Oqood is a system used in Dubai for the registration and management of off-plan properties. The Dubai Land Department (DLD) introduced the Oqood system to regulate the off-plan property market and protect the rights of buyers.
Under the Oqood system, developers must register their off-plan projects with the DLD and obtain an Oqood permit before they can sell the properties. This permit acts as a guarantee that the developer has the necessary approvals and funds to complete the project.
Once the Oqood permit is obtained, the developer can then sell the off-plan properties to buyers. The buyers’ payments for the properties are held in escrow by the DLD until the project is completed. Once the project is completed, the DLD releases the funds to the developer and the buyer receives their property.
The Oqood system provides transparency and protection for buyers as it ensures that the developer has the necessary approvals and funds to complete the project, and the buyer’s payments are held in escrow until the project is completed. Additionally, the Oqood system helps to regulate the off-plan property market, reducing the risk of fraud or delays in construction.