Off-plan termination in Dubai, 25% or 40%: the Article 11 tiers for Australia investors

Off-plan termination at 25% or 40% in Dubai: what Australia investors should know

The two numbers are ceilings, reached only after a formal default process. Termination needs a 30-day DLD notice and then a DLD document certifying the project's completion.

Law No. 13 of 2008 is Dubai's Interim Real Property Register law. Its Article 11 has been rewritten three times, and the 2020 text is the one in force; pages quoting 2009 wording are out of date.

Branch 1: construction never started

No deduction is allowed. If work did not start for reasons beyond the developer's control and without its negligence, or RERA cancels the project by a final reasoned decision, the developer must refund all payments.

Al Tamimi (March 2021) notes the earlier text let developers keep up to 30% here.

Branch 2: the whole project is under 60% complete

The developer may terminate and keep up to 25% of the unit value, provided work has started on site under approved designs.

Example: a hypothetical AED 1,200,000 unit, AED 360,000 paid, whole project 40% built. The cap is AED 300,000 (25%), so at least AED 60,000 comes back, converted to AUD at whatever rate applies on the day.

Branch 3: the whole project is 60% to 80% complete

The cap rises to 40% of the unit value at the project's 60% mark, which is why the certified completion figure matters.

Check the figure yourself in Dubai REST, signing in through a UAE PASS Visitor account; the pre-instalment routine for Australian buyers shows how.

Branch 4: the whole project is over 80% complete

The developer picks one of three options under Article 11.

1. Keep the contract

   Retain all sums paid and claim the unpaid balance.

2. Ask the DLD to auction the unit

   Public auction recovers the balance; the buyer bears sale costs.

3. Terminate and retain up to 40%

   Of the unit value stated in the contract.

Refund timing for the excess

Money above the cap must be returned, but not immediately: within one year of termination or 60 days of resale to a new buyer, whichever is earlier. This applies to all terminations, not only above 80%.

DLD notice period

30 days

To pay or settle

Cap below 60%

25%

Of unit value

Cap from 60%

40%

Of unit value

Excess refund

1 year or 60 days

Whichever is earlier

Article 11(f) makes the rules public order, so acts ignoring them are null; 11(g) keeps buyers' access to courts and arbitration.

Article 11, Law 13 of 2008: what it means for buyers in Australia

The Dubai statute is the main limit on loss after default; no Australian scheme or regulator can vary a Dubai termination.

Count the 30 days in UAE time. The DLD can serve notice by email, and 18:00 in Dubai is already 01:00 next day in Sydney during daylight saving.

Missed a payment but no notice yet? See what happens after a missed instalment, or compare every exit route from Australia. The general explainer is off-plan termination at 25% or 40% in Dubai; the Australian buyers' hub has the rest. You can also see a project's registry facts.

Article 11 questions from Australia

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.