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Top 10 RERA Rules Every Dubai Property Buyer Should Know
Dubai’s property market has for a long time garnered global interest as a potential investment due to its profitable opportunities, recognizable buildings, and, of course, the surrounding eco-system of investor friendliness. From tall towers to man-made islands that are developing villas, Dubai has a vast mix of properties for both end users and investors alike.
In terms of keeping their constituents’ confidence, preventing fraud and promoting a professional real estate sphere, Dubai was able to form the Real Estate Regulatory Agency (RERA) – a governing power, independent from the government, under the Dubai Land Department (DLD). RERA regulates who can sell real estate, and enforced numerous rules and regulations, making it mandatory for real estate professionals to comply in developing measurable standards and transparency related to the rights of the buyers, sellers, owners and renters.
Whether you are a first-time purchaser or a seasoned investor with properties around the world, understanding the basic rules of RERA will at least assist you in making your decision and to avoid any unnecessary or costly mistakes.
Allow us to share the Top 10 RERA rules every property purchaser in Dubai MUST know:
Recommended Read: Real Estate Rules and Regulations in Dubai (You Should Know Before Buying)
1. Invest Only in RERA-Registered Developers
Why this is important:
Take the time to confirm that the developer you’re looking to invest with is registered and approved with RERA before moving forward. This isn’t a bureaucratic hoop, it’s a protection.
What it means:
- The developer has fulfilled all financial and legal obligations.
- The project has received approval and ongoing compliance oversight from DLD and RERA.
- There is a level of protection for buyers in the event of disputes or contractual default.
How to check:
Check the developer’s registration status using the Dubai REST app or DLD website. If they aren’t a registered developer, move on to your next option.
2. Escrow Account for Off-Plan Properties
What is an escrow account?
An escrow account is a special bank account where a builder must deposit all payments made by the buyer. The funds in the escrow account can only be used for the specific development the funds were received for.
Why it is important:
This law from RERA significantly reduces the risk of:
- Developers diverting your funds to other developments
- Delays in completion of a project due to stolen funds
- Buyers losing money should plans for the project be shelved
Bonus:
The developer will only gain access to the escrow funds in phases connected with real construction progress and with the authority of certified auditors.
3. Oqood Registration: Your Interim Title
When you purchase off-plan property, you don’t get the title deed immediately. Instead, you will be issued an Oqood registration certificate which will be regarded as an interim title deed until the construction is complete.
Why it is important:
- Legally protects your rights to the unit whilst it is being built.
- Prevents a developer from selling the same unit to multiple purchasers.
- Provides the developer with evidence of ownership for resale or to approve mortgage applications.
Tip:
Make sure the developer obtains Oqood registration on your behalf after you have signed the sales agreement and made a deposit / initial payment.
4. Standard Sale Contracts (Fill in the Blanks Form F)
To prevent ambiguity or hidden meanings, RERA has mandated the use of standard sales contracts which requires some minor amendments. The most important is Form F which is also called a “Memorandum of Understanding” (MoU).
What it covers:
- The price of the property and your payment obligations
- Delivery date and timetable to completion
- Both parties rights, obligations and penalties
Why it is good:
Standard contracts guarantee fairness to all concerned, legally enforceable and ensures your entitlements are protected through the application of a standard sales contract. Ensure that before signing you are satisfied and understood every clause in the contract.
5. Strict Property Marketing Guidelines
Real estate marketing in Dubai is not a wild west. RERA has implemented strict advertising rules that developers and brokers must follow.
What you must have:
- Accurate and verified information about the property
- Clarity about costs and timelines for the project
- No misleading photos or hyperbole
How these protect you:
You’re unlikely to have unreasonable promises or buy something that looks nothing like what you viewed in their brochure.
Consequences for the developer’s violation:
They will incur hefty fines, have their license suspended, or will be blacklisted.
6. RERA-Registered Agents Only
You should only be using RERA registered, licensed real estate agents. All agents are required to have a broker ID card and be appropriately licensed to perform real estate transactions within the confines of RERA’s guidelines.
How to check:
Confirm the agent’s license number through the Trakheesi system.
Why this is important:
- Reduces your likelihood of being scammed
- Gives you a professionally-run company
- Provides a way to have complaints addressed, if necessary
The red flag:
If an agent hesitates to provide their RERA ID, think twice before proceeding with them.
7. Rent Dispute Resolution and the Rental Index
If you are buying to rent out your property, it is essential to be aware of the Rental Index and the Rent Disputes Settlement Centre in Dubai.
Key Points:
- The Rental Index oversees how much a landlord can raise a tenant’s rent each year.
- Landlords cannot simply raise rents at their discretion.
- Tenants and landlords have equal standing if rent disputes arise.
Benefit for landlords (and buyers):
By knowing guidelines and rental potential, you understand all of your rights, can better gauge your ROI, and have less of a headache from tenants in regards to any legal negotiation.
8. Cooling Off Period and Refund Provisions
The cooling-off period may not apply to every transaction completed with a developer, however, some off-plan contracts come with cooling-off periods (usually 7 days depending on the developer).
What it means:
- You can get out of the contract within the cooling-off period without any crippling consequences.
- You may get a full or partial refund depending on your agreement.
Why it is useful:
There are times when people are impatient buyers or may need a moment to consider the deal. A cool-off provision signed off by RERA allows you a window of time to take a little break.
Tip:
Make certain to check your sale agreement or ask your agent if a cooling-off provision exists, before you sign the contract.
9. Project Delays Penalties
RERA’s role is to actively check on construction progress, and will impose penalties on developers who delay a project without just cause.
What can occur?
- The developer will incur a fine.
- RERA can order compensation to buyers.
- Very serious situations could result in cancellation of the project with the remaining escrow funds returned to the investors.
Why is this important?
It keeps developers accountable and gives buyers the right to legally recoup their investment if the agreed upon timelines are not being met.
Best practice:
Before purchasing, it is advised to request the estimated handover date from the developer, and confirm RERA has approved it.
10. Handover and Final Payments Processes
As a project gets closer to completion, RERA has a defined handover process and details on the final installment payment as well.
At handover, buyers should always:
- Inspect the property to compare quality and ensure it matches the specifications
- Document any deficiencies remaining or work that is incomplete.
- Not pay the final installment until the property meets the agreed upon specifications in your contract.
Final steps:
Once the buyer completes their inspection, makes their last payment, receives the inspection report from the handover, and gets their title deed documents registered.
Tip:
Take your time when inspecting the property at handover; don’t rush the process and properly verify what condition your new home or investment unit is in.
Conclusion: Invest Smart, Stay Informed
Dubai’s property market is a goldmine — but only for those who are well-informed and prepared. The scope of RERA’s comprehensive regulations is aimed, ultimately, at creating a fair, transparent, and safe environment for everyone — perhaps most importantly, buyers.
By knowing the top 10 RERA rules above you can:
- Protect your investment
- Tailor your decision-making legal framework
- Streamline transaction processes
- Foster long-term confidence in the market
Take-aways:
When planning a purchase be sure to consult a RERA certified agent or legal advisor. And use the many readily available RERA digital platforms including, the Dubai REST App, Trakheesi and the DLD website to perform due diligence.
Dubai’s real estate landscape is highly regulated — but those who make informed decisions will prosper.
Be informed. Be protected. Be empowered.
For more information on investing in Dubai real estate, get in touch with our highly experienced professionals at TAQ Global Properties:
Location: Office 1003, Dusseldorf Business Center, Al Barsha, Dubai, United Arab Emirates
Contact: +971 44561405
Email: info@taqproperties.ae
