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Dubai Real Estate Due Diligence Checklist (German)
Dubai Real Estate Due Diligence Checklist. As of 23 May 2026 · Author: Ali Daioub, AXD Real Estate Dubai
Short Answer
Ten mandatory review points for German buyers: developer balance sheet, sub-project-specific RERA escrow number, Title Deed or Oqood, freedom from encumbrances, developer NOC, service charge history in the Mollak system, insurance, Ejari tenancy contract, snagging report, and the German tax side under § 6 AStG (Foreign Tax Act — exit taxation), the Germany–UAE DTA (double taxation agreement), and § 23 EStG (German Income Tax Act — speculative period). Verification exclusively via Dubai Land Department and Mollak — no secondary sources.
Ten Mandatory Review Points
Structural Due Diligence Before Purchase
| # | Review Point | Authority Source | What to Check |
|---|---|---|---|
| 1 | Developer Balance Sheet | DFM / Sobha, Emaar, Damac IR | Tier-1 = DFM-listed developer with audited quarterly reports; review liquidity and order book in relation to one another. |
| 2 | RERA Escrow | Dubai Land Department (DLD) | Sub-project-specific escrow number under Law No. 8/2007 — buyer payments exclusively there. |
| 3 | Title Status | DLD Title Register | Off-plan: Oqood registration before handover; ready: Title Deed in the seller's name, free of encumbrances. |
| 4 | Freedom from Encumbrances | DLD Title Register | No mortgage or garnishment entries; redeem outstanding mortgage before transfer. |
| 5 | Developer NOC | Master Developer Office | No Objection Certificate before transfer — confirms outstanding service charges and permission. |
| 6 | Service Charges | Mollak (RERA system) | Review history per AED/sqft; unusual jumps or arrears are a liquidity signal. |
| 7 | Insurance Status | Owners Association Report | Building and liability policy current; after fire or water damage, review reserve formation. |
| 8 | Ejari Tenancy Contract | Ejari (RERA) | For rentals: remaining term, indexation, and termination option under Tenancy Law 26/2007. |
| 9 | Snagging Report | Independent Inspector | For off-plan handover: defect list within DLP period (typically 12 months construction warranty). |
| 10 | German Tax Side | § 6 AStG · DTA D–UAE · § 23 EStG | Clarify with German tax advisor before contract — exit tax, situs state principle, speculative period. |
Sources: Dubai Land Department (dubailand.gov.ae), RERA Law No. 8 of 2007 — Escrow Accounts, Mollak (mollak.ae), Dubai Financial Market (dfm.ae), Germany–UAE DTA (BGBl. 2010 II No. 25), § 6 AStG, § 23 EStG. As of: May 2026.
The Investor Lens
Due diligence in Dubai differs structurally from Germany at three points: no notary in the German sense, no land register in the Prussian sense, but instead a central state register at the Dubai Land Department. Whoever reads the register directly has seven of the ten review points immediately verifiable. The off-plan focus lies on points two and three: every project has its own RERA escrow number — payments outside this account are not protected by Law No. 8/2007. For ready properties, point five dominates: without the master developer's NOC, the transfer is not completed at the DLD, regardless of whether the seller has already received the purchase price.
What does not belong in the authority checks: the substantive review of the developer balance sheet (point 1), the service charge trend (point 6), and the German tax side (point 10). These three points separate Tier-1 from Tier-3 advisory. A service charge jump history in the Mollak system is often the first indication of an underfunded Owners Association — a risk that rarely appears in seller prospectuses.
The German tax side is often treated as an afterthought. That is backwards. § 6 AStG exit tax for planned relocation of residence, the Germany–UAE DTA, and the § 23 EStG speculative period belong before the reservation, not after contract conclusion. These points require a German tax advisor — not a broker's statement.
Consequence for DACH buyers: the formal due diligence at the DLD is inexpensive and can be completed within a few days; the substantive balance sheet and tax review carries the actual risk. AXD takes on the first nine points before reservation; point ten remains with the client's German tax advisor. Discussed in depth in the general risk analysis for German investors.
Further Reading
Buyer Protection RERA Escrow Explained How sub-project escrow accounts separate buyer funds from developer assets.
Transfer Developer NOC Why no ownership transfer occurs at the Dubai Land Department without NOC.
Risk Analysis Seven Risk Categories Developer, delivery time, exit tax, exchange rate, liquidity, regulation, concentration.
Due Diligence before reservation. In the 30-minute strategy call, we go through the ten review points structurally — balance sheet source, escrow number, title status, service charge trend, German tax side. Without glossy promises, without secondary markups.
Schedule Strategy Call
About the Author
Ali Daioub advises DACH HNWI investors on off-plan allocations in Dubai. Before founding AXD Real Estate Dubai, he worked as a Sales Engineer for linear construction scheduling (Lineare Bauzeitenplanung) and managed international infrastructure and building construction mandates. Based in: Dubai. Correspondence in German and English.
Published: 23 May 2026 · Last updated: 23 May 2026 · Back to Insights
