Summary
What to check before buying an off-plan unit: the developer's Wafi licence, the escrow account, delay and delivery guarantees, and the contract terms that protect the buyer.
Why off-plan is different
When you buy off-plan you are not buying an existing property but a promise to deliver one in the future. The questions shift from "what is the deed's status?" to "who is the developer, where does my money go, and what happens if the project is delayed or stops?". The biggest risk is not a defect in the unit; it is a project that never completes.
That is why the Kingdom established the Wafi programme (sale and lease of off-plan real estate units) under the Real Estate General Authority, to regulate developers and protect buyers' funds. Understanding how the programme works is half the protection; the other half is your contract.
Check one: the developer and project licence
A developer may sell off-plan only under a Wafi licence for that specific project, not another project and not a general licence. Ask for the licence number and verify it, confirm the developer named in the licence is the same party you will sign with, and that the licensed project covers the unit you are buying (phase, building, unit number).
Check the developer too: commercial registration, financial standing, previous projects and whether they were delivered on time, and any lawsuits from buyers. A developer late on three previous projects will usually be late on the fourth.
Check two: the escrow account
One of Wafi's key safeguards is that buyers' instalments are deposited in a project-specific escrow account at an approved bank, released only for project works according to completion percentages certified by the consultant. Your money cannot be diverted to another of the developer's projects or to its debts.
Before you pay: make sure the contract states the escrow account number, that every instalment is transferred directly into it rather than to the developer's or marketer's account, and keep the transfer receipts. Paying in cash or to a personal account effectively strips you of this protection.
Check three: the contract
An off-plan sale contract must define precisely: the unit's specifications, finishing, net and common areas, the final delivery date, a payment schedule linked to actual completion percentages, compensation for each month of delay, the buyer's right to terminate and recover funds if delay exceeds a set period, and the mechanism for defects after handover with structural and works warranties.
Watch for clauses that let the developer change area, specifications or delivery date "unilaterally", that make delivery "approximate", or that charge you service fees before you take possession. Such clauses are negotiated and amended before signing.
At handover and after
Before taking possession, carry out a documented inspection with a snag list, and sign the handover record only after the items are fixed or recorded in writing. Then comes the transfer of the deed into your name: make sure a separate deed is issued for the unit under the approved subdivision plan, that the transaction is registered for tax, and that the unit is free of any mortgage the developer granted to the project's financing bank.
Off-plan buying is safe when these points are checked before the first instalment. Read the complete due diligence guide, or request a project and contract check before you sign.