What is an SPA in Dubai? Sale and purchase agreement

Quick answer

The SPA, or Sale and Purchase Agreement, is the contract you sign with the developer when buying off-plan in Dubai. It sets the unit, the price, the payment plan, the expected handover date and what happens if either side defaults. It is signed after the booking and the developer registers it with the DLD, in Oqood, within 90 days. You can sign it from any country.

What the SPA is and when you sign it

SPA stands for Sale and Purchase Agreement. On an off-plan purchase the usual path is: you hold the unit with a booking form, pay the down payment and then sign the SPA. That closes the purchase.

Dubai law gives it real weight. The developer must register it in the DLD’s Oqood register within 90 days of signing, and an unregistered off-plan sale is not valid. The same law does not allow units to be sold in a project without land and approvals.

What the SPA covers

Each developer has its own template, but most follow the same order:

The parties and the unit: your name as on your passport, the building, floor, number, type and size, often with a floor plan.
Price and payment plan: how much you pay and when, by date or construction stage, always into the project’s escrow account.
Fees: who pays the 4% DLD fee and the developer’s own charges, such as the admin fee.
Expected handover date and any grace period.
Size and what happens if the final measurement differs.
Resale before handover and its conditions.
Handover, warranties and when your service charge starts.

What the SPA cannot change

Some protections come from the law and no contract can reduce them:

Your payments go into the project’s escrow account, as Law No. 8 of 2007 requires.
If the finished home is larger, the developer cannot charge you more. If it is smaller, it must compensate you unless the difference is minimal.
Under Law No. 6 of 2019 the developer repairs structural defects for 10 years from completion and installations for 1 year from handover.
If a buyer misses a payment, the law sets the process: notice to the DLD and 30 days to catch up before the developer can act.

We go through it clause by clause in the SPA guide.

Signing the SPA from abroad

You do not need to fly to Dubai. Depending on the developer, the SPA is signed electronically or through someone holding a power of attorney. The UAE is not part of the Apostille Convention, so a power of attorney is legalised in a chain: notary, your foreign ministry, the UAE embassy and the UAE Ministry of Foreign Affairs.

Most buyers sign electronically and pay the down payment by bank transfer. Dubai is on UTC+4 all year, 4 hours ahead of London in winter and 3 in summer, and 9 hours ahead of New York in winter and 8 in summer.

Before you sign

Read the whole SPA, including the annexes with the floor plan and payment schedule.
Check the payment plan is the one you were offered.
See who pays the 4% DLD fee and what the developer charges.
Find the handover date and grace period.
Read the resale clause if you plan to sell before handover.

We walk you through the SPA before you sign. For a legal review of the contract, speak to a lawyer.

Frequently asked questions

What is an SPA in Dubai?

The Sale and Purchase Agreement, the contract you sign with the developer. It sets the unit, price, payment plan and handover date.

When is the SPA signed?

After you book the unit and pay the down payment. The developer registers it in Oqood within 90 days of signing.

Can I sign the SPA without travelling to Dubai?

Yes. Most are signed electronically. If the developer needs a paper signature, you can sign through a legalised power of attorney.

What is the difference between the SPA and Oqood?

The SPA is the contract. Oqood is the DLD register where that contract is recorded, proving the purchase is in your name.

What if the home is smaller than I bought?

The developer must compensate you unless the difference is minimal. If it is larger, it cannot charge you more.

Learn more

Other key terms

Andy Mederos · Broker and investor in Dubai