Buying property off-plan means paying for a unit before it exists. Dubai has built a specific legal framework around that risk, administered by the Dubai Land Department and its regulatory arm, RERA. When a project is delayed, changed or abandoned, or when a buyer stops paying, that framework, together with the sale and purchase agreement, decides what each side can do.
Registration in the interim register
Under Dubai Law No. 13 of 2008, off-plan sales must be recorded in the interim real property register. Registration protects the buyer's position and is a precondition for several of the procedures described below. A buyer should obtain and keep the registration certificate.
Escrow accounts
Dubai Law No. 8 of 2007 requires buyer payments to be deposited in an escrow account dedicated to the project and used only for its construction. Escrow does not guarantee completion, but where a project is cancelled by the regulator, refunds follow the escrow framework.
If the buyer defaults
A developer cannot simply terminate and keep the money. Article 11 of Law No. 13 of 2008, as replaced by Law No. 19 of 2017, requires the developer to notify the Dubai Land Department, which verifies the default and gives the buyer 30 days to perform. If the default continues, what the developer may do depends on the completion stage certified by the Department: above 80%, it may keep the contract and claim the balance, or terminate and retain up to 40% of the unit's value; between 60% and 80%, terminate and retain up to 40%; below 60% with works started, terminate and retain up to 25%; and where works have not started for reasons beyond its control, retain up to 30% of the amounts paid. Any excess must be refunded within the periods the law sets. These rules do not apply to land sales.
If the developer delays
These developer-side procedures do not stop a buyer from going to court or to arbitration. Where handover is significantly late, the specifications materially change or the project stalls, a buyer may seek termination with a refund, or compensation, depending on the contract terms, any agreed grace period and the evidence of delay and loss.
In off-plan disputes, the stage of completion and the paper trail usually matter more than the headline price.
Practical steps
Keep the agreement, all receipts, the registration certificate, construction updates and every message about handover dates. Before stopping payments or signing a settlement, take advice on how it affects your position.
Frequently asked questions
Do the same rules apply in Ajman?
No. Ajman has its own regulator and legislation, so off-plan rights there must be assessed under Ajman law.
Can the developer keep everything I paid?
Only where the project is more than 80% complete and the developer chooses to keep the contract, in which case it retains what was paid and claims the balance. If it terminates, retention is capped by the completion stage, and the excess must be refunded.
Legal sources
Dubai Law No. 13 of 2008 regulating the Interim Real Property Register, Article 11 as replaced by Law No. 19 of 2017, Dubai Legislation Portal, dlp.dubai.gov.ae
Dubai Law No. 8 of 2007 concerning Escrow Accounts for Real Estate Development
Dubai Law No. 7 of 2006 concerning Real Property Registration