After a missed instalment, the developer can notify Dubai Land Department (DLD). DLD gives you 30 days to remedy the breach. After that, the developer may take measures without going to court and may retain a substantial amount, depending on construction progress. Selling your position to another buyer before this happens will usually leave you with more than termination.
Continental Club, RERA ORN 31933, can quickly look for a buyer to take over your off-plan unit. We cannot promise a price or timing. A buyer will most likely pay less than you have already paid, but a resale can be faster than termination and may leave you with more funds.
What happens after a missed payment
- The developer notifies DLD. If you miss a payment required under your SPA, the developer submits a notice of breach to DLD in the prescribed form. DLD checks the breach (Dubai Law No. 13 of 2008, Art. 11, as amended by Law No. 19 of 2017).
- DLD serves a 30-day notice. The notice comes from DLD, not directly from the developer. It may be served in person at DLD, by registered mail with acknowledgement of receipt, by email, or by another method DLD considers appropriate. This applies even if you live outside the UAE (Art. 11).
- DLD may mediate. During the 30 days, DLD may try to help you and the developer reach a settlement. If both sides agree, the arrangement is recorded in an addendum to the SPA.
- DLD records the completion percentage. If the breach is not remedied and no settlement is reached, DLD issues the developer a document confirming that the procedure was followed and stating the unit’s construction completion percentage under RERA standards.
- The developer may then act without court proceedings. The available measure depends on that completion percentage. Your own right to go to court or arbitration remains (Art. 11).
There is no fixed legal period in Art. 11 between the missed instalment and service of the DLD notice. The fixed period is the 30 days from service of that notice. Check your email and the contact details recorded in your SPA.
How much the developer can keep
The following outcomes are set out in Art. 11. The calculation base matters: 40% and 25% are percentages of the unit’s contract value. The 30% below is a percentage of amounts you have paid.
- More than 80% complete: the developer has three options. It may keep the contract, retain all amounts paid and claim the balance of the price from you. It may ask DLD to auction the unit to obtain the remaining amount, with sale costs charged to you. Or it may terminate the contract unilaterally, retain up to 40% of the unit’s contract value, and return any excess within one year from termination or 60 days from resale of the unit, whichever comes first (Art. 11).
- From 60% to 80% complete: the developer may terminate the contract, retain up to 40% of the unit’s contract value, and return any excess within one year from termination or 60 days from resale of the unit, whichever comes first (Art. 11).
- Construction has started and is less than 60% complete: the developer may terminate the contract, retain up to 25% of the unit’s contract value, and return any excess within one year from termination or 60 days from resale of the unit, whichever comes first (Art. 11).
- Construction has not started for reasons beyond the developer’s control: the developer may terminate the contract and retain up to 30% of the amounts you have paid. Any excess must be returned within 60 days from termination (Art. 11).
At a late construction stage, the possible consequences can be particularly severe. If you may need to sell, acting before the 30-day period ends can give a buyer more time to complete the transfer.
Illustration: termination versus selling your position
This is an illustration only, with stated assumptions. It is not a price estimate or an outcome we can promise. Assume a unit contract price of AED 1,500,000. You have paid AED 450,000, construction is 50% complete, and construction has started.
On those assumptions, termination falls into the less-than-60%-complete category. The developer may retain up to AED 375,000, which is 25% of the AED 1,500,000 contract value. That would leave AED 75,000 to be returned, within one year from termination or 60 days from resale of the unit, whichever comes first.
For comparison, assume a replacement buyer agrees to pay you AED 360,000 for your position before transaction costs. The buyer would take over the remaining SPA instalments. That price is only an assumption. A buyer may offer less, or no buyer may be ready in time. Still, this shows why a resale can be worth exploring before termination.
How an off-plan resale before handover works
An off-plan resale is often called an assignment. The exact process depends on the developer and the unit status. Developers often require you to have paid a minimum share of the price before they allow a resale.
- You request a no-objection certificate, or NOC, from the developer. The developer will normally review the unit’s payment position.
- Ask for a current statement of account from the developer. It should show payments received, amounts due and any overdue instalments.
- The parties commonly sign RERA Form F for the resale.
- The transaction is processed through an accredited trustee office.
- The Oqood, which records the SPA in the Interim Real Property Register, is transferred to the buyer.
- The buyer normally takes over the remaining instalments under the SPA and continues paying the developer directly.
A buyer should check the registration details. DLD provides an official Title Deed Verification service for checking a certificate or contract number and year. A current developer statement is also important, as it shows the payment position.
Other options to consider
- Speak to the developer early. You can ask if a revised payment arrangement is possible. A developer may decline, and you cannot require a new schedule unilaterally.
- Use DLD mediation during the 30 days. If DLD can help both sides agree, the agreed terms need to be recorded in an SPA addendum. Mediation may not result in an agreement.
- Ask about a restructured schedule. You may ask to spread payments differently or move part of the burden later. This depends on the developer’s decision and your circumstances.
What we do and what we do not do
- We market your off-plan position and look for a buyer who may take it over before handover.
- We can help you assess the documents a buyer is likely to request and explain the resale process in practical terms.
- We do not buy units ourselves.
- We do not negotiate with developers on your behalf.
- We do not provide legal advice. For legal questions about your SPA, notice, termination or dispute, speak with a UAE-licensed lawyer.
- We cannot promise a buyer, sale price or completion date. Read more about selling property in Dubai with us.
What to prepare for a free review
Keep these at hand: your SPA, payment receipts or the developer’s current statement of account, any DLD notice you have received, your Oqood or registration number, and the construction progress if known. Leave your contact below and we will call back.
Read how much a Dubai developer can keep if your off-plan SPA is terminated and selling a property after missed payments to the developer.
If a bank, a court or unpaid service charges have put a restriction on your unit, see when a blocked or attached property can be sold.
Frequently asked questions
Can the developer cancel my off-plan SPA without going to court?
After the DLD procedure is completed and the 30-day notice period has passed without a remedy or settlement, the developer may take the measures set out in Art. 11 without going to court or arbitration. You retain your own right to go to court or arbitration.
How long do I have after the DLD notice?
You have 30 days from service of the DLD notice to remedy the breach. Art. 11 does not set a fixed period between a missed payment and service of that notice.
How much can I lose if my SPA is terminated?
It depends on construction progress. Above 80% completion the developer may keep the contract, retain everything you have paid and claim the balance, or ask DLD to auction the unit at your cost; if it terminates instead, it may retain up to 40% of the unit's contract value. At 60–80% it may retain up to 40% of contract value, below 60% (construction started) up to 25% of contract value, and if construction has not started for reasons beyond its control, up to 30% of the amounts you paid (Art. 11).
Can I sell my off-plan unit if I am already behind on payments?
It may still be possible, subject to the developer’s resale requirements and the buyer’s willingness to proceed. A current statement of account is important because it shows the payment position and any overdue instalments.
Do I receive payments above the retention amount, and when?
For the contract-value retention categories, any excess is returned within one year from termination or 60 days from resale of the unit, whichever comes first. Where construction has not started for reasons beyond the developer’s control, excess amounts are returned within 60 days from termination.
Do you promise a price or timing?
No. We look for a buyer quickly, but we cannot promise a price or timing. A buyer will often ask for a discount on the amount you have already paid.
Sources
- Explanatory Notes on Article (11) of Law No. (19) of 2017
- Executive Council Resolution No. (6) of 2010 Approving the Implementing Bylaw of Law No. (13) of 2008
- Dubai Land Department Title Deed Verification
Checked in September 2026. This page is general information, not legal advice.