Short answer
- Article 11 of Law No. 13 of 2008, as amended by Law No. 19 of 2020, sets how much a Dubai developer may keep when a buyer defaults and the contract is terminated.
- Below 60% completion of the whole project (with work started on site): up to 25% of the unit value. From 60% to 80%: up to 40%.
- Above 80%, the developer chooses: keep the contract and claim the balance, ask the DLD to auction the unit, or terminate and keep up to 40%.
- If work has not started for reasons beyond the developer's control, or RERA cancels the project, all payments must be refunded.
- Any excess is refunded within one year of termination or 60 days of resale, whichever is earlier.
Off-plan termination at 25% or 40% in Dubai is not a penalty a developer can pick freely. Article 11 of Law No. 13 of 2008, as amended by Law No. 19 of 2020, ties the maximum to how far the whole project has been built, and it applies only after a set notice process through the Dubai Land Department (DLD).
Below you will find the tiers, the steps that must come first, worked numbers and where to find the completion figure. Projects outside Dubai follow different rules.
How do the off-plan termination 25% and 40% tiers work in Dubai?
The tier depends on the completion percentage of the whole project, measured under RERA standards, not your single unit. The DLD states that percentage in a document it issues to the developer after the notice period ends.
| Whole-project completion | Developer's options | Maximum the developer may keep |
|---|---|---|
| Work not started (reasons beyond developer's control) or RERA cancelled | Must refund | Nothing: all payments refunded |
| Below 60%, work started on approved designs | Terminate | Up to 25% of the unit value |
| 60% to 80% | Terminate | Up to 40% of the unit value |
| Above 80% | Keep contract and claim balance; DLD auction; or terminate | Up to 40% if terminating |
Maximum share of unit value a developer may keep on termination
"Up to" is a ceiling, not a fixed charge. The percentage applies to the unit value stated in the contract, not to the amount the buyer has paid so far.
What does Article 11 of Law 13 of 2008 require before termination?
The developer cannot terminate straight away. The amended Article 11 sets a notice process run through the DLD.
Steps before a developer may terminate
Article 11(f) says the rules are part of public order and that failing to follow them makes the act null. Article 11(g) says the rules do not stop the buyer from going to court or arbitration.
…and will I lose all the amounts I paid?
How much can a developer keep if I stop paying? Worked examples
The examples below use round, hypothetical numbers to show the arithmetic. Each assumes a contract unit value of AED 1,000,000 and that termination follows the full DLD process.
Example: project 45% complete, buyer paid AED 200,000
The tier is below 60%, so the developer may keep up to 25% of the unit value, AED 250,000. That exceeds the AED 200,000 paid, so no excess is left to refund.Example: project 45% complete, buyer paid AED 400,000
The cap is still AED 250,000, so at least AED 150,000 must be refunded within the deadline.Example: project 70% complete, buyer paid AED 500,000
The tier is 60% to 80%, so the developer may keep up to 40%, AED 400,000. At least AED 100,000 must be refunded.Example: project not started, buyer paid AED 150,000
If work has not started for reasons beyond the developer's control, the developer must refund all AED 150,000.
What changed with Law 19 of 2020 for Dubai off-plan buyers?
Law No. 19 of 2020, issued 24 November 2020, is the version of Article 11 in force. It replaced earlier texts from 2009 and 2017, and two changes matter most to buyers.
- Completion measured on
- Whole project
- previously the unit
- Source: Al Tamimi, 2021
- Work not started
- Full refund
- previously up to 30% could be kept
- Source: Law No. 19 of 2020
- Notice period
- 30 days
- Source: Law No. 19 of 2020
- Excess refund deadline
- 1 year or 60 days after resale
- whichever is earlier
- Source: Law No. 19 of 2020
is it fair the developer keeps all the money?
How do you find the whole-project completion percentage?
The official figure for a termination is the one the DLD states in its document after the notice period. Before that point, you can see the current percentage yourself.
The DLD's Dubai REST app, under Project Status (Mashrooi), shows a registered project's completion percentage, status, escrow details and inspection details. An independent completion report from RERA's technical auditor costs AED 15,000 per unit or villa, according to the DLD's FAQ.
Knowing the percentage early matters because the gap between 59% and 60% moves the cap from 25% to 40%.
To track progress before each installment, see checking construction progress before payment. If a payment has already been missed, see what happens after a missed off-plan payment. For exits that avoid default, compare the routes in canceling an off-plan contract, and check the official project data before choosing.
Buying from the UK, US, Canada or Australia?
- UK: Article 11 questions for UK buyers
- US: a termination-tier playbook for US buyers
- Canada: termination checklist for Canadian buyers
- Australia: termination decision tree for Australian buyers
Is Article 11 of Law 13 of 2008 still in force?
How much can a developer keep if I stop paying in Dubai?
Is the 25% or 40% taken from what I paid or the property price?
Does Law 19 of 2020 apply to Dubai off-plan projects outside Dubai?
Related guides
Sources
- Law No. 19 of 2020 amending Law No. 13 of 2008 (Dubai Legislation Portal)
- Law No. 13 of 2008 regulating the Interim Real Property Register (Dubai Legislation Portal)
- Dubai amends interim registration law (Al Tamimi, March 2021)
- Project Status (Mashrooi) service guide (Dubai Land Department)
- Frequently asked questions (Dubai Land Department)
This guide is general information, not legal advice. Laws and procedures change; check the official source before acting. Published 12 October 2026, last updated 12 October 2026.