SPA (Sales Purchase Agreement) explained. Dubai real estate term · Costa Global Capital
Glossary/SPA (Sales Purchase Agreement)

SPA (Sales Purchase Agreement).

The binding legal contract between buyer and seller, signed before the DLD transfer is registered.

Definition

What SPA (Sales Purchase Agreement) means.

An SPA is the Sales Purchase Agreement signed between buyer and seller (or buyer and developer for off-plan). It locks in the price, deposit, payment milestones, handover terms, and any conditions. Once signed and a 10 percent deposit is paid, the SPA is legally binding.

The team's read

What this actually means for buyers.

Mario reads every SPA line by line before any client signs. The high-risk clauses are the late-payment penalty rate (some developers charge 18 percent annual), the handover date and the developer's right to extend it, and the dispute resolution venue. For off-plan, the SPA also references the Oqood registration timeline. Walking away after signing without a clean exit clause means losing the 10 percent deposit.

Standard deposit
10 percent of purchase price
Cooling-off period
None (binding on signing)
Off-plan SPA
Triggers Oqood registration
Resale SPA
Triggers NOC and DLD transfer process
Late payment penalty
Defined in SPA (typically 10-18 percent annual)

Have a specific deal in mind?

Mario walks every European investor through these mechanics on the first call. The diligence trail is what separates a clean deal from a regret.