Dubai law gives no automatic refund for a late off-plan handover; delay rights come mainly from your sale and purchase agreement (SPA). A full refund rule applies when RERA cancels a project by a final reasoned decision, or the developer never started for reasons beyond its control and without fault: the developer must refund all payments through the escrow system (Law No. 13 of 2008, Article 11, as replaced by Law No. 19 of 2020). Refund and termination claims go to court or arbitration, not a DLD complaint.
Who this guide is for
This guide is for people who bought an off-plan unit in Dubai and face a missed handover date, a stalled site, or a cancelled project. It explains which body deals with what.
Projects inside the DIFC are outside the special judicial committee described below. If you bought in another emirate, different laws apply.
What the law says about delays and refunds
Escrow (Law No. 8 of 2007). Buyers' payments for off-plan units must go into a project escrow account held by an approved bank. The account is used only for that project, and the developer's creditors cannot attach it (Article 9). If a project cannot be completed, the escrow agent, after consulting the DLD, must act to protect depositors, either to complete the project or to refund them (Article 15).
The 80%, 60% and 25% figures. These are often misquoted. Article 11 of Law No. 13 of 2008, now in the form set by Law No. 19 of 2020, lists what a developer may do when the buyer fails to pay, after a 30-day DLD notice. The figures depend on how far the project is complete:
- more than 80%: keep the contract and claim the balance, ask the DLD to auction the unit, or terminate and keep up to 40% of the unit price;
- 60% to 80%: terminate and keep up to 40% of the unit price;
- work started but under 60%: terminate and keep up to 25% of the unit price.
These rules do not measure a buyer's rights when the developer is late. Earlier versions of Article 11, under Law No. 9 of 2009 and Law No. 19 of 2017, used similar thresholds. The same article, in paragraph (b), says the developer must refund all amounts received where it did not start work for reasons beyond its control, or where RERA cancels the project by a final reasoned decision. The Arabic text of Law No. 19 of 2020 confirms this.
Cancelled projects. Under Executive Council Resolution No. 6 of 2010, RERA may cancel a project on grounds such as failing to start work without valid reason or gross negligence (Article 23). RERA must then ask the escrow agent (or the developer, for money paid outside escrow) to refund buyers within 14 days of cancellation. If escrow funds are short, the developer must pay the balance within 60 days unless RERA extends this. RERA then refers non-payment to the judicial authorities (Articles 25 to 27).
Grace periods. We found no general grace period for late handover in these laws. Check the completion date, any grace period and any delay compensation clause in your SPA.
Who handles what?
| Your situation | Where to go | What to know |
|---|---|---|
| You want the latest completion percentage | DLD Project Status Enquiry | On the DLD website, the Dubai REST app or WhatsApp |
| A payment is demanded but you doubt the stage is reached | The developer, then RERA | DLD FAQ: you may ask for a consultant's letter confirming completion; a RERA audit report costs AED 15,000 |
| The developer will not register your contract | DLD Real Estate Registration Assurance section | DLD FAQ lists this route |
| Misleading adverts, broker or company misconduct | DLD real estate violations complaint | Not for contract disputes, termination, refunds or compensation; contracts over six months old are not considered |
| Late handover and you want termination, a refund or compensation | Dubai Courts, or arbitration if your SPA says so | DLD FAQ: the DLD cannot terminate the contract and can only try to reconcile the parties |
| The project is stalled or cancelled | Special Tribunal (judicial committee) for Unfinished and Cancelled Real Property Projects | Decree No. 33 of 2020; buyers submit details through the "Incomplete and Cancelled Projects Committee" service in Dubai REST |
| You and the developer agree a settlement | DLD settlement implementation service | The developer applies through the Oqood portal; fee AED 3,000 plus AED 20 in small fees as of September 2026 |
Under Decree No. 33 of 2020, the committee decides claims about unfinished and cancelled projects in Dubai, except those inside the DIFC. Other courts must refer such cases to it. Its decisions cannot be challenged by ordinary appeal and are enforced through the Dubai Courts execution court. Its cases are exempt from court fees. Decree No. 29 of 2024 still cites Decree No. 33 of 2020 among the legislation in force. Confirm with the DLD whether your project is before the committee.
Step by step
- Read your SPA. Note the completion date, grace period, delay clause, termination clause and dispute clause.
- Check the project status. Use the DLD Project Status Enquiry and save the result with the date.
- Check your registration. Confirm your unit is on the interim register (Oqood).
- Keep paying only for stages reached. Ask for the consultant's letter before paying a stage payment you doubt.
- Write to the developer. Ask for the revised date and their position on compensation or refund.
- Record every payment. Keep receipts showing payment into the escrow account.
- Choose the right forum. Use the table above. The UAE authority navigator and our guide to which UAE court handles what can help.
- Register with the committee if the project is stalled or cancelled. Use the Dubai REST service.
- Diary every deadline. Use the legal deadline organiser.
Documents checklist
- SPA, reservation form and any addendum
- Oqood or interim register certificate
- Payment schedule and all receipts, including escrow payment proof
- Developer letters on progress and revised dates
- Consultant letters on completion stages
- DLD project status results, with dates
- Your letters and emails to the developer
- Emirates ID or passport
- Power of attorney, if someone acts for you. See powers of attorney in the UAE
Common mistakes
- Relying on the 80% and 60% figures. They govern developer action against a defaulting buyer.
- Filing a DLD complaint for a refund. The violations service does not handle refunds or termination.
- Stopping all payments without advice. Missing a valid instalment can let the developer act under Article 11.
- Ignoring the arbitration clause. Your SPA may send disputes to arbitration.
- Waiting too long. Evidence and options can weaken over time.
- Paying outside escrow. Payments for off-plan units should go into the project escrow account.
When to speak to a licensed lawyer
Consider licensed advice before terminating an SPA, stopping payments, or starting a court or arbitration claim, and if your project is before the special committee. Delay claims turn on the contract wording and the evidence. The free case check can help you set out the facts first, and CaseDaleel can introduce an independent licensed professional only if you choose.
Frequently asked questions
Can I get a refund if my off-plan handover is late?
Not automatically; a late handover is mainly a contract matter under your SPA, decided by the courts or arbitration if you cannot agree.
When must a developer refund everything I paid?
Under Article 11(b), where RERA cancels the project by a final reasoned decision, or the developer did not start work for reasons beyond its control.
Does the DLD handle off-plan refund complaints?
No, the DLD violations complaint service excludes refunds, termination and compensation, and the DLD FAQ says it can only try to reconcile the parties.
Can I claim the rent I paid while waiting?
No law we found sets a formula for this, so it depends on your SPA and on what a court or arbitrator accepts.
What is the special judicial committee?
It is the body under Decree No. 33 of 2020 that decides claims about unfinished and cancelled projects in Dubai, outside the DIFC, with final decisions.
How do I check if my project is cancelled or stalled?
Use the DLD Project Status Enquiry on the DLD website, Dubai REST app or WhatsApp.
Do the 60% and 80% rules protect buyers?
No, those thresholds set what a developer may keep or do when a buyer defaults on payments.
Official sources
- Dubai Legislation Portal — Law No. 19 of 2020 amending Law No. 13 of 2008 (interim real property register)
- Dubai Legislation Portal — Law No. 8 of 2007 concerning escrow accounts
- Dubai Legislation Portal — Decree No. 33 of 2020 on the special tribunal for unfinished and cancelled projects
- Dubai Land Department — Frequently asked questions
- Dubai Land Department — Complaint against a real estate company
General information, not legal advice. CaseDaleel is not a law firm.