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What a developer can keep if a buyer defaults
If a buyer stops paying, the developer may keep up to 40% when over 60% is built, and 25% below that. If work never started, the buyer gets it all back.
What the source says
"Where the Developer has not commenced work on the Real Property project for any reason beyond his control, without negligence or omission on his part, or where the Real Property project is cancelled pursuant to a final reasoned decision of RERA, the Developer must refund all payments made by the purchasers"
Law No. (19) of 2020 amending Law No. (13) of 2008, Article 11
| Status | Confirmed - The official source states this rule in the words quoted. |
|---|---|
| Instrument | Law No. (19) of 2020 amending Law No. (13) of 2008, Article 11 |
| Authority | Dubai Government |
| In force since | 2020 |
| Last checked | 26 September 2026 |
| Source | Dubai Government |
What to know
The 2017 version let a developer who had not started work keep 30%. The 2020 amendment replaced it; many guides still quote 30%.
Read the full guide
This rule is explained in context, with the costs and steps around it, in Buying Off-Plan in Dubai (2026): Escrow, Oqood, Delays and Reselling.
More rules on off-plan
- Unregistered off-plan sales are void - Confirmed
- Off-plan contracts: 90 days to register - Confirmed
- One escrow account per off-plan project - Confirmed
- Escrow money is safe from developer creditors - Confirmed
- The 5% escrow retention - Confirmed
- If an off-plan project fails - Confirmed
See all 60 rules in the register.
Cite this rule
Home Guide Dubai, "What a developer can keep if a buyer defaults", Dubai property rules register, last checked 26 September 2026.
https://homeguidedubai.com/rules/offplan-default-retention/
This link stays the same when the rule changes. If the rule changes, this page shows the new text and the date it changed.
Frequently Asked Questions
Is this still the rule today?
We last read the source on 26 September 2026. Rules in Dubai change by circular and by edits to service pages, often without notice. Check the source linked above, and ask Dubai Government in writing before a large payment.
Where does this rule come from?
Law No. (19) of 2020 amending Law No. (13) of 2008, Article 11, published by Dubai Government. The quote on this page is copied word for word from that source.
Sources
- Law No. (19) of 2020 amending Law No. (13) of 2008, Article 11 - Dubai Government - accessed 26 September 2026
Every rule above is quoted from the law, decree or official page on the date given. This is general information, not legal advice; rules change, so confirm the current position with the authority named before you act.