What Is an SPA in Dubai and What to Check Before Signing?
The SPA — Sale and Purchase Agreement — is one of the most important documents in a real estate deal. It defines the property details, the price, the payment plan, handover dates, the parties’ obligations and what happens if something goes wrong along the way.
The Common Mistake
Investors get excited about the price, the discount or the payment plan, but don’t read in depth the contract they’re signing. In the end, what counts is not the presentation — but what’s written in the documents.
The SPA is not a technical form — it’s the document that defines your deal
In a Dubai real estate deal, especially off-plan, the SPA is a central document. It should reflect everything agreed: the property details, purchase price, payment plan, handover date, specification, rights, obligations and special terms.
So before signing, it’s important to stop and verify the contract truly matches what was presented to you: not just in the headlines, but in the numbers, the dates, the small clauses and what wasn’t said in the presentation.
What is an SPA?
An SPA is a sale and purchase contract between the parties to the deal. In off-plan it’s usually signed between the buyer and the developer. In secondary / resale, the deal is between a seller and a buyer, and there’s usually a sale contract suited to the ownership transfer process.
The contract shouldn’t be disconnected from the other documents. It must match the price offer, the payment plan, the unit details, the Oqood or relevant registration, and the documents received later on.
The SPA should define
What must you check before signing a purchase contract?
Before signing an SPA or any sale contract, you need to check the key details. It’s not enough that the price looks good — you must verify the contract itself protects you and explains exactly what you’re committing to.
1. The Parties’ Details
Check that your name, passport or company details, the developer’s or seller’s name, and all party details appear correctly with no errors.
2. The Property Details
Unit number, floor, area, parking, balcony, view, project name and location — everything must exactly match what was presented to you.
3. Purchase Price
Verify the price in the contract is identical to the offer you approved, and that it’s clear whether the price includes or excludes fees, DLD, registration and additional costs.
4. Payment Plan
Check every payment: how much, when, under what terms, and what happens if the buyer is late or the developer is delayed.
5. Handover Date
In off-plan it’s important to check the estimated handover date, grace periods, delay terms and your rights if the project is delayed.
6. Special Clauses
Check clauses on cancellation, selling before handover, transfer of rights, penalties, specification changes, service charges and post-handover warranty.
What counts is the contract — not the brochure
Developers and brokers can show presentations, renderings, brochures, yield tables and general promises. All of that can help understand the project, but in the end the binding document is the contract and the official documents attached to it.
So it’s important to verify that everything that truly matters to you appears in the documents: property size, specification, payments, handover, parking, furniture if any, post-handover terms and every other commitment.
What should never stay verbal?
The payment plan in the contract must be clear to the last dirham
In off-plan, the payment plan is a central part of the deal. It’s important to check whether payments are tied to dates, construction milestones, handover, or the period after handover.
Don’t settle for asking how much you pay today. Check the total amount, what happens if a payment is late, whether there are penalties, and what happens if you want to sell the rights before completing all payments.
Payment checks
In off-plan, check the registration too — not just the contract
When buying an off-plan property, signing the purchase contract is only part of the process. It’s important to verify the deal is properly registered, the project is registered, and the unit, buyer and payment details match the documents.
Initial registration / Oqood matters to make sure the deal doesn’t remain at the level of a booking form or receipt. So you need to understand when registration happens, who handles it, and what you should receive afterwards.
What to check after signing?
Don’t transfer money without understanding where it goes
In an off-plan deal, it’s important to check the payment instructions match the project, the developer and the documents you received. One key point is verifying payments go through the right channel and not to an account unrelated to the deal.
If there’s a gap between the contract, the payment instructions, the developer name, the project name or the account details — stop and check before transferring money.
Before paying, check
The handover clauses in the contract are critical for an investor
In off-plan, handover is the moment the investment becomes an asset to manage. So it’s important to check what the contract says about the handover date, grace period, defect liability, handover payments and what happens in case of delay.
Handover date
Check whether it’s an estimated date, a binding one, or subject to conditions and extension periods.
Grace period
The developer may have an allowed extension period. It’s important to understand how long and what it means for you as an investor.
Defects and warranty
Check what happens if there are defects at handover, who fixes them, within how long, and how demands are documented.
Want to sell before handover? Check whether the contract allows it
Many off-plan investors ask whether they can sell the property before handover. The answer depends on the developer’s terms, the payment stage, the documents, the registration and the contract terms.
So if your exit plan includes selling before handover, it’s important to check this clause before signing — not after the market changes or after you’ve already paid significant amounts.
What to check?
Contracts look different in off-plan and secondary
In off-plan the contract is with the developer, and the review focuses on the project, unit, payment plan, handover, registration, escrow and future resale terms. Remember: in off-plan the client pays no agency fee at all. The agent’s commission is paid by the developer.
In secondary / resale it’s a deal with an existing seller. Here you check Contract F or the relevant sale contract, Title Deed, NOC, service charge debts, an existing tenant and the ownership transfer. In resale deals the buyer usually pays a 2% agency fee + 5% VAT on the fee, i.e. effectively 2.1%.
Quick comparison
A good SPA should help you understand the total cost
The property price is only part of the deal. Before signing you need to understand which additional costs exist: DLD, registration fees, service charges, handover, furniture, property management, maintenance, and in secondary also the buyer’s agency fee.
If the contract doesn’t explain what’s included and what’s not, or if some costs appear in separate documents, you must consolidate all the numbers before deciding the deal fits.
Costs to check
They promised you post-handover — but is it actually written?
Say you were shown a project with a comfortable payment plan: 60% until handover and 40% after handover. That can look great for cash flow.
But before signing you must check the post-handover terms appear clearly in the contract: amounts, dates, payment deadlines, late penalties, and what happens if the property has been delivered but payments are still open.
A simple rule
When should a purchase contract make you stop?
A long or complex contract isn’t necessarily a problem. The problem starts when there are gaps, ambiguity, pressure to sign, or clauses that don’t match what was presented to you.
The price doesn’t match the offer
If the price, discount or payments in the contract differ from the offer you received, stop and clarify before signing.
A vague handover date
If it’s unclear when handover is, what the grace period is and what happens in a delay, examine the clause in depth.
Unclear penalties
Late payments, deal cancellation or contract breach can carry penalties. It’s important to understand them in advance.
Missing documents
If there’s no full contract, no clear payment plan, or the documents don’t match — don’t proceed.
Verbal promises
Furniture, yield, a discount, handover or the option to sell before handover must be backed by documents.
Pressure to sign fast
If there’s no time to read, check and ask questions, that’s a sign to slow down, not speed up.
Questions you must ask before signing an SPA
These questions will help you understand whether the contract truly reflects the deal, and whether there are clauses to clarify before signing or paying more.
Are all the property details correct?
Unit number, area, floor, parking, balcony, project and location must be precise.
Are the price and payment plan identical to the offer?
Check there’s no change between the brochure, the booking form, the offer and the contract.
What happens if handover is delayed?
Check the grace period, compensation if any, the buyer’s rights and cancellation terms.
Can you sell before handover?
If that’s your exit plan, check it before signing, not afterwards.
What’s included and what’s excluded from the price?
Furniture, parking, service charges, fees, registration, handover and additional costs.
Which documents do you get after signing?
It’s important to understand what arrives now, what arrives after registration, and what arrives only after handover and completing the processes.
I help you understand what the contract says before you commit
When you send me an SPA, an offer, a payment plan or deal documents, I help you check the key points: price, payments, handover, service charges, registration, escrow, exit options, unusual clauses and red flags.
What should you send me?
Send me the contract, the price offer, the payment plan, the developer name, the project name, the unit number and any document you received before signing.
Before you sign an SPA — make sure the contract says exactly what you were promised
A good deal starts with good numbers, but closes with the right documents. Check the price, payments, handover, registration, service charges, exit options and every clause that could affect you later.
Questions about SPA and purchase contracts in Dubai
What is an SPA in Dubai?
An SPA is a Sale and Purchase Agreement. It defines the deal details, the price, the payments, the handover and the parties’ obligations.
Is an SPA relevant only for off-plan?
No. Sale contracts exist in secondary too, but in off-plan the SPA with the developer is usually an especially central document because of the payment plan and the future handover.
What’s most important to check before signing?
The property details, price, payments, handover date, penalties, registration, escrow, the option to sell before handover and any unusual clause.
Can you rely on a brochure or a WhatsApp message?
Better not. A brochure or message can explain the deal, but what actually counts is the contract and the official documents.
Do you pay an agency fee in off-plan?
No. In off-plan the client pays no agency fee at all. The agent’s commission is paid by the developer.
How much is the agency fee in secondary?
In secondary / resale deals the buyer usually pays a 2% agency fee + 5% VAT on the fee, i.e. effectively 2.1%.
Can I send you a contract for review?
Yes. Send me the contract, the price offer, the payment plan, the project and developer name, and we’ll go over the key points together before you sign.
Received an SPA or purchase contract in Dubai?
Send me the documents and we’ll check together the price, the payment plan, the handover date, the registration, escrow, service charges, exit clauses and red flags before you sign.
The information on this site is for general purposes only and does not constitute legal, financial, tax or investment advice. Purchase contracts, SPA, Contract F, Oqood registration, Title Deed, escrow, service charges, fees, handover dates, buyer rights, penalties and deal terms may vary between developers, projects and deal types. Before signing, transferring funds or making a financial commitment, review the official documents and consult qualified professionals as needed.