By Jouslin Khairallah, Founder & Managing Director, Head of Litigation, and Dr. Mahmoud Fahmy, Partner & Senior Lawyer.
My off-plan property is late — can I get my money back?
Sometimes, but not automatically. It depends on your sale and purchase agreement, the length and cause of the delay, and the project’s status with RERA. A late handover alone does not guarantee a refund.
Doesn’t a late handover automatically mean a breach?
Not necessarily. Off-plan contracts commonly allow the developer a grace period, typically 6–12 months, as set out in the sale and purchase agreement and subject to RERA’s project-specific approvals. This is a contract term, not a statutory right, and a delay within that period will not ordinarily amount to a breach.
Is my money safe while I wait?
By design, yes. Off-plan payments must be deposited into a regulated project escrow account under Dubai Law No. 8 of 2007 (RERA/DLD) and Abu Dhabi Law No. 3 of 2015 as amended (DMT/ADREC). These regimes restrict developer withdrawals and are designed to protect purchaser funds. Escrow is a safeguard rather than a guarantee, so the position on any refund will depend on your agreement and the status of the project.
What if the project is cancelled?
If RERA cancels a Dubai project, the Special Tribunal for the Liquidation of Cancelled Real Estate Projects (Dubai Decree No. 33 of 2020) liquidates the project and settles refunds from escrow. Its decisions are final and enforceable.
Can I claim compensation for the delay?
Possibly — but a delay is not an automatic payout. Compensation depends on the terms of the sale and purchase agreement and on proven loss. Under UAE law, courts may adjust a contractual penalty so as to reflect the actual harm suffered.
Property late but payments current? Our Real Estate & Dispute Resolution team will review your SPA and map your options. Contact us: info@khlegal.ae · +971 4 427 0845 · WhatsApp +971 55 561 4957.
Laws referenced: Dubai Law No. 13 of 2008 (as amended); Dubai Law No. 8 of 2007 (escrow); Dubai Decree No. 33 of 2020 (Special Tribunal); Abu Dhabi Law No. 3 of 2015 as amended by Law No. 2 of 2025.
Related reading
- Dealing with Delayed Property Handover in the UAE
- Developer Liability Strengthened in Dubai Real Estate
- Buying Property in Dubai: When You Need a Lawyer