The SPA is the sale and purchase agreement you sign with the developer. It sets the unit, the price, the payment plan, the expected handover date and what happens if either side defaults. The developer must register it with the DLD, in Oqood, within 90 days of signing, and an off-plan sale that is not registered is void. Some clauses are set by Dubai law, such as default or the unit area. Others, such as the grace period or resale, are set by each developer.
In this guide11 sections
- What is the SPA and when is it signed?
- The parties and the unit
- Price, payment plan and fees
- Handover date and grace period
- Area: what if the unit is smaller?
- What if you are late with a payment?
- The resale clause
- Handover, warranties and service charges
- Signing the SPA from the UK or the US
- Things to keep in mind
- Frequently asked questions
| Clause | What it sets | What to check |
|---|---|---|
| Parties and unit | Buyer, developer, unit, floor and area | That your details match your passport and the unit is the one you booked |
| Price and payment plan | Total price in AED and each instalment by date or construction milestone | That it adds up to 100% and matches the offer |
| Fees | The 4% DLD fee, registration fees and developer fees | Who pays each one |
| Handover date | Expected date and grace period | What happens if it is exceeded |
| Area | The area sold | What happens if it ends up smaller |
| Default | Notices and consequences if you pay late | That it follows the DLD procedure |
| Resale | Conditions to sell before handover | Percentage paid and NOC fee |
| Service charges | When you start paying | The start date |
What is the SPA and when is it signed?
SPA stands for Sale and Purchase Agreement. On an off-plan purchase you sign it with the developer after booking and paying the down payment. Until then you have a booking form. With the SPA the purchase is done.
Dubai law gives this contract a lot of weight. Law No. 13 of 2008 requires every off-plan sale to be entered in the DLD’s interim register, and a sale that is not entered is void. That register is Oqood, and the DLD requires the SPA to be registered within 90 days of signing. The same law bans selling units in a project that does not have the land and the approvals, and makes any contract signed before then void.
To see how you get here, from the EOI and booking, read the guide to payment methods and EOIs.
The parties and the unit
The first page says who is buying and what. Check that your name and passport number match your document exactly. If two of you are buying, both names should appear with each share. If you buy through a company, the DLD also asks for the licence and the articles translated into Arabic.
Then comes the unit: project, building, floor, number, type and area. A unit plan is often attached. Check it is the one you booked, with the same orientation and parking spaces if any.
Price, payment plan and fees
The price is in dirhams. The payment plan says how much you pay and when, and whether each instalment is tied to a date or a construction milestone. What matters is that the SPA schedule matches the offer and that every instalment goes into the project escrow account, as Law No. 8 of 2007 requires.
This is how a 60/40 plan looks on an AED 1,000,000 home if you pay the DLD fee:
| Payment | AED | € | $ |
|---|---|---|---|
| Down payment, 10% | AED 100,000 | €24,238 | $27,229 |
| During construction, 50% | AED 500,000 | €121,192 | $136,147 |
| At handover, 40% | AED 400,000 | €96,954 | $108,918 |
| DLD fee, 4% | AED 40,000 | €9,695 | $10,892 |
Approximate figures, for illustration only.
The DLD fee is 4% of the price and the rules split it equally between buyer and seller unless agreed otherwise. Off-plan, the buyer usually pays it, and some developers cover it as an incentive. The SPA says who pays and also lists the developer’s own fees, such as the admin fee. See the guide to buying costs and payment plans, and try your numbers in the off-plan calculator.
Handover date and grace period
The SPA sets an expected handover date. Many contracts add a grace period, a few extra months in which the developer can hand over without penalty. Check how long it is, whether there is compensation after it and how it is worked out.
Your money also has protection that does not depend on the contract. What you pay goes into the escrow account, and the bank only releases it as construction progresses. If RERA cancels the project, or if work never starts for reasons outside the developer’s control, the law requires buyers to be refunded in full. What you can claim in each case is in the guide to off-plan delays and cancelled projects. You can follow construction progress in Dubai REST, and we show you how in the guide to checking an off-plan project is safe.
Area: what if the unit is smaller?
This clause is worth reading carefully. Law No. 13 of 2008 treats the area sold as correct. If the finished unit measures larger, the developer cannot charge you more. If it measures smaller, the developer must compensate you, unless the difference is minor.
Some SPAs set a tolerance as a percentage. Check what it is and how compensation would be calculated, so you know what to expect on handover day.
What if you are late with a payment?
Dubai law sets the procedure and the SPA cannot skip it. If a buyer does not pay, the developer must notify the DLD. The DLD gives you 30 days to catch up and tries to broker a settlement. Only if that fails can the developer act, and what it can do depends on how far the project is built:
- Over 80% complete. It can keep the contract and claim the balance, ask the DLD to auction the unit, or terminate and keep up to 40% of the price.
- Between 60% and 80%. It can terminate and keep up to 40% of the price.
- Work started and under 60%. It can terminate and keep up to 25% of the price.
Anything above those limits must be refunded within one year or within 60 days of reselling the unit, whichever comes first. And you can always go to court.
The best protection is a payment plan you can cover comfortably. We help you choose it with your own numbers before you book.
The resale clause
The SPA says whether you can sell before handover and on what terms. To resell you always need the developer’s NOC, which confirms you are up to date with payments. What changes between developers is the rest: the share of the price you must have paid, the NOC fee and the timings. It depends on each developer and we confirm it for each project before you buy. We explain it step by step in the guide to selling before handover.
Handover, warranties and service charges
The last part of the SPA covers handover: how you are notified, what you must pay before getting the keys and how the property is inspected. That is where snagging comes in, the defects check before you accept handover.
Some warranties do not depend on the contract. Law No. 6 of 2019 makes the developer liable for 10 years for structural defects, from the completion certificate, and for 1 year for installations, from handover. Any SPA clause that cuts them back is void.
Finally, check when you start paying the service charge. We cover it in the guides to handover and snagging and service charges by area.
Signing the SPA from the UK or the US
You do not need to fly to Dubai to sign. Depending on the developer, the SPA is signed electronically, at its office or by someone holding your power of attorney. The UAE is not part of the Apostille Convention, so that power must be legalised in a chain: notary, your foreign ministry, the UAE embassy and the UAE Ministry of Foreign Affairs. Dubai is on UTC+4 all year.
How to sign a Dubai SPA from the UK
Most buyers sign electronically and send the down payment by transfer in pounds or dirhams. Dubai is 4 hours ahead of the UK in winter and 3 in summer. If you are UK resident for tax, HMRC normally taxes the rent from the property, usually reported through Self Assessment.
How to sign a Dubai SPA from the US
Paying from a dollar account means no currency risk against the dirham, which is pegged to the dollar. You sign electronically or with a power of attorney legalised at the UAE embassy in the US. New York and Miami are 9 hours behind Dubai in winter and 8 in summer. The IRS taxes US citizens and residents on worldwide income, so the rent is reported there.
Things to keep in mind
- Read the whole SPA before signing, including the annexes with the plan and the payment schedule.
- Check that 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, the grace period and what happens after it.
- Check the area tolerance.
- Read the resale clause if you plan to sell before handover.
- Keep the signed SPA and the Oqood certificate that will reach you by email.
We explain the SPA before you sign and follow the Oqood registration until you have the certificate. For a legal review of the contract, speak to a lawyer.
Frequently asked questions
What is an SPA in Dubai?
It is the sale and purchase agreement you sign with the developer. It sets the unit, price, payment plan, handover date and what happens if either side defaults.
What should I check in each SPA clause?
The price and payment plan, the handover date and grace period, the unit area, what happens if you miss a payment and the resale clause.
When is the SPA registered?
The developer registers it with the DLD, in Oqood, within 90 days of signing. You receive the certificate by email.
What if the unit is smaller than I bought?
The developer must compensate you unless the difference is minor. If it is larger, the developer cannot charge you more.
Can I sell before handover?
Yes, with the developer’s NOC. Conditions such as the minimum percentage paid depend on each developer and we confirm them for each project.
Can I sign a Dubai SPA from the UK?
Yes. Most buyers sign electronically and pay by transfer from a UK account. If the developer needs a wet signature, you can sign through a legalised power of attorney.
Can I sign a Dubai SPA from the US?
Yes. You sign remotely and pay in dollars with no currency risk, because the dirham is pegged to the dollar.
