Welcome back to The Conveyance Desk.
In Episode 14, we covered power of attorney for property transfers.
The compliant POA, the attestation chain, the rejection reasons.
Today is Episode 15.
And this one is about off-plan resale.
Selling an off-plan unit before handover.
Assigning the Oqood-registered position to a new buyer.
The developer’s role.
The differences from a standard transfer.
Quick reminder.
This is general educational content.
Not legal advice.
Off-plan SPAs vary by developer.
Assignment terms vary by SPA.
So use this as a guide.
Then validate your own SPA’s terms.
Here is the framing.
An off-plan unit is a property under construction.
The buyer has signed a Sale and Purchase Agreement with the developer.
DLD has registered the buyer’s interest as an Oqood.
The unit is not yet built.
The title deed is not yet issued.
The buyer has a registered position but not a title.
That position can be sold to a new buyer.
The sale is technically an assignment.
The new buyer takes over the original buyer’s position.
Continues the payment plan.
Receives handover when the unit completes.
The mechanics are similar to a standard transfer but the parties and the documentation are different.
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1) The two conditions for resale
An off-plan unit can be resold subject to two conditions.
The Oqood must be in place.
The original buyer’s interest must be registered with DLD.
If the developer never registered the SPA, there is no Oqood to assign.
The buyer has a contractual claim only.
Most assignees will not accept that.
The developer must permit assignment under the SPA terms.
Most do.
Some restrict it.
Some require waiting periods, minimum holding periods, or pre-approval.
Read the SPA before listing the unit.
A unit listed without checking SPA terms is a unit that may not be assignable when a buyer is found.
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2) The developer’s role
The developer is a party to the assignment.
The original buyer is selling the developer’s customer relationship to a new buyer.
The developer must consent.
Issue a No Objection Certificate for the assignment.
Update its records to reflect the new buyer.
Collect any assignment fee specified in the SPA.
Developer assignment fees are typically a percentage of the unit value.
Two percent.
Three percent.
Sometimes higher.
Sometimes lower.
The fee is set in the SPA.
Read the relevant clause before pricing the resale.
The developer’s NOC for assignment is not the same as the developer’s NOC for a transfer of ready property.
It is a different process.
Different turnaround.
Sometimes different fees.
Plan for it as a distinct step.
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3) The new buyer takes over what
The new buyer assumes.
The original buyer’s payment plan.
The remaining instalments.
The projected handover date.
The original SPA terms.
The Oqood-registered position.
This is a complete substitution.
The new buyer becomes the developer’s customer.
The original buyer’s interest is extinguished.
Any payments the original buyer has already made stay with the unit.
They are not refunded to the original buyer.
The new buyer pays the original buyer for the unit at the agreed assignment price.
Plus the developer’s assignment fee.
Plus DLD’s lodgement fees.
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4) The pricing
Off-plan assignment pricing is more complex than ready property pricing.
The original buyer has paid some portion of the SPA price already.
The remaining portion is owed to the developer over the construction period.
The new buyer pays the original buyer for the position.
Plus continues the payment plan to the developer.
The total cost to the new buyer is the assignment price plus the remaining instalments.
The seller’s net proceeds from the assignment depend on the assignment price minus what they have already paid in.
This is straightforward arithmetic but requires care.
Sellers sometimes price the assignment as if they are selling a complete unit.
They are not.
They are selling a partial position.
The new buyer continues paying for the rest.
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5) The trustee process
The assignment is processed through DLD.
Typically at a Trustee Office.
The original buyer.
The new buyer.
A representative of the developer.
All attend.
Documents are verified.
The new Oqood is issued in the new buyer’s name.
The original buyer’s interest is closed in the DLD records.
The developer’s records are updated.
The assignment fee is paid to the developer.
The DLD lodgement fee is paid.
The trustee fee is paid.
The buyer’s manager’s cheque to the original buyer represents the assignment price.
This is the moment the position transfers.
The new buyer leaves the trustee office as the registered Oqood holder.
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6) Mortgage on off-plan units
Banks lend against Oqood under DLD’s “sale associated with an initial mortgage” service.
This is for new buyers who are financing the original purchase.
For assignments, the mechanics are similar but the bank approval is fresh.
The new buyer applies for financing on the assigned unit.
The bank approves the unit, the developer, and the assignment.
Lends against the Oqood.
Registers a charge against the Oqood record.
At handover, when the title deed issues, the bank’s charge converts to a title-deed charge.
If the original buyer was financing the unit and is selling before paying off the loan, the original buyer must settle their existing financing as part of the assignment.
This is a release-into-assignment structure.
It works the same way as a release-into-sale on a ready property.
The settlement figure must be current.
The bank must attend.
The discharge must process at the trustee office.
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7) Where assignments derail
Three derailments come up repeatedly on assignments.
Developer NOC withheld.
Service charges in arrears, payment plan in arrears, or disputed snag-list items can stop the developer from issuing NOC.
Address each before listing.
Fresh underwriting if the new buyer is financing.
Bank approval on assigned units takes time.
The new buyer’s mortgage approval timeline must align with the developer’s NOC timeline and the trustee booking.
Mismatch produces slippage.
Original buyer’s outstanding payments.
If the original buyer has fallen behind on the SPA payment plan, the developer will require those arrears to be cleared before NOC.
The new buyer either covers the arrears as part of the assignment price or the original buyer covers them before transfer.
Either way, surfacing this early prevents transfer-day surprises.
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8) Developer-direct vs trustee-office
Some developers handle the assignment registration internally before lodging with DLD.
Some require the parties to attend the trustee office directly.
The developer’s process is set out in the SPA assignment clause and the developer’s published procedure.
Read both.
A direct-developer assignment process can be faster.
A trustee-office assignment process is more standard.
Either way, the documentation discipline is the same.
Original Oqood reference.
Original SPA.
Identification of all parties.
Developer NOC.
Cheques in the correct names and amounts.
Bank attendance if financed.
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9) Why assignments are different
The procedural shape is similar to a standard transfer.
Documents prepared.
NOC issued.
Cheques verified.
Trustee execution.
Records updated.
What is different is who is selling what.
In a standard transfer, the seller has a title deed and is selling the title.
In an assignment, the seller has a registered position and is selling the position.
The new buyer is becoming a customer of the developer.
That customer relationship continues until handover.
After handover, the new buyer becomes the registered owner of the title deed.
At that point, the unit becomes a standard property and any future sale follows the standard transfer process.
In the next episode, we will cover gift transfers between family.
The Hiba route.
The 0.125 percent fee.
Eligibility.
And why the same property cannot be gifted twice.
That’s all for today.
This was The Conveyance Desk.