Dubai is known as a city where investors rush into to get hold of the best investments in the world. Buying property in Dubai is a dream, but to avoid real estate scams, you need to stay alert and well-informed. If you want to invest here, it’s important to know how to protect yourself. Many people have lost large sums because they rushed or trusted the wrong person. The truth is, buying property safely in Dubai takes patience and careful checking.
Why Real Estate Scams Happen in Dubai
Dubai’s property market moves very fast. Scammers take advantage of this speed. Many buyers come with large amounts of money and want to close deals quickly. When you hurry, it’s easy to miss warning signs. Scammers also know that most buyers don’t live in Dubai and can’t visit the property themselves.
The Dubai Land Department (DLD) is the official government authority that regulates real estate here. They make the rules and monitor every transaction. Knowing the role of the DLD is your best protection. If a deal doesn’t involve the DLD, it’s probably a scam.
Don’t let scammers get the chance.
Common Real Estate Scams and How to Avoid Them in Dubai
Buying property in Dubai is exciting, but it’s important to be aware of common scams. Here are some of the most frequent tricks and how to protect yourself.
1. Blocked Unit Scam: A Common Real Estate Scam to Avoid in Dubai
Some buyers pay deposits for units that are already blocked due to loans, legal issues, or existing reservations.
How to avoid it:
Always confirm the unit’s status with the Dubai Land Department (DLD) or ask your agent to check with the developer directly.
2. Fake Ownership Cases in Dubai: How to Avoid Property Scams
In this scam, someone pretends to be the legal owner of a property they don’t actually own.
How to avoid it:
Ask for the original title deed and verify ownership using the Dubai REST app or by visiting a DLD Trustee Office.
3. Fake Power of Attorney (POA)
Scammers may use forged or expired POAs to act as the seller or authorized person.
How to avoid it:
Only accept POAs that are attested in the UAE. Confirm their validity through a DLD trustee center. If the POA was issued outside the UAE, make sure it is fully legalized.
4. Unlicensed Brokers: A Major Risk in Dubai Real Estate Scams
Many scams involve individuals posing as agents without any official RERA certification.
How to avoid it:
Ask for the agent’s RERA card and verify it through the DLD website or Dubai REST app before you proceed.
5. Off-Plan Project Scams
Fraudsters may sell off-plan units in projects that are either not registered or lack an escrow account.
How to avoid it:
Ensure the project is registered with the DLD and that all payments go into a DLD-approved escrow account, not to the developer directly.
6. Fake Rental or Subletting
A scammer may rent a unit using multiple post-dated cheques, then illegally sublet it to someone else before disappearing.
How to avoid it:
Before signing a rental agreement, request:
- A copy of the title deed
- The landlord’s passport and Emirates ID
- Proof that the person renting the property is the legal owner or has a valid POA
Also, make sure to register your tenancy through the Ejari system to be fully protected.
7. High-Pressure or Unrealistic Deals
Some agents may pressure you with statements like “last unit,” “limited-time offer,” or “guaranteed 50% ROI” to rush your decision.
How to avoid it:
Don’t let urgency cloud your judgment. Take your time, ask questions, and verify all information.
8. Paying in Cash or to the Agent’s Name
Paying cash or writing a cheque in the agent’s name is one of the biggest mistakes investors make.
Why it’s risky:
Cash has no legal proof, and if the agent disappears with your cheque, it’s hard to recover your money.
How to avoid it:
- Always issue cheques in the name of the seller, developer, or DLD-approved trustee/escrow account.
- Never pay large amounts in cash.
- If a receipt is required, make sure it’s official and stamped by the company, not just the agent.
- For off-plan purchases, double-check the escrow account details through the DLD.
Pro tip: If anyone asks you to pay in cash or in their personal name, walk away immediately.
For official regulations, always refer to the Dubai Land Department website.
How to Buy Property Safely in Dubai
Buying property in Dubai can be a smart investment, but it’s important to take careful steps. A friendly agent or a great sales pitch is not enough. You need to check everything properly. Here’s what to do:
1. Verify the Agent and Real Estate Company
Make sure you are dealing with a licensed real estate agent. In Dubai, every agent must have a valid RERA ID and carry a RERA card.
- Visit the Dubai Land Department (DLD) website or use the Dubai REST app
- Enter the agent’s name or license number to check their registration
2. Check the Property and Title Deed
To avoid real estate scams Dubai buyers face, always verify the title deed and check the seller’s credentials. Always confirm that the person selling the property is the actual legal owner. Ask them to see the original title deed, which proves ownership.
You can request the DLD to confirm the owner’s name and legal status.
Also, check if the property is involved in any loans, disputes, or legal issues.
If the seller refuses to show these documents, it’s a red flag. Don’t move forward.
3. Understand Ejari (For Rentals)
If you’re renting a property, your rental agreement must be registered with Ejari. Ejari is the official system used to register rental contracts in Dubai.
It protects both tenants and landlords by making contracts legal and transparent. If a landlord or agent avoids Ejari, they may be hiding something. Avoid such deals.
4. Pay Deposits the Right Way
When you buy a property, you’ll be asked to pay a deposit, usually 10% to 20%. Never transfer money to the agent’s or seller’s personal bank account. Use a manager’s cheque, made out to the seller or a DLD-approved trustee account. Never pay large amounts in cash. Make sure payments are held safely until the deal is complete.
This prevents scams and keeps your money secure.
5. Know the Role of the Dubai Land Department (DLD)
The DLD is the government body that manages and approves all property deals in Dubai. They help keep the market safe and legal. Every sale, resale, or off-plan purchase must be registered with the DLD. For off-plan properties, the Oqood system is used. You’ll receive an Oqood certificate, which acts as proof of ownership until the title deed is issued. DLD also charges a 4% transfer fee, which is standard for all sales.
In short, if you want to buy property safely in Dubai, always take your time, verify every detail, avoid shortcuts, and make sure your money goes through official channels. Following these steps will give you peace of mind and protect your investment.
Follow these best practices to confidently avoid the real estate scams Dubai has seen in recent years.
At Milestone Homes, we guide our clients through every part of this process, ensuring your property journey in Dubai is safe and stress-free.
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