Off-plan real estate in Dubai denotes that construction has not yet begun and is still in the planning stages or possibly at the conception stage
Initial registration means registering real estate sales contracts and other legal actions off-plan before transferring them to the real estate registry, and it includes properties purchased off-plan or ready-made properties for which an initial sale certificate is issued indicating the registration of a property. This aims to preserve the rights of owners and investors.
Off-plan real estate refers to a property that has been contracted for but has not yet been constructed. Investing in off-plan developments in Dubai is more affordable for prospective investors than buying a ready-made property, which is more pricey.
The developer must adhere to a number of regulations set out by the Real Estate Regulatory Authority (RERA) in order to assist guarantee that an off-plan project is completed. One of them stipulates that the developer must own all the land needed for the project. Additionally, the developer is required to finish 20% of the project prior to off-plan sales, deposit 20% in an escrow account, or give a 20% bank guarantee down payment. In addition to following the protocols, RERA mandates that contractors provide a 10% performance guarantee.
In Dubai, there is no age restriction on who is allowed to own property. However, a judgment issued by the competent judge approving the sale of the real estate or share of the minor issued from the Awqaf and Minors’ Affairs Foundation for citizens holding a registration extract (Khulasat Qayed) from Dubai and from the competent court for the rest of the categories shall be submitted in the event that a person wishes to sell, donate, or mortgage a property owned by a minor, in whole or in part. When a minor (someone under the age of 21) buys real estate, the legal guardian must sign the contract on their behalf.
As soon as they acquire a certificate of completion from the appropriate authorities, developers are required by law to register finished projects with the Dubai Land Department. As a result, the completely paid-for real estate units will be moved from the initial register to the Real Estate Registry, where the investor will get a title deed certificate.