Oqood vs Ownership: Understanding the Legal Limits and Consequences of Off-Plan Property Registration in Dubai

Dubai’s off-plan real estate market is governed by a specialised statutory framework designed to regulate property sales during the construction phase while safeguarding purchaser interests. Central to this framework is Dubai Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai, as amended by Law No. (19) of 2017. This legislation mandates that all dispositions relating to off-plan property units must be recorded in the Interim Real Property Register (Oqood) in order to have legal effect.

 

Oqood operates as a compulsory interim registration mechanism that documents off-plan transactions, subjects them to regulatory oversight by the Dubai Land Department (DLD), and aligns purchaser payments with the escrow regime established under Dubai Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development. However, pursuant to Dubai Law No. (7) of 2006 Concerning Real Property Registration, legal ownership of real property arises only upon registration in the definitive Property Register and the issuance of a title deed.

 

Accordingly, while Oqood creates enforceable contractual rights during the construction phase, it does not confer proprietary ownership. This distinction remains fundamental to understanding rights, risks, and liabilities in Dubai’s off-plan property transactions.

Oqood and the Interim Property Register: Legal Purpose and Effect

Within Dubai’s off-plan real estate framework, Oqood functions as the mechanism through which off-plan transactions are brought under formal regulatory supervision. Upon execution of a Sale and Purchase Agreement, the transaction must be recorded in the Interim Property Register through Oqood, ensuring that it is formally recognised and monitored by the Dubai Land Department, acting through the Real Estate Regulatory Agency (RERA).

The purpose of Oqood registration is not to create ownership, but to regulate the contractual phase of the transaction by recording its essential particulars. These include the identity of the parties, unit specifications, purchase price, payment schedule, and project registration details within the regulatory system.

The legal effect of Oqood registration is therefore supervisory and protective. It enables oversight of purchaser payments in conjunction with the escrow regime established under Dubai Law No. (8) of 2007, ensuring that funds are traceable and applied towards construction in accordance with approved project milestones. Importantly, Oqood does not alter the ownership position of the property. Legal title remains vested in the developer throughout the construction phase, and the purchaser’s rights remain contractual until completion and registration of the unit in the definitive Property Register.

Oqood thus operates as an interim regulatory framework governing off-plan transactions, bridging the period between contract execution and final ownership without conferring proprietary or possessory rights.

Oqood Registration vs Title Deed: Key Legal Distinctions

Issuing Authority


Oqood is issued by the Dubai Land Department through the Interim Property Register, administered by RERA. A title deed, by contrast, is issued by the Dubai Land Department upon registration in the definitive Property Register.

Stage of the Property


Oqood applies to properties that are off-plan or under construction, whereas a title deed applies only once a property is completed and handed over.

Legal Character


Oqood constitutes an interim statutory registration of an off-plan disposition. A title deed represents definitive statutory registration of ownership.

Nature of Rights


Oqood confers contractual rights arising under the Sale and Purchase Agreement. A title deed confers full proprietary ownership rights.

Ownership Status


Under Oqood, legal title remains with the developer. Upon issuance of a title deed, legal title vests in the purchaser.

Transferability


Transfers under Oqood are restricted and subject to Dubai Land Department procedures and, in most cases, developer consent. Title-deeded property is freely transferable, subject to registered encumbrances.

Mortgage Eligibility


Off-plan units registered under Oqood are not mortgageable as owned real property. Title-deeded properties may be mortgaged as real property.

Possession Rights


Oqood does not confer a right to possession. A title deed carries with it the right to possession and use.

Legal Effect


Oqood provides regulatory recognition and oversight of the off-plan transaction. A title deed constitutes conclusive legal proof of ownership.

Rights and Limitations of Purchasers Under Oqood Registration

An off-plan purchaser registered under Oqood acquires enforceable contractual rights, not ownership rights. These rights stem from the Sale and Purchase Agreement and are recognised by regulatory authorities. They allow the purchaser to demand contractual performance, challenge unlawful termination, and seek remedies in the event of developer default, subject to the applicable legal framework and regulatory procedures administered by the Dubai Land Department and RERA.

At the same time, Oqood imposes deliberate and clearly defined limitations. Until completion and issuance of a title deed, the purchaser cannot exercise unrestricted rights of disposal, including free resale, mortgaging, or possession of the property. Any assignment or transfer of the off-plan unit remains subject to regulatory requirements and, in most cases, developer consent.

These limitations are integral to Dubai’s off-plan regulatory model. They are designed to preserve escrow integrity, prevent speculative abuse, and ensure that ownership transfers occur only once a property is completed and capable of independent registration.

 

Conclusion

Oqood is a critical component of Dubai’s off-plan regulatory framework, yet it is frequently misunderstood. It functions as a mandatory interim registration mechanism that brings off-plan transactions under regulatory supervision, protects purchaser payments through escrow oversight, and enforces developer accountability during the construction phase. What it does not do, however, is transfer ownership or confer proprietary rights over real property.

Legal ownership in Dubai arises only upon completion of the project and registration of the unit in the definitive Property Register with the issuance of a title deed. Understanding this distinction is essential for purchasers, investors, and legal advisers alike. Treating Oqood as equivalent to ownership can expose buyers to unnecessary legal and commercial risk, particularly in situations involving project delay, termination, or attempted early disposal.

 

A clear appreciation of Oqood’s legal limits is therefore fundamental to informed decision-making in Dubai’s off-plan real estate market.

 

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.