10 quick checkpoints before signing a property purchase contract in the Sultanate of Oman

Most of the problems faced by foreign buyers after purchasing a property in the Sultanate of Oman do not arise from bad intentions, but from assumptions that were not verified before signing, such as assuming that the entire project is eligible for freehold ownership while some phases are not, or assuming that the advertised entry price includes real estate residency for the family without checking the value of the specific unit. This list gathers ten practical points that must be checked specifically before signing any property purchase contract in Oman, based on the actual legal differences between the various ownership classifications in the Sultanate.

1. Verifying the legal classification of the area and project

Before any other step, make sure the project is officially classified under one of the freehold categories (ITC, future cities, or qualified Sorouh), not under the usufruct system which is limited in duration and reserved exclusively for residents inside the Sultanate. Also, check that the specific phase or unit you intend to purchase is actually open for foreign ownership, as some projects, like Sorouh, may not have all their phases eligible for this classification even if the main project is classified as such.

2. Verifying the developer's identity and operational record

Find out who is actually behind the execution of the project: is it a government development entity (like Omran or the Ministry of Housing), or a private local or regional development company? Review the developer’s track record in previous projects if available, and their commitment to previously announced delivery dates. This verification is important regardless of the size of the project or its marketing appeal.

3. Reviewing the payment schedule and default clause

Check the required down payment percentage (legally varies between a minimum of 10% in future cities projects, and lower percentages set freely by the developer in ITC projects), and the exact schedule of the remaining payments. Read the default clause specifically: what happens if you are late on a single payment? Are there penalties, or is there a possibility of contract termination?

4. Reviewing the terms of disposal and resale during construction

If there is even a remote chance that you might need to sell the unit or transfer it before final delivery, ask specifically: does the contract allow this? At what payment percentage? Is written approval from the developer required? These terms vary drastically from one project to another, and there is no unified general law governing them in all ITC projects.

5. Verifying actual eligibility for real estate residency

Do not rely on the advertised entry price of the project as an indicator of your eligibility for residency. Check the price of the specific unit you intend to buy: does it exceed 50,000 OMR (to include the family in regular real estate residency)? Does it exceed 200,000 OMR in an ITC project (for eligibility for the ten-year golden residency)? The difference between two units in the same project may completely change your eligibility.

6. Verifying the specifically announced tax exemptions for this project

Do not assume that all freehold projects in Oman automatically grant exemption from income or inheritance tax. Some projects explicitly announce these exemptions as part of their marketing advantages, while others do not mention them, which requires checking this clause specifically in the project documents or with the sales team, not assuming it as a general rule for the whole market.

7. Reviewing the announced delivery date and delay clause

Request the official delivery date written in the contract, not just the estimated date mentioned in marketing materials. Read the delay clause: is there compensation or a specific grace period if the developer exceeds the announced date?

8. Ensuring the right to inspection upon handover

Make sure the contract explicitly grants you the right to inspect the unit and record any observations (area, finishing, appliances, safety of basic systems) before signing the final handover, not mandatory signing upon arrival without prior inspection.

9. Calculating all additional fees, not just the unit price

Ask about the property transfer fee (3% of the sale value upon resale), annual service and maintenance fees, and administrative registration fees. These additional costs must be included in the total budget calculation, not just the advertised unit price alone.

10. Obtaining an independent legal review before signing

Regardless of how clear the contract may appear, having it reviewed by an independent lawyer or real estate advisor before signing is a step that should not be skipped, especially for buyers signing from outside the Sultanate via power of attorney, and who may not have the opportunity to review the original documents personally with ease.

This checklist is the practical difference between a purchase that exactly achieves your goals (residency, return, or permanent housing) and a purchase in which the investor later discovers that their unit does not meet a condition they assumed was automatically fulfilled.

The Imtilak Global team reviews every item on this list with its clients before any signing, from legal classification to the disposal clause during construction, instead of leaving this verification to the buyer alone. Talk to our real estate consultants to review the contract of any project you are considering before signing.

Frequently Asked Questions

What is the most important point in this list that should never be skipped?

Verifying the exact legal classification of the specific unit (not the project as a whole), because incorrect assumptions about this point in particular are the most common and influential on buyers’ decisions later.

Can these points be checked remotely without traveling to Oman?

Yes, most of these points can be reviewed remotely via official project documents and direct communication with the sales team or a trusted real estate advisor, without the need for personal attendance at this stage.

Does this checklist differ between ITC projects and future cities?

Some items, such as the mandatory down payment percentage and the terms of disposal during construction, do indeed differ between the two classifications, making the identification of the project’s classification the first step before applying the rest of the checklist.