whatsapp
Source: Dubai News
Published on 12/18/2024

Dubai’s Off-Plan Property Rules Ensure Buyer Protection in Case of Project Cancellations

Full Refunds Guaranteed for Buyers in Cancelled Off-Plan Real Estate Projects in Dubai

In Dubai, off-plan properties offer investors lower prices and flexible payment plans but come with risks, including delays or cancellations. To protect buyers, Dubai has strict rules for managing unfinished or cancelled projects, ensuring transparency and accountability.

1-khaleej times off

If a project is cancelled, developers must refund buyers based on progress. If less than 60% of the project is complete, a maximum 25% deduction is allowed with the remaining refunded within a year or after reselling the unit. If no work is done, full refunds are required from a guarantee account managed by a financial institution ensuring buyer protection.

Buyers can file grievances with the Judicial Committee for Unfinished and Cancelled Real Estate Projects. The committee reviews cases and if refunds are ordered, they are processed by the developer or escrow trustee. Laws like Dubai Law No. 8 of 2007 and Law No. 13 of 2008 safeguard buyers' rights, offering a clear path for refunds in cancelled projects.