Off-plan resale: assigning an Oqood position before handover
Welcome back to The Conveyance Desk. Last episode we covered power of attorney. Today: off-plan resale — selling an off-plan unit before handover by assigning the Oqood-registered position to a new buyer, the developer's role, and the differences from a standard transfer. General educational content, not legal advice; validate your own SPA's terms. The framing: an off-plan unit is a property under construction — the buyer has signed an SPA with the developer, DLD has registered the buyer's interest as an Oqood, but the unit isn't built and no title deed is issued. The buyer has a registered position, not a title. That position can be sold to a new buyer; the sale is technically an assignment, and the new buyer takes over the original buyer's position, continues the payment plan, and receives handover when the unit completes. The mechanics resemble a standard transfer, but the parties and documentation differ.
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 registered with DLD; if the developer never registered the SPA, there's no Oqood to assign, only a contractual claim, which most assignees won't accept. And the developer must permit assignment under the SPA terms — most do, but some restrict it, requiring waiting periods, minimum holding periods, or pre-approval. Read the SPA before listing: a unit listed without checking its terms may not be assignable when a buyer is found.
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, so the developer must consent, issue a No Objection Certificate for the assignment, update its records, and collect any assignment fee specified in the SPA. Developer assignment fees are typically a percentage of unit value — two percent, three percent, sometimes higher or lower — set in the SPA, so read the clause before pricing the resale. The developer's NOC for assignment is not the same as the NOC for a transfer of ready property: different process, different turnaround, sometimes different fees. Plan for it as a distinct step.
What the new buyer takes over
The new buyer assumes the original buyer's payment plan, the remaining instalments, the projected handover date, the original SPA terms, and the Oqood-registered position. It's a complete substitution: the new buyer becomes the developer's customer and the original buyer's interest is extinguished. Any payments the original buyer already made stay with the unit — they're not refunded. 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.
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 remainder is owed to the developer over the construction period. The new buyer pays the original buyer for the position and continues the payment plan to the developer, so the total cost to the new buyer is the assignment price plus the remaining instalments, and the seller's net proceeds are the assignment price minus what they've already paid in. It's straightforward arithmetic but requires care: sellers sometimes price as if selling a complete unit — they're not; they're selling a partial position, and the new buyer continues paying for the rest.
The trustee process
The assignment is processed through DLD, typically at a Trustee Office. The original buyer, the new buyer and 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 DLD records; the developer's records are updated; the assignment fee is paid to the developer; the DLD lodgement fee and trustee fee are paid. The buyer's manager's cheque to the original buyer represents the assignment price. That's the moment the position transfers — the new buyer leaves as the registered Oqood holder.
Mortgage on off-plan units
Banks lend against Oqood under DLD's “sale associated with an initial mortgage” service for buyers 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, developer and assignment, lends against the Oqood and registers a charge against the Oqood record; at handover, when the title deed issues, the charge converts to a title-deed charge. If the original buyer was financing and is selling before paying off the loan, they must settle their existing financing as part of the assignment — a release-into-assignment structure that works like a release-into-sale on ready property: the settlement figure must be current, the bank must attend, and the discharge must process at the trustee office.
Where assignments derail
Three derailments recur. Developer NOC withheld — service charges in arrears, payment plan in arrears, or disputed snag-list items can stop issuance; address each before listing. Fresh underwriting if the new buyer is financing — bank approval on assigned units takes time, and the mortgage timeline must align with the developer's NOC and the trustee booking, or you get slippage. Original buyer's outstanding payments — if they've fallen behind on the SPA plan, the developer requires arrears cleared before NOC, so either the new buyer covers them in the assignment price or the original buyer clears them first; surfacing this early prevents transfer-day surprises.
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 process is set out in the SPA assignment clause and the developer's published procedure — read both. A direct-developer process can be faster; a trustee-office 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, and bank attendance if financed.
Why assignments are different
The procedural shape resembles a standard transfer — documents prepared, NOC issued, cheques verified, trustee execution, records updated. What's different is who is selling what: in a standard transfer the seller has a title deed and sells the title; in an assignment the seller has a registered position and sells the position, and the new buyer becomes the developer's customer until handover. After handover the new buyer becomes the registered owner of the title deed, the unit becomes a standard property, and any future sale follows the standard transfer process. If you'd like the assignment handled, you can have an independent conveyancer run the assignment and the developer NOC.
Coming next
Next episode: gift transfers between family — the Hiba route, the 0.125 percent fee, eligibility, and why the same property cannot be gifted twice.
Key takeaways
- Off-plan resale is an assignment — you sell the Oqood-registered position, not a title.
- Two conditions: the Oqood is in place, and the SPA permits assignment — read the SPA before listing.
- The developer must consent, issue an assignment NOC, and collect its assignment fee (often 2–3% of value).
- The new buyer takes over the payment plan and remaining instalments — price a partial position, not a whole unit.
- If either side is financed, fresh underwriting or a release-into-assignment must align with the developer NOC and trustee booking.
Frequently asked questions
Can I sell an off-plan property before handover?
Yes, by assigning your Oqood-registered position to a new buyer — provided the Oqood is registered and your SPA permits assignment (some impose waiting or minimum holding periods or pre-approval).
What is an assignment fee on off-plan resale?
A fee the developer charges to consent to the assignment and update its records — typically a percentage of unit value (often around 2–3%), set in your SPA. Read the clause before pricing the resale.
What does the new buyer take over in an off-plan assignment?
The payment plan, remaining instalments, handover date, SPA terms and the Oqood position. The original buyer's payments stay with the unit; the new buyer pays the assignment price plus the developer fee and DLD lodgement fees.