Buying properties still under construction (Off-Plan Property) carries unique risks.
Agents sometimes provide incorrect information about properties. This leads buyers to discover these discrepancies only after they’ve already committed to the purchase, causing financial and emotional stress.
Developers may delay completion well beyond promised dates, change specifications or layouts without notice. While laws exist to protect buyers, navigating these situations requires knowledge many agents don’t adequately provide.
Common issues that off-plan property buyers face when dealing with real estate agents in Dubai, Sharjah, and Abu Dhabi
Lack of Transparency from Real Estate Agents
What it means: Some agents selling off-plan property in Dubai may not disclose the full picture. They might leave out key details about additional costs, construction timelines, or legal obligations—focusing only on attractive selling points to close the deal. They might only tell you the “good parts” to get you to buy.
Example: An agent quotes an AED 1 million price for an off-plan unit but doesn’t mention added costs like DLD fees, agency commissions, admin charges, service fees, or staggered post-handover payments until after you’ve bought the offplan property and committed to it.
Why it’s a problem: You could end up paying more than expected, may have legal issues with the developer or waiting longer than planned to get your property ready.
Pressure Tactics
What it means: Agents rush you into booking a unit by saying it will sell out quickly or “prices go up tomorrow,” even if that’s not true.
Example: An agent says, “Only 2 units left at this price—book now or lose the deal.” You feel pressured and pay the booking fee, only to later discover the project is not even close to being sold out.
Why it’s a problem: You don’t get time to do your research or think properly before making a big financial decision.
Dual Representation from the agent
What it means: The agent works for both you (the buyer) and the developer, but may only be loyal to the party paying them more (usually the developer) which creates a conflict of interest.
Example: The agent pushes you to buy a unit in a less attractive location in the building (e.g., facing a wall), because the developer is offering the agent a higher commission on that particular unit.
Why it’s a problem: They may not act in your best interest. They could push you to buy something that’s better for them, not for you.
Unlicensed Agents
What it means: Some people pretend to be agents but aren’t registered with RERA. They may not be qualified or trustworthy. This is risky, especially with off-plan projects that need legal verification.
Example: You’re shown a new project by someone posing as an agent. You pay a booking fee. Later, you find out they were unlicensed, and the developer doesn’t recognize your booking—your money is gone.
Why it’s a problem: You might deal with scams, lose money, or get involved in deals that are not legally protected.
Fake Listings
What it means: Some agents advertise off-plan properties with fake prices, views, or floor plans to get leads. They are just used to get your attention (clickbait), and then you’re offered something else.
Example: You see an ad for a “sea-view apartment for AED 800k.” When you inquire, they say it’s sold and offer you a different unit for AED 1.2 million with no sea view. The original listing was just bait.
Why it’s a problem: You waste time and may feel tricked into buying something less appealing or more expensive.
Complex SPA Contracts
What it means: Real estate contracts in Dubai use complicated legal language and detailed clauses. These terms define the buyer’s responsibilities and rights. If agents don’t explain them properly, buyers might not know what they’re agreeing to.
Example: A buyer signs a contract with a strict payment schedule and heavy penalties for delays. The agent didn’t explain the clause clearly, and the buyer ends up paying fines they weren’t prepared for.
Why it’s a problem: Buyers may unknowingly agree to terms that put them at a disadvantage. This can lead to financial losses, legal issues, or cancellation of the deal—all because they didn’t fully understand the contract.
Poor Communication
What it means: After you pay the booking fee, the agent stops updating you about project status, construction progress, or paperwork. You’re left with no idea what’s happening with your property.
Example: You book a unit and expect regular updates. Months go by with no news about when construction will begin, and the agent stops responding. Why it’s a problem: You feel stuck, confused, and may miss important steps like signing contracts or payment deadlines.
Overpromising
What it means: Agents often make big promises—like fast project completion, high rental income, or fast price increases—that are unrealistic. Agents exaggerate benefits like return on investment (ROI), handover date, or location value.
Example: An agent tells you the project will be completed in 1 year with guaranteed 10% ROI. Two years later, it’s still under construction, and you find out similar properties in the area give only 6% ROI.
Why it’s a problem: You make your decision based on false hopes and end up disappointed when the reality doesn’t match.
Inadequate After-Sales Service
What it means: After booking the unit, the agent vanishes and doesn’t help with follow-up steps like signing the SPA (Sales Purchase Agreement), payment reminders, or construction updates. After you buy the property, the agent is no longer helpful.
Example: You pay the first installment and expect help with RERA registration and signing the SPA. The agent is unresponsive, and you’re left dealing with the developer alone, unsure of what to do next.
Why it’s a problem: You’re left dealing with the developer or government offices on your own, which can be confusing, especially for first-time buyers.
Hidden Commissions for a Offplan Property
What it means: Some agents take a commission from both you and the developer, without telling you. Agents may take extra money from the developer, in addition to what you pay, without telling you. This influences their advice.
Example: You pay the price shown by the agent, assuming it includes everything. Later, you find out the agent also received a large cut from the developer, which could have been negotiated to reduce your price.
Why it’s a problem: They may push you toward the unit that gives them more commission, not the one that’s best for you.
Lack of Due Diligence
What it means: Some agents don’t check if the project is legally approved, registered with RERA, or if the developer has a good track record.
Example: You buy into a project based on the agent’s word. Months later, construction hasn’t started. You check and realize the developer isn’t approved by RERA and has a history of delays or cancellations.
Why it’s a problem: You could end up investing in a project that’s delayed, cancelled, or not legally protected—putting your money at serious risk.
Digital Scams Targeting Off-Plan Properties
What it means: Scammers exploit interest in off-plan properties (homes sold before construction is complete) by creating fake listings online. They use platforms like WhatsApp to appear legitimate, often pretending to be agents or developers, then ask for payments through untraceable digital methods.
Example: A buyer finds an attractive off-plan apartment online and messages the “agent” on WhatsApp. The scammer shares floor plans and brochures, claiming limited availability. The buyer is pressured to pay a booking fee through a digital wallet. After payment, the contact vanishes.
Why it’s a problem: Off-plan buyers are already paying for something not yet built, making it easier for fraudsters to fake legitimacy. Once money is transferred to a scammer’s digital or mule account, it’s nearly impossible to recover, leaving victims with no property and significant financial loss.
Target Foreigners and Expatriates in Off-Plan Property Scams
What it means:
Expatriates and new residents are often the main targets for off-plan property scams. Their lack of knowledge about local real estate rules and their urgency to secure housing make them more likely to trust fake agents or listings.
Example: A newcomer moving to the city for work is looking for a future home and sees an off-plan property advertised online. The supposed agent offers a “special deal” if the buyer pays a deposit quickly. Eager and unfamiliar with local procedures, the buyer sends the money—only to discover the agent and property were fake.
Why it’s a problem: These individuals are easy targets because they often don’t know how to verify listings or agents or the projects. Scammers exploit their situation, leading to financial loss, stress, and delays in finding real housing.
Each emirate has its own licensing requirements for real estate professionals. In Dubai, agents must obtain RERA certification and complete specific training through the Dubai Real Estate Institute (DREI).
Abu Dhabi requires agents to undergo training and certification approved by the Department of Municipalities and Transport (DMT). Sharjah enforces its own standards through the Sharjah Real Estate Registration Department (SRERD).
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