Missed off plan payment Dubai is the situation Law No. 19 of 2020 covers: the developer does not cancel on its own, it notifies the DLD, and the DLD gives you 30 days in writing to catch up or reach a settlement. If the deadline passes with no payment and no agreement, the DLD issues a document with the completion percentage set by RERA, and the developer may keep the contract, ask for an auction or terminate and retain up to 25% or 40% of the price, depending on how far construction has progressed. Anything above that cap must be refunded within one year or within 60 days of reselling the unit, whichever comes first. If work never started for reasons outside the developer’s control without negligence, or if RERA cancels the project, you get a full refund from the escrow account. We handle every step with you: we choose a plan you can cover and stay with you if an instalment gets tight.
In this guide10 sections
- What counts as a missed off-plan payment
- Step by step: what the DLD does if you do not pay
- How much they can keep by completion percentage
- If work never started or RERA cancels the project
- What you can do if you see you will miss an instalment
- How to avoid it: choose a plan you can cover
- Missed off-plan payment Dubai if you buy from the UK or the US
- How this fits with escrow, the SPA and delays
- Things to keep in mind
- Frequently asked questions
| Completion % (RERA) | What the developer can do | How much it can keep |
|---|---|---|
| Over 80% | Keep the contract and claim the balance; or DLD auction; or terminate | Up to 40% of the price |
| Between 60% and 80% | Terminate the contract | Up to 40% of the price |
| Work started and under 60% | Terminate the contract | Up to 25% of the price |
| Work not started without negligence, or RERA cancels | Refund everything paid | Nothing |
What counts as a missed off-plan payment
On an off-plan purchase you sign an SPA with a payment plan. Each instalment has its date or construction milestone. If one does not reach the project escrow account on time, the developer can start the Law No. 19 of 2020 procedure, which amended Article 11 of Law No. 13 of 2008.
A few days’ delay is not the same as an open default. Some developers agree a written deferral, with an addendum to the SPA, but that depends on each case and each contract: the law does not set a developer grace period. What it does set is the DLD’s 30-day notice once the developer has reported the breach.
The plan is chosen before you book. The off-plan calculator already has an AED 1,000,000 example on a 60/40 plan, and the usual types are in the guide to off-plan payment plans.
Step by step: what the DLD does if you do not pay
The procedure is the same wherever you live. The law is a matter of public order: the SPA cannot skip it.
- The developer notifies the DLD. It files a form with the parties, the unit and the unmet obligations.
- The DLD notifies you in writing. It gives you 30 days to pay or reach a settlement. Notice may come in person, by registered post, by email or by another means the DLD accepts. Where it can, the DLD brokers a settlement, usually signed as an addendum to the SPA.
- If the 30 days pass with no payment and no agreement, the DLD issues an official document to the developer with the completion percentage according to RERA.
- With that document, the developer can act without going to court, within the limits in the table above.
You can go to court at any time. The law does not take that away. The contract clauses are covered in the guide to the Dubai SPA.
How much they can keep by completion percentage
Retention is calculated on the contract price, not on what you have already paid. If you have paid more than the cap, the difference must be refunded. If you have paid less, in practice they keep what is in, up to that cap.
| Completion % (RERA) | What the developer can do | How much it can keep |
|---|---|---|
| Over 80% | Keep the contract and claim the balance; or ask the DLD to auction; or terminate | Up to 40% of the price |
| Between 60% and 80% | Terminate the contract | Up to 40% of the price |
| Work started and under 60% | Terminate the contract | Up to 25% of the price |
| Work not started for reasons outside without negligence, or RERA cancels | Refund everything paid | Nothing: Law No. 8 of 2007 on escrow applies |
Example on an AED 1,000,000 home. You have paid AED 300,000 and construction is at 40%. The cap is 25% of the price, AED 250,000. If they terminate, they can keep up to AED 250,000 and refund AED 50,000. If instead you have paid AED 500,000 with construction at 70%, the cap is 40%, AED 400,000: they would refund AED 100,000.
The excess is refunded within one year of termination or within 60 days of the unit being resold, whichever comes first. Above 80% complete, the developer also has two routes that do not terminate the contract: keep it and claim the balance, or ask the DLD to auction the unit. On an auction, the costs fall on the buyer.
If work never started or RERA cancels the project
There are two cases where the retention rule does not apply and you must be refunded in full:
- Work never started for reasons outside the developer’s control and without its negligence.
- RERA cancels the project.
In both, the money comes from the project escrow account, as Law No. 8 of 2007 requires. How that account works, when the bank releases money and what happens if a project is cancelled are in the guide to Dubai escrow law and the one on off-plan delays and cancelled projects.
A bare land sale without an off-plan project falls outside this procedure.
What you can do if you see you will miss an instalment
Before the developer notifies the DLD, there is usually room to talk. Typical steps:
- Tell the developer early, in writing, with a realistic date when you can pay.
- Ask for a deferral or an addendum to the SPA. Whether they agree depends on each case: the law does not force the developer to give you that extra room.
- See whether you can resell your position before the contract is terminated. That needs the developer’s NOC and its conditions. We cover it in the guide to selling off-plan before handover.
- If you already have the 30-day notice, use it in full: pay, sign a settlement or prepare your case if you go to court.
Do not simply stop paying in silence. A developer delay does not entitle you to stop paying on your own: they are different procedures. The purchase risks, one by one, are in the guide to off-plan property risks in Dubai.
How to avoid it: choose a plan you can cover
The best protection is a plan you can meet from savings even if the mortgage does not come through. On a 60/40 of AED 1,000,000, handover is AED 400,000 in one go, about €96,700 or $108,900. On a 20/80 you pay little during construction and need 80% at handover.
Before you book, run your numbers in the off-plan calculator, with the AED 1,000,000 example and the 60/40 plan already set, and check that each instalment and handover fit with a buffer. If you plan to finance handover, look into a Dubai mortgage for non-residents before signing, not in the handover month. The costliest mistakes when buying from abroad, including not having that payment ready, are in the guide to mistakes buying property in Dubai.
Missed off-plan payment Dubai if you buy from the UK or the US
The DLD procedure is the same wherever you live. What changes is the currency you pay from, how you send each instalment and the time difference with Dubai.
Buying from the UK
You pay in pounds for a home priced in dirhams, so each instalment moves with the pound-dollar rate. A slow transfer or an adverse move can leave you tight against the SPA date. Send early, in dirhams, to the escrow account, and keep every receipt. Dubai is 4 hours ahead of the UK in winter and 3 in summer.
Buying from the US
You pay in dollars, so there is no currency risk with the dirham. The weak point is usually time: an international transfer can take several business days. Send it with a buffer and with your unit reference. New York and Miami are 9 hours behind in winter and 8 in summer.
How this fits with escrow, the SPA and delays
Three guides sit alongside this one:
- Escrow law covers where your money goes and when it is released. Here we cover what happens if you do not send it.
- The SPA sets the payment plan and cannot skip the DLD procedure.
- Delays and cancellations cover developer default. Missed payment is the buyer’s.
Always paying into the project escrow account, with the number shown in Dubai REST, remains the rule. How to check it is in the guide to checking a Dubai off-plan project is safe.
Things to keep in mind
- If you cannot pay an instalment, the developer notifies the DLD and the DLD gives you 30 days in writing.
- After that deadline with no payment and no agreement, the maximum retention is 25% or 40% of the price, by completion %.
- Above 80% complete, the developer can also keep the contract or ask for an auction.
- Anything above the cap is refunded within one year or within 60 days of resale, whichever comes first.
- If work never started without negligence, or RERA cancels, you get a full refund from escrow.
- The law does not set a developer grace period: a deferral is an agreement, if there is one.
- You can always go to court.
If you are looking at an off-plan purchase, we handle every step with you: we review the plan with your numbers, show you how to check the escrow account and construction progress, and stay with you if an instalment gets tight.
Frequently asked questions
What happens on a missed off plan payment in Dubai?
The developer notifies the DLD, which gives you 30 days to pay or settle. If you do not, it can terminate and keep up to 25% or 40% of the price, depending on completion.
How many days do I get after a missed off plan payment?
The DLD gives you 30 days in writing once the developer reports the breach. That is the legal window.
How much can the developer keep if I do not pay?
Up to 40% of the price if construction is over 60%, and up to 25% if work has started and is under 60%. Anything above that must be refunded.
What if construction is over 80% and I do not pay?
The developer can keep the contract and claim the balance, ask the DLD to auction the unit, or terminate and keep up to 40% of the price.
Do I get a full refund if the project is cancelled?
Yes. If RERA cancels, or if work never started for reasons outside without negligence, you get everything back from the escrow account.
Can I negotiate a deferral with the developer?
You can ask, and sometimes an addendum to the SPA is signed. The law does not force the developer to agree: it depends on each case.
Can the SPA skip the DLD’s 30-day notice?
No. The Law No. 19 of 2020 procedure is a matter of public order and the contract cannot omit it.
What if I miss a payment buying from the UK?
The procedure is the same. What changes is the pound-dollar rate and transfer time: send dirhams to escrow with a buffer.
Can I go to court if the developer cancels?
Yes. The law does not stop the buyer going to court, even if the developer followed the DLD procedure.
How do I avoid missing an off-plan instalment?
Choose a plan you can cover from savings even if the mortgage does not come through, run the numbers in the calculator and look into the mortgage before you book.
