Off-plan property in Dubai: how escrow protects buyers

Published 8 November 2026 · 5 min read

Buying off-plan means paying for a property before it is built. Dubai protects these payments through Law No. 8 of 2007 on Escrow Accounts for Real Estate Development, which every buyer should understand before signing.

What the law requires from developers

• The developer must be entered in the Dubai Land Department's register of developers.
• Off-plan units may not be advertised, in Dubai or abroad, without written approval from the Dubai Land Department.
• Off-plan sales require an escrow account with an accredited escrow agent, with one account for each project.
• Payments from buyers and financiers go into that escrow account.

How your money is protected

Funds in the escrow account cannot be attached by the developer's creditors. The law also requires a portion to be retained for a period after units are registered to buyers, and sets out duties to protect buyers if a project stalls. Breaches carry penalties, including fines and imprisonment.

What to check before you pay

1. That the developer and the project are registered with the Dubai Land Department.
2. That the advertisement or brochure is backed by an approval from the Dubai Land Department.
3. That your payments go into the project's escrow account, not a personal or general company account.
4. That the sale and purchase agreement matches what was promised in writing, ideally after a legal review.

Where legal advice helps

Off-plan contracts set out payment plans, handover dates and remedies for delay. A legal review before signing, and a translation of the agreement if it is not in a language you read fluently, helps you understand exactly what you are committing to.