Questions to ask a developer

1. 01
   Is the project registered with RERA, and what is the project number?

   Every off-plan project in Dubai must be registered with the Real Estate Regulatory Agency (RERA) before it can be sold. A good answer is a concrete project number you can verify yourself through the Dubai REST app or the DLD website, along with the project’s current status.

2. 02
   Is the escrow account number stated in the contract, and at which bank?

   Your payments for an off-plan property should go into a RERA-supervised escrow account, not the developer’s company account. A good answer is an account number and bank name that appear literally in the sale and purchase agreement and on every payment instruction.

3. 03
   What is the construction progress today, and what is the expected handover, including the contractual grace period?

   The expected handover date in the brochure is rarely the same as the date in the contract. Ask for the construction progress percentage as recorded by RERA today, and for the grace period the developer is contractually allowed to use, usually expressed in months after the planned date.

4. 04
   Which projects has the developer delivered before, and how late were they?

   The best predictor of a future handover is the track record. A good answer includes concrete project names with planned and actual handover dates, which you can then verify with the DLD and by speaking to residents or the management of those buildings.

5. 05
   What does the payment plan look like, and what happens in case of delay?

   Payment plans are often tied to construction milestones or to fixed dates. Ask which of the two applies, what happens to your instalments if construction stalls, and what compensation or termination rights the contract gives you if handover falls outside the grace period.

6. 06
   What are the expected service charges, and who will manage the building after handover?

   Service charges make up a large part of your annual costs and vary significantly by building. A good answer is an indication per square foot, based on comparable delivered projects, plus the name of the intended managing agent and how the owners’ association will be set up.

7. 07
   Is the land freehold, and does that appear on the title?

   In Dubai, foreigners can only obtain full ownership in designated freehold areas. Ask whether the plot is freehold and whether that appears on the developer’s title deed, rather than on a leasehold or development agreement.

8. 08
   Which finishes and materials are contractually specified?

   The show unit and the artist impressions are not a contract. Ask for the specification schedule attached to the sale and purchase agreement, listing the brands or quality levels of the kitchen, sanitaryware, flooring and installations, and for the clause governing substitution with equivalent materials.

9. 09
   What is the pre-handover resale policy, and what fees does the developer charge for it?

   Many developers only allow resale during construction once a certain percentage of the purchase price has been paid. Ask for that percentage, for the administration fee the developer charges for the transfer (NOC), and for how long that process takes in practice.

10. 10
    What is planned in the surrounding area, and by whom?

    Today’s view and quiet are no guarantee. Ask which plots around the project remain undeveloped, what their designated use is, and whether the area’s master developer has plans for infrastructure, schools, retail or high-rise buildings that would affect your property.

Checklist from Augusta Properties, augusta-properties.com/developer-checklist. Guidance for buying property in Dubai.