Due Diligence on a Developer and a Project
There are hundreds of licensed developers in Dubai and the spread between them is wide: not in finish quality so much as in whether the building arrives on the promised date, or at all. Due diligence takes one working day. This is the checklist we use, ordered by what kills a deal fastest.
1. Registration: is this a project at all?
The Dubai Land Department's register, accessible through its official services, answers four questions in minutes:
- Is the developer registered with RERA and licensed to sell in this project?
- Is the project registered, with a project number and a current status?
- Does it have an escrow account under Law No. 8 of 2007, and does the account in the register match the one in the SPA?
- What is the completion percentage from the last inspection, and has the completion date been officially extended?
Off-plan sales and advertising before project registration are not permitted. If a project is "launching" but not yet registered, any money you pay is outside escrow protection. Stop there.
2. Track record: promised dates versus actual dates
Reputation is not a track record. For each of the developer's completed projects, compare the completion date in its original marketing with the date units were actually handed over. Sources: the DLD register, archived listings and brochures, owners' groups for the specific buildings. One slip happens to everyone. A pattern of multi-year slips is a business model. Check, too, how the developer behaved when late: did it notify buyers, offer compensation, or go quiet?
3. Land and title
Who owns the plot: the developer, the district's master developer, or a third party? On what basis does the developer sell units on it? For foreign buyers, the plot must lie in a designated area where non-nationals may hold freehold, or the rights you receive will be something less than ownership. What the brochure calls "freehold" and what the land record says are not always the same.
4. Corporate structure
Who owns the developer and since when? Is this project held through a separate special-purpose company? If so, the parent brand's balance sheet and reputation are not legally behind your contract. Which bank runs the escrow? Are there RERA complaints or court cases with buyers? A single-project company with no history is not disqualifying, but it justifies stronger terms: payments linked to construction milestones, a buyer's right to terminate on delay, evidence of construction finance beyond buyer instalments.
5. The building you can walk into
Visit a building the same developer handed over three to five years ago. Look at the lobby, lifts, façade, car park, and how the owners' association and management company are running it. Ask residents about defects, warranty response and service charge increases. Renders describe intentions; a five-year-old building describes the developer.
6. The SPA
A strong developer can still issue a one-sided contract. Read for:
- the grace period for late handover and what compensation, if any, follows it;
- the developer's right to change design, area and layout, and any tolerance for area variation;
- whether instalments are tied to construction milestones rather than calendar dates;
- resale conditions before handover: NOC, minimum paid share, fees;
- termination and retention terms (Dubai law sets the developer's maximum retention if you default; the contract should not try to exceed it);
- the dispute forum: Dubai courts, DIFC Courts or arbitration.
Red flags that end the conversation
- Sales before registration or requests to pay outside escrow
- "Guaranteed" rental yields or buy-back promises in marketing
- A pattern of delays across past projects with no compensation to buyers
- A sudden change of main contractor mid-build
- Refusal to show permits, the land record or the full SPA before a deposit
- Pressure to decide today for a discount
What good looks like
A registered project with an active escrow, a developer whose last three buildings were handed over within their grace periods, a plot in a designated freehold area owned or controlled by the developer, an SPA with milestone-linked payments and a defined remedy for delay, and a completed building that still looks cared for.
How long it takes and what we need
Register and document checks: hours. A site visit to a completed building: half a day, and it can be delegated to a representative with a photo report if you are abroad. We need the project and developer names, the draft SPA and the payment plan.
Frequently asked questions
Does a big brand mean a safe project?
No. Brands have weak projects and single-project companies behind them. Check the project, then the entity that actually signs your SPA.
Does escrow mean the building will be finished?
Escrow controls how your money is spent. It does not guarantee completion or timing.
Can I do this from abroad?
Almost all of it. The register, the corporate checks and the SPA review are remote. Only the walk-through needs someone on the ground.
This is a general framework, not legal advice. UAE law changes, and procedures differ between emirates and free zones. We review each situation individually.