NEVER SIGN YOUR DUBAI PROPERTY CONTRACT IF YOU SEE THESE 5 RED FLAGS

 
16/07/2025

Thinking of investing in Dubai’s booming property market?
You’re not alone. More and more UK landlords are jumping into the Dubai real estate scene for one reason: profit. With no capital gains tax, high rental yields, and strong expat demand, buying property in Dubai looks like a no-brainer.

But before you rush to sign on the dotted line, there's one thing you absolutely must not ignore – your Dubai property contract.

Why?
Because not all Dubai property contracts are created equal. And if you don’t know what to look for, you could end up locked into a deal that’s more of a nightmare than a dream investment.

Here are 5 red flags in a Dubai property contract that every UK landlord should watch out for.

1. No Clear Handover Date or Completion Timeline

When it comes to buying off-plan, your Dubai property contract should clearly state when the property will be completed. If there's no handover date—or if the language is vague like “subject to developer discretion”—that's a huge warning sign.

Why it matters:

Delays in construction can cost you time, money, and rental income. And in the worst-case scenario, you could be waiting years with no legal backup.

✅ What to look for in your Dubai property contract:

  • A fixed handover date

  • Penalty clauses for delays

  • Developer obligations if timelines aren’t met

No clear dates = no deal.

2. One-Sided Terms Favouring the Developer

Some Dubai property contracts are written in a way that gives all the power to the developer—especially in off-plan sales. They can change specifications, delay projects, or keep your money with minimal consequences.

What this looks like:

  • Unfair cancellation clauses

  • No penalties for developer delays

  • Hidden charges buried in the fine print

Why UK landlords need to be careful:

You might be used to UK laws that protect buyers. But in Dubai, your contract is king. If it’s not written fairly, you have fewer legal options.

✅ Look for balance in your Dubai property contract:

  • Clear refund policies

  • Equal penalties for both parties

  • Transparent fee structures

If the developer has all the power, walk away.

3. Missing Details on Service Charges and Maintenance Fees

Dubai properties often come with service charges for maintenance, security, cleaning, and communal amenities. These fees can vary wildly and seriously affect your ROI.

If your Dubai property contract doesn’t include these costs—or only mentions them vaguely—it’s a red flag.

Why this matters:

You need to know your net rental income after all expenses. Many first-time investors get caught out by surprise fees that eat into their profits.

✅ What your Dubai property contract should include:

  • Estimated annual service charges

  • Who is responsible for future increases

  • How charges are calculated

No transparency on service fees? Then no signature.

4. Incomplete Payment Plan with No Exit Options

Dubai developers often offer attractive payment plans—like 60/40 or 70/30 post-handover. But some shady contracts hide the real terms.

They may:

  • Lack a clear payment timeline

  • Include surprise balloon payments

  • Offer no way out if your situation changes

As a UK landlord, you need clarity and flexibility—especially if you’re investing from abroad.

✅ What to check in your Dubai property contract:

  • Clear milestones and payment amounts

  • Penalties for missed payments

  • Options for reselling before handover

If the plan is confusing, you’re being set up to fail.

5. No Mention of Rental Yields or Occupancy Guarantees

If you're buying with the goal of earning passive income, your Dubai property contract should reflect that.

Some developers offer guaranteed rental yields—but fail to back them up legally. Others promise fully managed services but include nothing about it in the contract.

What to be cautious of:

  • “Guaranteed ROI” that’s not legally binding

  • Empty promises about tenant sourcing

  • No clarity on who handles the rental side

✅ Your Dubai property contract should include:

  • Clear rental yield terms (if promised)

  • Duration of the guarantee

  • Management fees and who pays them

If it's not in the contract, it doesn’t exist.

✅ Final Tips Before You Sign a Dubai Property Contract:

  • Always read the fine print—and get legal advice.

  • Avoid verbal promises—they mean nothing unless they’re written.

  • Ask for RERA approval—contracts in Dubai must comply with the Real Estate Regulatory Agency (RERA).

Why UK Landlords Are Investing in Dubai—and How EA Real Estate Protects You

At EA Real Estate, we’ve helped dozens of UK landlords safely navigate the world of Dubai property contracts.

We don’t just find you the right property—we make sure you’re protected. That means:

  • Reviewing your Dubai property contract line-by-line

  • Explaining every clause in simple terms

  • Connecting you with RERA-licensed legal advisors

  • Ensuring your payment plan matches your investment goals

Because a good property is only as good as its Dubai property contract.

Ready to Invest in Dubai Without Risk?

Dubai is full of opportunity—but only if you’re protected. Don’t let a bad contract ruin a great investment.

If you're a UK landlord looking to invest in Dubai, EA Real Estate is your trusted partner. We guide you every step of the way—from selection to signing.

📩 Contact us today for a free Dubai property contract review.

EA Real Estate — Where UK Investors Buy Dubai with Confidence.

 
« Back to Blog