View of Dubai. It sets the scene for this guide.
Escrow account Dubai: project checks and your options
A late handover inside the SPA's grace period is usually not a breach. Data context: Dubai South, median price per sq ft: AED 1,655.
Beyond it, you can claim through the real estate court; the Land Department can't cancel your contract for you. If RERA cancels the project, the developer must refund everything you paid.
All data periods and source dates
First, separate two different rules
A late handover does not give you an automatic right to stop paying. Check your contract’s completion clause and project status first.
Your claim against a late developer differs from the developer’s claim when you stop paying. When the developer is late, read your sale and purchase agreement (SPA). General contract law and the courts also govern your remedies. RERA can cancel projects.
When the buyer stops paying, Article 11 of Law No. 13 of 2008 says how much of the contract value the developer may keep. These are the well-known 80%, 60% and 25% bands. They set out the developer’s remedies. They do not give the buyer an exit menu.
Start with the delay claim, then check the consequences of missed payments.
Step 1: check how far the project really is
Before deciding anything, look up the official status. The Land Department’s Project Status Enquiry shows project progress. Search by land number, project number or project name. It’s free and instant on:
- the DLD website (Information Services);
- the Dubai REST app (“Project Status”, formerly the Mashrooi app);
- WhatsApp on 8004488.
Dubai REST shows active, finished or cancelled status, completion %, registration date, start date, projected completion date, inspection reports and photos. The percentages come from periodic inspections, so they can lag what’s on site.
Step 2: read your SPA’s completion clause
The handover grace period is a term of your contract, not a law. Most Dubai SPAs allow 6 to 12 months after the anticipated completion date. Passing that date doesn’t end the contract on its own. You generally need the delay to run beyond the contractual extension before the developer is in breach.
Step 3: know where a claim goes
Reporting a stalled project and asking to end your purchase use different routes. The table shows where each claim goes.
| What you want | Where it goes |
|---|---|
| Report a stalled project | Dubai Land Department / RERA. RERA contacts the developer, gives a deadline to fix it, and in serious cases can cancel the project |
| Cancel your purchase, get a refund or compensation | The Dubai Courts real estate court, or arbitration if your SPA has an arbitration clause. The Land Department closes these complaints “for lack of jurisdiction” |
| A project RERA has cancelled | The Special Tribunal for cancelled real property projects (Decree No. 21 of 2013, restructured in 2020). Ordinary courts can’t hear these |
Source: Dubai off-plan legislation and DLD guidance. Full source links are below.
On 1 June 2026, contract law changed. Federal Decree-Law No. 25 of 2025 replaced the old Civil Transactions Law. The new code generally does not apply to contracts signed before that date. If your SPA predates it, a lawyer will work from the old law.
You don’t have to pay ahead of construction
When asked for a stage payment, ask for the completion percentage in writing from a Land Department-approved consultant. The buyer is not obliged to pay unless the project is confirmed to have reached that stage.
How your money is protected: escrow
Law No. 8 of 2007 gives each off-plan project its own escrow account, used only for its construction. The developer’s creditors cannot touch it. A developer also needs the Land Department’s written approval to advertise or sell off-plan.
Escrow money can only pay the project’s contractors, consultants and marketing, with marketing capped at 5% of sales. If a project is not completed, the escrow agent must consult the Land Department. It must ensure completion or refund buyers.
Construction must start within 6 months of permission to sell off-plan. Without an acceptable reason, the developer risks removal from the register.
If RERA cancels the project
The developer must refund everything you paid, under the escrow law. Refunds are due within 60 days of the cancellation decision. That period can be extended. Unpaid refunds go to court.
If you stop paying: what the developer can keep
Article 11, as amended by Law No. 19 of 2020, sets a procedure first. The developer notifies the Land Department, which gives you 30 days’ written notice and may try to mediate. If you still don’t pay, the developer’s options depend on how complete the project is:
| Project completion | Developer can | Most it can keep |
|---|---|---|
| Above 80% | Keep the contract and claim the balance, ask the Land Department to auction the unit, or terminate | 40% of the contract value if it terminates |
| 60% to 80% | Terminate | 40% of the contract value |
| Below 60%, work started | Terminate | 25% of the contract value |
| Work never started for reasons beyond its control, or RERA cancelled the project | Must refund | Nothing: full refund |
Source: Dubai off-plan legislation and DLD guidance. Full source links are below.
The developer must refund anything above its share by the earlier deadline:
- 1 year after termination.
- 60 days after reselling the unit.
The share is a percentage of the contract value, not of what you’ve paid. If you’ve paid 10% on a project below 60%, there’s nothing left over to refund.
The old 30% deduction when work never started is out of date. The 2020 amendment changed this to a full refund.
After handover: defects
Under Law No. 6 of 2019, the developer is liable for structural defects for 10 years from the completion certificate. Liability for installations lasts 1 year from handover. Snag before you accept the keys, and keep a dated record.
Talk to someone who handles this
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Find a project's recorded bank
768 named project records across developer register groups. Snapshot: 22 Oct 2026. Open the saved records. Search by project or developer group. You can also search by bank or community.
Names and facts are copied from the saved project register, including blanks. Similar project names may repeat across developer groups; check the full project identity. A bank name is not an account number, account balance, current payment instruction, legal protection or confirmation that a payment is valid. Recorded progress is not a completion forecast. For current project details, use the registry links at the end.
Source update: 26 Oct 2026. Source for rents, yields and project records: Dubai Data (datadubai.ae), Continental Club Property, based on Dubai Land Department open data, data to 22 Oct 2026, licensed CC BY 4.0. Publisher contract sample, register data to 22 Oct 2026; the lease period is not stated. Publisher-reported gross yields use the publisher matched-segment sale-price denominator, not this page’s sale median; the matched-sale reporting period is not stated.
Registered data for your comparison
These are market comparisons. They do not decide ownership eligibility, legal rights, refunds, approved service charges or the permitted increase on your lease.
Registered area prices for a purchase comparison
Compare area sale medians, annual price changes and transaction counts in Dubai.
| Registry area | Median price per sq ft | Year-on-year change | Sales in twelve months |
|---|---|---|---|
| Dubai South | AED 1,655 | +4.1% | 15,385 |
| Jumeirah Village Circle (JVC) | AED 1,493 | +4.5% | 11,715 |
| Dubai Land Residence Complex (DLRC) | AED 1,467 | +7.9% | 8,187 |
Busiest registry areas by twelve-month sales, with at least twenty sales in each area.
Data last updated .
- DLD sales: to . Twelve-month registered-sales window.
- DLD annual-change comparison: to . Previous twelve-month window used for the year-on-year column, where available.
Source update: 26 Oct 2026. Source: Dubai Land Department open data via Dubai Pulse, re-published by Dubai Real Estate Data (dataset), licensed CC BY 4.0. Sales to 5 Oct 2026. aggregated to medians; non-residential, land and flagged rows excluded.
Questions people ask
These answers connect the guide’s main questions with the rules and property data discussed above.
My developer sent a 12-month extension notice. Is that allowed?
Most Dubai sale and purchase agreements allow a grace period of 6 to 12 months after the anticipated completion date. Within the period your SPA allows, the developer is usually not in breach. Check the exact clause in your SPA.
Can the Dubai Land Department cancel my off-plan purchase because of the delay?
No. The Land Department says it has no authority to terminate a developer-buyer contract at the buyer's request. Termination, refunds and compensation go to the Dubai Courts real estate court. Arbitration applies if your SPA has an arbitration clause.
What happens to my money if RERA cancels the project?
The developer must refund all payments, following the escrow law. Refunds are due within 60 days of the cancellation decision. Disputes go to Dubai's special tribunal for cancelled projects.
Do I have to pay the next instalment if construction hasn't reached that stage?
You can ask for the completion percentage in writing from a Land Department-approved consultant. The buyer need not pay a stage payment unless the project is confirmed to have reached that stage.
If I stop paying, how much can the developer keep?
Article 11 as amended in 2020 sets the limits. Above 60% completion, the limit is 40% of the contract value. Below 60%, with work started, it is 25%. Nothing can be kept if work never started for reasons beyond the developer's control. The developer must first go through the Land Department's 30-day notice.
What registered price per sq ft is shown for Dubai South?
The median price of homes sold is AED 1,655 per sq ft. This covers Dubai South. It covers the displayed twelve-month window. It compares the area, rather than quoting a price for one home.
See the supporting tableHow many sales support the Dubai South price comparison?
The Dubai South comparison has 15,385 registered home sales. It covers the displayed twelve-month window. This counts transactions, not homes offered for sale.
See the supporting tableHow did Dubai South's registered price per sq ft change?
The median price per sq ft of homes sold changed +4.1%. This compares the displayed twelve-month window with the previous one. These are recorded sales in the two dated windows.
See the supporting tableWork it out with real numbers
Use these linked comparisons and tools to check the figures behind your next decision.
Sources
Rule review date: 12 October 2026.
- Law No. 13 of 2008 regulating the Interim Real Property Register
- Law No. 19 of 2020 amending Law No. 13 of 2008 (current Article 11)
- Law No. 8 of 2007 on escrow accounts for real estate development
- Dubai Land Department: Real estate project status enquiry
- Dubai Land Department: Frequently asked questions
- Decree No. 21 of 2013 (special tribunal for cancelled projects)
- Law No. 6 of 2019 on jointly owned property (developer defect liability)
- Afridi & Angell: Off-plan construction delays, options for resolution in Dubai
- Chambers: UAE Civil Transactions Law changes (Decree-Law 25 of 2025)
This guide explains the rules in plain language. It is not legal advice; for a dispute, check with the Dubai Land Department or a lawyer.