Short answer
- The rules are in Article 11 of Law No. 13 of 2008, as amended by Law No. 19 of 2020, issued 24 November 2020 and still the version in force.
- Below 60% completion of the whole project, with work started: the developer may terminate and keep up to 25% of the unit value.
- From 60% to 80%: up to 40%. Above 80%: keep the contract and claim the balance, ask the DLD to auction the unit, or terminate and keep up to 40%.
- Work not started for reasons beyond the developer's control, or a project cancelled by RERA: 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Off-plan termination at 25% or 40% in Dubai is a rule buyers in Canada often hear about second-hand, often in an outdated form. The current text is Law No. 19 of 2020, and two details change the arithmetic: percentages apply to the unit value in the contract, and completion is measured on the whole project.
The Article 11 sequence after a buyer defaults
How do the 25% and 40% off-plan termination tiers work for buyers in Canada?
The tier depends on how far the whole project is built, as certified by the DLD under RERA standards. The single unit's progress does not decide it.
Maximum share of unit value a developer may keep
- Notice period
- 30 days
- Source: Law No. 19 of 2020
- Basis
- Unit value in the contract
- Source: Law No. 19 of 2020
- Excess refund
- 1 year or 60 days after resale
- whichever is earlier
- Source: Law No. 19 of 2020
- Court access
- Preserved
- Art. 11(g)
- Source: Law No. 19 of 2020
What does Article 11 of Law 13 of 2008 mean in numbers?
Run the tiers on round, hypothetical figures before reading any developer letter. The cap is a share of the unit value, not of what you paid, so it can exceed your payments.
| Project completion | Paid so far | Developer may keep up to | Excess refundable |
|---|---|---|---|
| 50% (work started) | AED 400,000 | AED 250,000 | AED 150,000 |
| 70% | AED 500,000 | AED 400,000 | AED 100,000 |
| Not started | AED 100,000 | Nothing | AED 100,000 |
Example figures only. In Canadian terms, run the same steps on what you actually sent in CAD, then use the AED amounts on your receipts, since the law works in the contract currency.
is it fair the developer keeps all the money?
What changed with Law 19 of 2020 for Dubai off-plan buyers in Canada?
Two things matter most, according to Al Tamimi (March 2021): a full refund where work has not started, where previously up to 30% could be kept, and completion measured on the whole project instead of the unit.
Article 11(f) treats these rules as public order, so acts that ignore them are null.
What should you check before accepting a termination figure?
Check that the process was followed and the tier is right. The DLD FAQ notes that an investor can ask for a letter from the DLD-approved project consultant confirming the completion percentage before paying a developer's request.
Verifying a termination claim
What should buyers in Canada do around the notice period?
Treat the 30 days as short, given an 8- to 11-hour gap. Dubai is UTC+4 all year; Toronto is 8 hours behind until 1 November 2026, then 9, and Vancouver, on permanent Pacific time since March 2026, is 11 hours behind all year.
If money comes back, ask a Canadian tax adviser how it affects reporting; the CRA's T1135 applies where specified foreign property costs more than $100,000. This is general information only.
See also what follows a missed instalment, all exits compared, the global tiers guide and the Canadian buyers' hub. You can also see the project's registry completion data.
Is the 25% or 40% based on what I paid or on the property price?
Does the 60% threshold refer to my unit or the whole building?
Can a Dubai developer still keep 30% if construction never started?
Can buyers in Canada challenge a termination in court?
Related guides
- GuideOff-plan termination at 25% or 40% in Dubai: the tiers explained with numbers
- Country hubDubai off-plan problems for Canadian buyers: find your stage, then your guide
- Canada guideMissed an off-plan payment in Dubai? What happens next for Canada investors
- Canada guideHow Canadian buyers can cancel an off-plan contract in Dubai, and what each exit costs
Sources
- Law No. 19 of 2020 amending Law No. 13 of 2008 (Dubai Legislation Portal)
- Dubai amends interim registration law (Al Tamimi, March 2021)
- Law No. 13 of 2008 regulating the Interim Property Register (Dubai Legislation Portal)
- Frequently asked questions (Dubai Land Department)
- Questions and answers about Form T1135 (Canada Revenue Agency)
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.