Skip to content
Fit Diagnostic (opens in a new tab)
← All guides

Buying off-plan: what protects the buyer

Buying an apartment that has not been built means paying before you can see. Three Dubai laws set out what happens to that money along the way – and exactly where the protection ends.

Written by Updated To be re-checked by

The money does not go to the developer

Law No. 8 of 2007 is the principal protection. It requires an escrow account to be opened in the name of the project, into which the payments of off-plan purchasers and the project's financing are deposited (Article 7), and it dedicates that account exclusively to the construction of that project.

The clause that matters most to a buyer is Article 9: no attachment may be imposed on the funds in the account for the benefit of the developer's creditors. Even if the developer runs into trouble elsewhere in its business, the money you deposited is not available to those creditors.

Article 4 provides that no developer may engage in the business unless recorded in the developers' register and licensed by the competent entities. Article 14 requires the escrow agent to retain 5% of the account's value, released one year after the units are registered in the purchasers' names.1

A transaction that is not registered is void

Law No. 13 of 2008 established the Interim Real Property Register. Article 3 requires every disposition of an off-plan unit to be entered in it, and provides that a sale or other disposition transferring or restricting ownership is void if it is not.

That is a stronger protection than it sounds. It means the same unit cannot be sold twice without it showing, because each registration is checked against the central register.

Article 4 adds a precondition: a developer must take possession of the land before commencing the project, and obtain the required approvals from the competent entities before selling units off-plan.2

What happens if you stop paying

This is the part worth reading before signing rather than after. Article 11 of Law 13/2008 – in the text substituted by Law No. 19 of 2020 – sets out a whole procedure, and it is not conducted between buyer and developer alone.

The developer notifies the Land Department of the non-performance on a prescribed form. Having verified the breach, the Department serves a 30-day notice on the purchaser to perform, and attempts mediation. If the breach persists and no settlement is reached, the Department issues an official document confirming that the developer complied with the procedure, and certifying the unit's completion percentage under the Real Estate Regulatory Agency's rules.

Only then, and according to that certified completion percentage, do the options in the table open to the developer.3

Completion certified by DLDWhat the developer may doWhen the balance is refunded
Over 80%Keep the agreement in force and claim the balance; ask for the unit to be sold at auction and charge the buyer the costs; or terminate and retain up to 40% of the unit value stated in the agreementWithin one year of termination, or within 60 days of the unit being resold – whichever is earlier3
60%-80%Terminate and retain up to 40% of the unit value stated in the agreementThe same timetable3
Under 60%Terminate and retain up to 25% of the unit value stated in the agreementThe same timetable3
The project has not commenced, or was cancelledThe developer refunds all payments made by purchasers, under the procedures in Law 8/2007Under those same procedures3,1

Note the base: at the various completion percentages the retention is calculated on the unit value stated in the agreement – not on what you have actually paid. A buyer who has paid 20% and is terminated at a point where the project is 70% complete may find the liability exceeds their payments. The article's provisions form part of public order, they apply to agreements entered into before the law came into force as well as after, and recourse to a court or to arbitration is preserved.

What happens if the project is not completed

When a project is cancelled, the route is not an ordinary civil claim. Decree No. 33 of 2020 established the Special Tribunal for Unfinished and Cancelled Real Property Projects in the Emirate of Dubai, replacing the committee that operated under Decree No. 21 of 2013.

Its jurisdiction covers claims, applications and appeals relating to unfinished projects; claims and applications concerning cancelled projects and their liquidation; grievances against the Real Estate Regulatory Agency's cancellation decisions; determination of the rights of investors, purchasers and developers in such projects; and execution proceedings connected to them.

Alongside this, Article 11 in its current text provides that where a project has not commenced or has been cancelled, the developer refunds all payments made – under the procedures in the escrow accounts law.4,1

What you can check before signing

Everything below is public, free, and takes less than an hour. None of it depends on us, on you, or on any broker – these are the Land Department's own sources.

  1. That the developer is registered and licensed

    Article 4 of Law 8/2007 bars anyone not recorded in the developers' register and licensed from engaging in real estate development. The Dubai REST app shows information on certified developers.1,6

  2. That the project is registered, and its completion percentage

    The Land Department's project status enquiry returns status and completion percentage by plot number, project number or project name.5

  3. The escrow account number

    Dubai REST shows the project's escrow account number, alongside completion percentage, current photographs and payments falling due. Compare that number with what the contract says, and with what you were given for the transfer.6

  4. That the unit was registered in your name

    After the first payment and the Oqood registration, ask for proof of the registration. Article 3 of Law 13/2008 makes an unregistered disposition void – this is not a formality that can be caught up on later.2

  5. What the contract says about termination

    Article 11 sets ceilings on what a developer may retain, not floors. Read what your contract says and compare it with the table above – in particular, what the calculation base is.3

What the law does not do for you

Everything above governs what happens to the money, and what happens when something goes wrong. None of it makes a transaction a good one.

  • The law does not guarantee a handover date. An escrow account protects what the money is for, not the timetable.
  • The law does not guarantee value. Nothing in it bears on whether you paid a sensible price, or whether there will be anyone to rent to.
  • The law does not check the developer's financial standing for you, the build quality of their earlier projects, or whether they have delivered on time before.
  • These protections operate after the fact. They set out what you are owed once something has gone wrong – they do not stop it going wrong.

The three mistakes we see repeat – working with a young or financially unstable developer, choosing a project that does not fit the purpose you came in for, and relying on inaccurate data – are not mistakes the legislation prevents. They are precisely what is left once every protection above has done its job.

Common questions

Where does the money go when I pay for an apartment that has not been built?
Into an escrow account opened in the project's name, receiving purchasers' payments and the project's financing (Article 7 of Law 8/2007), and dedicated exclusively to its construction. Under Article 9, no attachment may be imposed on those funds for the benefit of the developer's creditors. The protection attaches to the escrow account – make sure that is the account you are transferring to.
What happens if I stop paying part-way through?
The developer notifies the Land Department, which serves a 30-day notice and attempts mediation; if the breach persists it certifies the completion percentage. Under the current text of Article 11, termination allows the developer to retain up to 40% of the unit value stated in the agreement where completion is above 60%, and up to 25% where it is below 60%. Note the base is the unit value in the agreement, not the amount you have paid.
And if the developer does not deliver?
Where a project has not commenced or has been cancelled, Article 11 in its current text provides that the developer refunds all payments made, under the procedures in Law 8/2007. Disputes over unfinished or cancelled projects, including grievances against the Regulatory Agency's cancellation decisions, are heard by the Special Tribunal established by Decree No. 33 of 2020.
How do I check a project is real before I pay?
Through the Land Department's project status enquiry, by plot number, project number or name – it returns status and completion percentage. The Dubai REST app gives completion percentage, current photographs of the project, the escrow account number and payments falling due. Both checks are public and free.

Sources

Every link here is to a publication of the issuing body itself. If something on this page looks wrong to you, the source governs – not us.

  5. Real Estate Project Status Enquiry – DLD online service

    Dubai Land Department (DLD)Checked 8 August 2026

  6. Dubai REST – the DLD's official application

    Dubai Land Department (DLD)Checked 8 August 2026

This isn't just another deal – it's a process

We'll start with a personal call, with no obligation, to understand what suits you.

Book a call

Or: check first whether it's a fit