

Start by contacting the developer for a revised handover date. If the delay exceeds 6 months with no explanation, file a complaint with DLD via Dubai REST. RERA has the authority to require the developer to pay compensation or terminate the contract with a full 100% refund.

What Is an Escrow Account and How Does It Protect Me?

An escrow account is a dedicated bank account that holds your funds until specific conditions are met — tied to construction milestones. The developer only receives money as verified progress is confirmed by RERA. Your funds are protected even in the event of developer insolvency.

Can You Cancel an Off-Plan Contract?

Yes, under certain conditions: a delay of more than 12 months, a material change to the project, or developer bankruptcy. Refunds through DLD: 100% if the project is cancelled, and from 40% upward for voluntary termination depending on the construction stage. All terms are set out in the SPA.