Oqood explained: reselling off plan property in Dubai

Buying off plan in Dubai means buying a home that does not exist yet. Until it is built and handed over, your rights are recorded in a different way from a finished property, through a system called Oqood. Whether you plan to sell an off plan unit before completion or buy one from an existing owner, understanding Oqood is the first step. This guide explains what it is, how an off plan resale works and what to check before you commit.

What is Oqood?

Oqood is the interim register for off plan property in Dubai. It is run by the DLD (Dubai Land Department), the government body that records property ownership in the emirate, with oversight from RERA, its regulatory arm. When you buy a unit from a developer, the sale is entered on this register and you receive an Oqood certificate as evidence of your rights in the property.

Registration is far more than a formality. Under Dubai Law No. 13 of 2008, which created the interim register, a sale of off plan property that is not entered on the register is void. In practice, the Oqood record is what tells the DLD, banks and future buyers who holds the rights to a unit while it is under construction.

Oqood and title deed: what is the difference?

A title deed is the final ownership certificate the DLD issues for a completed property. Oqood is the interim record that comes before it.

• Oqood records your rights to a unit that is still being built, under your Sale and Purchase Agreement (SPA) with the developer.
• A title deed records ownership of a finished property on the permanent register, and is the document used for resale, mortgages and inheritance after handover.

Until handover, the developer remains closely involved in every transaction, which is why their approval matters so much on a resale.

How an off plan resale works

Selling an off plan unit before handover is often called an assignment, because the seller passes their contract with the developer to the buyer. The buyer steps into the seller's position, including any remaining instalments on the payment plan. A typical sequence looks like this:

• The seller checks the resale terms in their SPA and confirms all instalments due so far have been paid.
• Buyer and seller agree the price and terms in a memorandum of understanding. In Dubai, the standard version is known as Form F.
• The seller applies to the developer for a NOC (No Objection Certificate) approving the sale.
• Both parties, or their representatives, attend a trustee office, an approved DLD registration centre, where the transfer is completed and the Oqood record is updated in the buyer's name.

For a wider view of how transfers run from offer to registration, see our guide to the Dubai property transfer process.

Developer NOC, payment thresholds and fees

The developer's NOC

The developer's NOC is what unlocks an off plan resale. Without it, the DLD will not process the transfer. Before issuing one, developers usually check that the account is paid up to date and that the seller meets their resale conditions.

Many developers only allow a resale once a minimum share of the purchase price has been paid, or once construction reaches a certain stage. These rules vary from developer to developer and even between projects, so always check the SPA and confirm the position with the developer in writing. As a guide, many developers require between 30% and 40% of the purchase price to have been paid. Our article on what an NOC is explains how NOCs work in more detail.

Fees to budget for

An off plan resale involves several separate costs, and it is worth agreeing who pays what before anything is signed. Typical items include:

• DLD transfer fee: 4% of the sale price
• Trustee office fee for an Oqood transfer: AED 5,250
• Developer NOC or assignment fee: set by the developer, typically between AED 0 and AED 5,250
• Brokerage commission, where an agent is involved: commonly 2% of the sale price, as agreed in the Form F

Who bears each cost is a matter for negotiation and should be set out clearly in the Form F.

What buyers should check

• The project is registered with the DLD and buyer payments go into the project's escrow account.
• The Oqood registration is valid and shows the seller as the current holder.
• The seller's payments are up to date and the developer is willing to issue an NOC.
• Which instalments remain and when they fall due, since you will take these over.
• The expected completion date and what the SPA says about delays.
• The agent you are dealing with is registered with RERA.

From Oqood to title deed at handover

When a project is complete, it moves from the interim register to the permanent register. At handover, the owner settles any final amount due to the developer and the DLD issues a title deed in their name, which replaces the Oqood record. If the purchase is financed, the bank's mortgage is registered against the property as well. Requirements vary by developer, so ask for the handover checklist early. Title deed issuance costs up to AED 580.

Get your off plan resale right

An off plan resale brings together the seller, the buyer, the developer, the DLD and often a bank, all working to the developer's rules. Chartered Conveyancing manages the process from NOC application to trustee office attendance, so nothing is missed along the way. This article is general guidance, not legal advice. Enquire today to discuss your off plan sale or purchase.