What an SPA covers
An off-plan SPA usually sets out the unit, the price, the payment plan and its milestones, the expected completion date, the escrow account for payments, and each side's obligations and remedies. DLD calls it the sale and purchase contract; "SPA" is the market's shorthand.
Registration makes it count
Law No. 13 of 2008 created Dubai's interim real property register. Article 3 makes any off-plan sale that is not registered in it void, and the developer must register the contract through Oqood within 90 days of signing.
If the buyer defaults
Article 11 of Law No. 13 of 2008 has been amended several times, and the current text comes from Law No. 19 of 2020. After DLD notifies the buyer and 30 days pass:
| Project completion | What the developer may do |
|---|---|
| Over 80% | Keep the contract and claim the balance, have DLD auction the unit, or cancel and keep up to 40% of the unit value |
| 60%–80% | Cancel and keep up to 40% of the unit value |
| Under 60%, work started | Cancel and keep up to 25% of the unit value |
| Not started for reasons beyond the developer's control, or project cancelled by RERA | Refund all payments |
Any amount above those caps must be refunded within one year of cancellation or within 60 days of reselling the unit, whichever comes first. This is a summary, not legal advice; read the law and take advice for a real case.
On Nogbase
Nogbase records the EOI and reservation steps that lead to the SPA, so the developer's team knows which broker, buyer and unit each contract belongs to.
Frequently asked questions
Does an SPA need to be registered?
Yes. Law No. 13 of 2008 makes any off-plan sale that is not registered in the interim real property register void. The developer registers it through Oqood within 90 days of signing.
What happens if a buyer stops paying?
Article 11 of Law No. 13 of 2008, as amended by Law No. 19 of 2020, applies. DLD gives the buyer 30 days' notice, and what the developer may then do depends on completion. Above 80%, it can keep the contract and claim the balance, ask DLD to auction the unit, or cancel and keep up to 40% of the unit value. At 60–80%, it can cancel and keep up to 40%. Below 60% with work started, it can keep up to 25%. If work has not started for reasons beyond the developer's control, or RERA cancels the project, it must refund everything.
Can a developer charge extra fees on resale?
Law No. 13 of 2008 bars developers from charging fees on sales or resales beyond the administrative costs DLD approves.
Sources
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