SPA (Sales and Purchase Agreement)

The Sales and Purchase Agreement (SPA) plays a central role in the business with Property in Dubai and differs from purchase contracts in other countries in a number of important respects. As an official document of the Dubai Land Department, it follows strict guidelines and standardisations.

Essential components of the SPA:

• Detailed identification of the contracting parties
• Precise description of the property with all technical details
• Agreed purchase price and payment plan
• Handover date and conditions
• Warranties and guarantees
• Regulations for default or breach of contract

Special features in Dubai:

In Dubai, the SPA must be submitted to the Dubai Land Department be registered. This serves the purpose of legal certainty and is a prerequisite for the subsequent transfer of ownership. Registration is carried out via the OQOOD-system for properties under construction or directly with the DLD for completed properties.

Important information for buyers:

• Have the SPA checked by a local legal expert before signing it
• Pay attention to the correct wording of the payment terms and handover dates
• Make sure that all ancillary costs and fees are listed transparently
• Check the exit clauses and possible contractual penalties

The completion of a SPA in Dubai typically takes place in several steps:

1. Negotiation of contract terms
2. Preparation of the standardised contract
3. Examination by both parties
4. Signing before a licensed real estate agent or lawyer
5. Registration with DLD

Please note that in Dubai for the SPA special fees which typically amount to 4% of the purchase price. These are due at DLD together with the registration of the contract.