Developers must satisfy qualification, project licensing, and escrow-account requirements before launching an off-plan development.
Off-plan sales and leasing enable developers to market and finance projects before construction is completed. However, an off-plan project is not treated as an ordinary real estate transaction.
The activity is regulated by the Law of Selling and Leasing Off-Plan Real Estate Projects, its Implementing Regulations, and the requirements issued by the Real Estate General Authority.
A developer must be registered in the Registry of Developers and satisfy the applicable qualification requirements before engaging in off-plan sales or leasing. A separate licence must also be obtained for each project.
Licensing requirements may include evidence of land ownership or lawful development rights, a valid building permit, approved architectural and engineering plans, a feasibility study, a construction and delivery schedule, agreements with the landowner where applicable, proposed sale agreements, and escrow-account arrangements.
An off-plan project may not be advertised or promoted through local or international media or exhibitions unless the required project licence has been obtained.
A separate escrow account must be established for each project. Amounts received from purchasers, lessees, or project financiers must be deposited into that account and used for the licensed project in accordance with the applicable disbursement controls.
The sale or lease agreement should clearly describe the unit and its specifications, the price and payment schedule, the expected completion date, permitted extensions, handover procedures, defect obligations, and termination rights.
Early legal review helps ensure consistency between project documents, marketing materials, purchaser agreements, and financing arrangements, reducing the risk of licensing delays, regulatory violations, and purchaser disputes.