Off-Plan SPA, Oqood and Escrow Explained

The sale and purchase agreement (SPA) is your contract with the developer; Oqood is the Land Department register that records your purchase before the title deed exists; escrow is the protected account your payments go into. Understanding all three is the core of buying off-plan safely.

Updated 27 October 2026 · 1 min read

SPA = your contract with the developer. Oqood = the official interim registration of your purchase. Escrow = the protected project account your payments must go into.

The SPA: what to read closely

  • Unit details: unit number, floor, size and how size changes are handled.
  • Price and payment plan: every instalment and its trigger (a date or a construction stage).
  • Completion date: the expected date and any grace period.
  • Specifications: finishes, appliances and the developer’s right to substitute equivalents.
  • Late payment: penalties and what happens if you miss instalments.
  • Delays and termination: your rights if the developer is late, and the developer’s rights if you default.
  • Resale: conditions for selling before completion.

Oqood registration

Once the SPA is signed, the developer registers the sale in the Land Department’s Oqood system. This gives your purchase an official record before the title deed is issued, and it is when the 4% DLD fee is usually paid. Ask for your Oqood certificate and keep it safe.

Escrow: where your money goes

Dubai law requires off-plan payments to go into a project escrow account at an approved bank. The developer can only draw funds in line with construction progress. Always check that the account number in your payment instructions matches the escrow account in the SPA and the official project record.

Common mistakes to avoid

  • Signing the SPA without reading the delay and termination clauses.
  • Paying by transfer to an account that is not the escrow account.
  • Not receiving or keeping the Oqood certificate.

This guide is general information, not legal, tax, financial or lending advice. Fees, rules and procedures change and depend on the property, the parties and the contract. Confirm current details with the relevant authority and qualified advisers before acting.

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Common questions

What is an SPA in Dubai?

The sale and purchase agreement is the contract between an off-plan buyer and the developer. It sets the price, payment plan, completion date, specifications and remedies.

What does Oqood mean?

Oqood is the Dubai Land Department's interim register for off-plan property, which records your purchase before the title deed is issued.

Why does escrow matter?

Escrow protects buyers' payments: the developer can only release money from the project account in line with construction progress.

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