What it costs to walk away from an off-plan unit in Dubai
Behind on your payment plan? See what you keep if you sell, and what you lose if you stop paying.
Should you sell, or walk away?
Three questions. Both answers below β nothing to read.
How far along is the building?
What is it worth today?
If you sell now
AED 353,725
in your pocket, after the agent and the developer's fee.
If you walk away
AED 65,000
back β the developer keeps AED 310,000.
Your floor price is AED 480,082. Sell above that and you beat walking away.
You have paid 48% of the price β above the 35% most developers want before they approve a transfer, so you can sell.
An estimate from your own figures β not legal advice. The caps are the maximum a developer may keep under Article 11 of Law No. (13) of 2008 as amended by Law No. (19) of 2020; what yours does is a separate question. Nothing you type is saved or sent anywhere.
The detail, if you want it
What the law lets the developer keep
When an off-plan buyer stops paying, the developer cannot keep whatever the contract says. Article 11 of Law No. (13) of 2008, as amended by Law No. (19) of 2020, caps the deduction and ties it to independently verified construction progress.
| Construction progress | Developer may keep | What that means |
|---|---|---|
| Construction has not started | Nothing | You are refunded in full. |
| Under 60% built | Up to 25% of the unit price | Anything you paid above that comes back. |
| 60β80% built | Up to 40% of the unit price | The band where most buyers lose everything they have paid. |
| Over 80% built | Up to 40% β or more | The developer may instead hold you to the contract and pursue the whole outstanding balance, or ask DLD to auction the unit. |
| RERA has cancelled the project | Nothing | Full refund from the escrow account, no deduction. |
Why βup to 40%β is worse than it sounds
The percentage is taken from the full price of the unit, not from the money you have handed over.
A studio with AED 375,000 paid and AED 400,000 still to pay has a price of AED 775,000. At 60β80% built the developer may keep 40% of that β AED 310,000 β so only AED 65,000 of the 375,000 comes back. Had the owner paid less than 310,000, nothing would come back at all.
Questions people ask
What happens if I stop paying my off-plan instalments in Dubai?+
The developer notifies the Dubai Land Department, which gives you 30 days' notice to catch up. If you do not, the developer can terminate the sale and purchase agreement without going to court, and keep part of your money. How much it may keep depends on how far the project has been built β under Article 11 of Law No. (13) of 2008 as amended by Law No. (19) of 2020, up to 25% of the unit price below 60% complete and up to 40% at 60-80% complete.
Is the 40% taken from what I have paid, or from the full price?+
From the full price of the unit, not from what you have paid. That is the part most people get wrong and it is why the loss can be total: if you have paid 30% of the price on a unit that is 65% built, the developer's legal maximum is 40% of the whole price, which is more than everything you have handed over. You would get nothing back.
Can I sell my off-plan unit instead of defaulting?+
Usually yes, by assigning the contract to a new buyer, who pays you for the unit and takes over the instalments you have not paid yet. It needs a No Objection Certificate from the developer, and most developers refuse to issue one until you have paid a minimum share of the price β commonly 30-40%. No law sets that threshold; it is written into your own sale and purchase agreement.
How big a discount can I afford to give a buyer?+
As deep as the point where selling stops paying you more than defaulting would. The calculator works that figure out from your own numbers and shows it as a price. Below it you are better off letting the developer cancel; above it, selling puts more money in your pocket even after the agent's commission and the developer's NOC fee.
What if construction never started, or RERA cancelled the project?+
You are refunded in full, with no deduction, from the project's RERA-supervised escrow account. Law 19/2020 removed the older rule that let a developer keep up to 30% where construction had not commenced β explainers written before 2020 still quote it, so check the date on anything you read. If you are in either situation, take it to the Dubai Land Department rather than negotiating with the developer alone.
Who pays the developer's NOC fee and the agent's commission?+
On an off-plan assignment the NOC or transfer fee is the seller's cost, and it varies widely between developers. The agent's commission β typically 2% plus 5% VAT β is negotiable and is nil on a direct sale, so the calculator lets you set it to zero. The 4% DLD transfer fee is the incoming buyer's by convention, so it is not counted against your side.
How do I find out how far along my project really is?+
Ask the developer for the RERA-certified construction progress report, and cross-check it on Dubai Land Department open data. Do not rely on photographs or a sales agent's word β this single number decides which band you fall into, and the gap between 59% and 61% complete is the difference between a 25% and a 40% cap.
Is this legal advice?+
No. It is an estimate based only on the figures you enter, to help you see the two paths side by side. The percentages are the maximum the law allows a developer to retain, not a prediction of what yours will do. Read your own sale and purchase agreement and take advice before you act on it.