# 12 costly mistakes when buying an apartment in Dubai, based on what real buyers ask > The most expensive buyer mistakes in Dubai: yields from adverts, paying outside escrow, unread SPA clauses, visa expectations, skipping snagging, broad POAs and home-country taxes. Page: https://continentalclub.ae/articles/mistakes-when-buying-apartment-in-dubai/ · updated 2026-10-27 · Continental Club Property LLC, Dubai real estate brokerage, RERA ORN 31933 Information current to October 2026: buying an apartment in Dubai can fail financially long before the keys are handed over if you rely on advertised yield, send money outside the prescribed route, or sign an off-plan SPA without reading its exit and default terms. Plan for roughly 7–10% above the purchase price for transaction costs, verify every payment route and registration step, and treat residency, tax and resale assumptions as separate questions. In 2026, fewer transactions over 12 months, a lower median price and declining rents in some districts make unsupported rental projections particularly risky. ## 1. Calculating yield from advertising rather than from your actual net income An advertisement may show an attractive annual yield based on an asking rent and a purchase price before costs. That is a gross calculation. It does not answer what remains after service charges, cooling costs where applicable, vacancy, furnishing, management, maintenance and the costs of acquiring or later selling the apartment. This mistake is expensive because rent can fall while the fixed ownership costs remain payable. The 2026 market context matters here: transactions over the previous 12 months and the median price are lower than a year earlier, and rents in some areas have fallen. A high advertised yield for one unit is not proof that the same income can be achieved after purchase. Ask for a written calculation that separates expected rent from recurring ownership expenses and one-off acquisition costs. Compare it with completed transactions and current area data rather than only with asking prices; the [Dubai area pages with DLD prices and transactions](/location/) are the appropriate place to start that comparison. A broker can explain comparable sales and the transaction process, but cannot promise rent, occupancy or resale proceeds. ## 2. Treating the purchase price as the full budget A buyer sees a price in the SPA or reservation form, prepares that amount, and discovers later that registration, transfer and administrative charges still need to be funded. A practical budget should allow approximately 7–10% above the stated property price for purchase-related costs. The exact composition depends on the transaction and contract. For a transaction requiring Dubai Land Department registration, the stated registration charge is 4% of the price. Trustee office charges and other administrative amounts depend on the procedure and should be confirmed before funds are committed. Use the [Dubai property purchase fees calculator](/dubai-property-fees-calculator/) to estimate these items, then verify the figures in the documents for the specific deal. Off-plan purchasers should also distinguish contract payments from fees due for registration in the Interim Real Property Register, commonly called oqood. The party responsible for a fee can be allocated in the SPA. Do not assume that a marketing statement about “no commission” means there are no registration or ownership costs. ## 3. Paying a broker, salesperson or personal account instead of the project escrow account For an off-plan unit, Law No. 8 of 2007 requires payments from purchasers to be deposited in the escrow account opened in the name of that specific development project. Each project must have its own account. The funds in that account are dedicated to construction of that project and cannot be attached by the developer’s creditors. Executive Council Resolution No. 6 of 2010, as summarised in secondary sources, addresses the broker’s role: a broker marketing off-plan property must deposit the unit sale price into the project escrow account and cannot place it in the broker’s own account or deduct commission before the deposit; confirm the wording with a lawyer. The broker should never receive or hold a client’s purchase money. Before each instalment, obtain the payment instructions that identify the project account and retain the confirmation of payment. The process for instalments is explained in [how to pay a developer through escrow in Dubai](/how-to-pay-developer-dubai-escrow/). A broker may help you understand the requested documents and payment schedule; money transfer, currency exchange and account execution are matters for the payer and the relevant financial institution. ## 4. Buying from an advertisement without checking the Trakheesi permit and the broker’s BRN A polished listing, a social-media video or a brochure is not evidence that the advertiser is authorised to market the unit. Every advertisement requires a Trakheesi permit number, and a developer selling off-plan must be registered and licensed, while the marketing broker must hold a BRN registration card. Ask to see the Trakheesi advertising permit and verify the broker registration number, usually referred to as BRN, before providing documents or making a reservation payment. The advertising permit is a marketing control; it does not replace checks on the project, the SPA, the seller’s authority or the payment account. For off-plan sales, Executive Council Resolution No. 6 of 2010 also provides that a project marketed through a broker must be registered, and the developer’s marketing agreement with that broker must itself be registered. A sale made before approval to commence the project and registration with the DLD is invalid under Article 11 of that Resolution, as summarised in secondary sources. ## 5. Signing an SPA without reading the grace period, area clause, resale restriction and NOC terms The SPA is where many buyers discover that a promised completion date is not an unconditional delivery date. Some contracts contain a grace period after the scheduled handover date. Market practice is a grace period of 6–12 months, which is a contractual term and not a universal legal rule. Whether a delay gives rise to a claim depends on the SPA and, where necessary, a legal assessment. Check the net area shown in the contract and plan. Resolution No. 6 of 2010 (as reported) provides compensation if the actual net area is more than 5% smaller than the contractual net area, calculated using the agreed unit price. A variation of up to 5% is not automatically a right to cancel the deal. The contract wording and the circumstances still matter. Read the assignment or resale clause before assuming you can sell before handover. The payment threshold for resale, often described in market practice as 30–40% and sometimes higher, is not set by a single rule of law; it depends on the SPA and the developer’s policy. The same applies to the NOC requirement and its fee. If the consequences of default, delay, assignment or specifications are unclear, ask an independent UAE lawyer to review the SPA before signing. A broker cannot give a legal opinion. ## 6. Missing oqood registration and assuming an off-plan booking alone proves your right Oqood is the common name for registration in Dubai’s Interim Real Property Register. For off-plan property, registration is not a cosmetic formality. Law No. 13 of 2008 regulates the Interim Real Property Register, and legal dispositions relating to off-plan units need to be recorded through the prescribed system. Keep the executed SPA, payment confirmations and registration records together. If a developer delays or refuses to register the agreement, a purchaser may approach the DLD Real Estate Registration Assurance section. Ask which parking space, storage area or other facility is actually allocated in your sale documents. ## 7. Expecting a property visa from any off-plan purchase or small ownership share Property ownership and UAE residence are separate processes. Paying an off-plan instalment, holding oqood registration, or owning a share below an applicable threshold does not by itself establish visa eligibility. Requirements can depend on the value, ownership structure, property status and immigration procedure applicable at the time of application. Do not buy an apartment solely because a salesperson describes it as “visa eligible.” First establish the ownership structure and property stage, then check the current requirements for your circumstances. The [UAE residency through property guide and visa calculator](/uae-residency-property/) can help identify the questions to verify, but an immigration specialist or the competent authority should confirm eligibility. A broker can assist with property documents connected to the purchase. The broker does not issue visas, open accounts, grant finance or provide immigration, legal or tax conclusions. If residence is the main purpose of the purchase, obtain the relevant specialist advice before paying a non-refundable amount. ## 8. Ignoring service charges, chiller charges and the cost of keeping the apartment Ownership costs begin after completion as well as at purchase. Service charges may apply to the building or community, and cooling can be billed separately in developments using a chiller arrangement. These costs affect the amount available to an owner after rent and can also affect an apartment that remains vacant. Ask for the current service-charge information for the unit or building, whether cooling is included or billed separately, and which utilities or charges remain the owner’s responsibility. If the apartment is off-plan, the future amount may not be known with certainty at the time of signing. Do not present an estimate as a fixed figure. Read [how service charges in Dubai affect property returns](/articles/what-are-service-charges-in-dubai-and-how-they-impact-your-property-returns/) before using a yield figure in a buying decision. A lower purchase price does not automatically offset higher recurring charges. ## 9. Leaving your bank account and payment route until after you sign Buyers sometimes reserve a unit first and only then ask how they will make the down payment and later instalments. That creates pressure at the worst time, especially where the SPA sets strict payment dates. A failure to meet contractual obligations can have serious consequences under the off-plan default framework. Under Law No. 19 of 2020 (Article 11 of Law No. 13 of 2008 as amended), if the buyer defaults, DLD sends a 30-day notice and tries to reconcile the parties. After that, the amount a developer may retain depends on construction completion: above 80% complete, termination may allow retention of up to 40% of the unit price; for 60–80%, up to 40%; and below 60% where works have begun, up to 25%. The remainder is refunded within one year of termination or 60 days after resale, whichever is earlier. If works have not started for reasons beyond the developer’s control, the position differs; ask a lawyer. Before reservation, ask your bank what documentation, timing and payment instructions it requires. For buyers transferring funds from Russia, [how to transfer money from Russia for a Dubai property purchase](/articles/money-transfer-russia-to-uae-property/) explains the planning issues to address. The broker does not transfer or exchange money, accept client funds or arrange payment through informal channels. ## 10. Giving a general power of attorney to an agent A buyer abroad may want someone to sign, collect documents or attend a trustee office. The costly mistake is issuing a broad general power of attorney that permits transactions beyond the specific apartment and specific purpose. A document intended to solve an absence problem can create authority that is much wider than the buyer intended. Use the narrowest authority appropriate to the step that must be completed, identify the property and transaction where possible, and set a clear duration. The required form, notarisation, translation and acceptance procedure depend on the situation. A UAE lawyer should advise on the wording and scope of a power of attorney. Do not confuse assistance with authority. A broker can coordinate documents and explain the purchase sequence but should not receive unrestricted power to dispose of property, receive sale proceeds or make unrelated commitments in your name. ## 11. Signing handover documents without independent snagging At handover, buyers may be focused on receiving keys and starting a tenancy. That is when visible defects, incomplete finishes, missing fixtures and discrepancies with the SPA can be missed. Once an acceptance document is signed, resolving issues may become more difficult and more document-heavy. Arrange a detailed inspection before signing the handover record, compare the apartment with the contractual specifications, and photograph items that require rectification. Include parking and any facilities allocated to the unit. Use the [Dubai apartment snagging checklist](/articles/snagging-checklist-dubai/) to structure the inspection rather than relying on memory during a short appointment. Resolution No. 6 of 2010 permits a purchaser to seek court termination in specified circumstances, including a material deviation from agreed specifications or a unit found after handover to be unfit for use because of material construction defects. That is not a substitute for snagging. It describes a legal route whose suitability must be assessed by a lawyer on the facts. ## 12. Buying the cheapest unit in a weakening district because the headline yield looks high A low entry price can be a warning rather than an opportunity. An apartment may be cheaper because of layout, view, building costs, future supply, limited buyer demand or rent pressure. In 2026, lower median prices and declining rents in some districts make the phrase “cheap for the area” insufficient analysis. Compare completed sales, not only current listings. Check the unit’s size, floor, parking, condition, service charges and legal status against actual comparable transactions. For ready property, the ownership record must also be checked: use the [guide to verifying a title deed and ownership in Dubai REST](/how-to-verify-property-ownership-in-dubai-complete-guide-to-title-deed-and-dubai-rest/) before proceeding. If you are choosing between off-plan and a completed apartment, do not treat one as automatically safer or more profitable. Ready property has its own transfer, title and inspection steps; see [how to buy a ready property in Dubai](/articles/how-to-buy-a-ready-property-in-dubai/) for the sequence. The broker can help compare DLD transaction evidence, prepare documents and accompany the transaction, without guaranteeing liquidity, price or income. See also: [off-plan or ready: which suits your goal](/articles/off-plan-vs-ready-property-dubai/) · [EOI and deposit refunds](/articles/eoi-deposit-refund-dubai/). ## Frequently asked questions ### Can you buy off-plan in Dubai without any risk? No. Escrow accounts, project registration and DLD rules remove part of the risk, but they do not cancel handover delays, SPA terms, market price changes, ownership costs or the consequences of missing your own payment schedule. ### What is Oqood? Oqood is the interim register of rights for off-plan units, officially the Interim Real Property Register. A disposal of off-plan property must be entered in it; if the developer delays registering your contract, you can apply to the DLD. ### Who pays if a project under construction is damaged or cannot be completed? Law No. 8 of 2007 provides that the escrow agent, after consulting the DLD, takes measures either to complete the project or to refund the depositors. How liability is allocated in a specific case depends on the cause and the contract and needs legal assessment. ### Do I need a tax adviser if Dubai does not impose the tax I expect at home? Yes, if you are tax resident outside the UAE or have reporting obligations elsewhere. Your country of residence may require declarations or tax treatment that a Dubai broker cannot determine. ### Does paying the 4% DLD fee mean all registration costs are covered? No. The 4% DLD charge is one part of the purchase budget. Trustee-office and administrative charges may also apply, and recurring ownership costs begin after acquisition. ### Can an off-plan unit be sold before handover? Sometimes, but the terms depend on the SPA and the developer’s policy: a developer NOC and a minimum paid share are usually required. The law does not set a single threshold for all projects. ## Discuss a purchase in Dubai If you are considering a purchase, arrange a free consultation to go through the property, the transaction steps and the documents. ## Links - Page: https://continentalclub.ae/articles/mistakes-when-buying-apartment-in-dubai/ - JSON: https://continentalclub.ae/articles/mistakes-when-buying-apartment-in-dubai.json - Russian version: https://continentalclub.ae/ru/articles/oshibki-pri-pokupke-kvartiry-v-dubae/ (Markdown: https://continentalclub.ae/ru/articles/oshibki-pri-pokupke-kvartiry-v-dubae.md) How to cite: "12 costly mistakes when buying an apartment in Dubai, based on what real buyers ask — Continental Club Property, 2026-10-27, https://continentalclub.ae/articles/mistakes-when-buying-apartment-in-dubai/"