Dubai continues to attract real estate investors from around the world, thanks to its dynamic property market and promising returns. However, anyone looking to buy or sell property in the city must be familiar with one crucial document — the Sales Purchase Agreement (SPA).

What Exactly is an SPA?

The Sales Purchase Agreement is a formal contract that outlines the terms and conditions of a property transaction between a buyer and a seller. It is especially significant in off-plan property deals, where the unit is still under construction. This document clearly defines each party’s rights and obligations and helps prevent misunderstandings or disputes later on.

Main Components of an SPA in Dubai

An SPA typically includes comprehensive information about the buyer and seller, including personal and corporate details when applicable. It also provides a complete description of the property — such as location, size, plot number, and the developer's information (for off-plan purchases).

One of the most critical parts of the agreement is the payment terms, including the total price, down payment, installment plan, and final payment schedule. The SPA also highlights conditions precedent like financing or government approvals that must be satisfied before the transaction can be completed.

Additionally, the agreement outlines the duties of both the buyer and seller, the expected handover timeline, and post-completion amenities. Cancellation terms, particularly for off-plan purchases, should also be clearly laid out to ensure fairness.

Dubai Land Department’s Role

The Dubai Land Department (DLD) oversees all real estate transactions and is responsible for registering SPAs. This ensures that the deal is legally binding and that both parties are protected under Dubai’s real estate laws.

Best Practices for Buyers and Sellers

Before entering into an SPA, both parties should review the terms carefully. Buyers must verify all property details and the developer's credentials, while sellers should ensure full transparency regarding the property’s condition and legal standing.