Real Estate Disputes in Dubai: Legal Options for Buyers, Developers & Investors

The Statutory and Regulatory Architecture of Real Estate in Dubai

The real estate market in the Emirate of Dubai is governed by an integrated statutory framework designed to maintain market equilibrium between developer liquidity and purchaser protection. The main pillar of this framework is Law No.7 of 2006 Concerning Real Estate Registration in the Emirate of Dubai. The law requires all dispositions and acquisitions of rights in real property to be registered in the official register maintained by the Dubai Land Department (DLD) so as to have legal effect. This principle is supported by Law No. 8 of 2007 Concerning Escrow Accounts for Real Estate Development in the Emirate of Dubai when considering off-plan developments, which states that payments made by off-plan purchasers and project financiers are to be deposited into a project-specific escrow account that is dedicated solely to the relevant development and administered in accordance with DLD and RERA requirements.

Law No. 13 of 2008 concerning the Interim Register of Real Estate in the Emirate of Dubai as amended by Law No. 9 of 2009, Law No. 19 of 2017 and Law No. 19 of 2020. All off-plan property dispositions shall be registered in the Interim Real Estate Register under Article 3 of Law No. 13 of 2008. All dispositions outside this register shall be null and void. In addition, Article 4 prohibits a developer from launching an off-plan project or selling units before obtaining possession of the development land and obtaining the approvals from the relevant authorities. In essence, this legislative framework offers a basic and supportive guide for property litigation and investor disputes and sets down clear legal benchmarks for the resolution of real estate disputes.

Developer Remedies and Statutory Default Procedures Under Article 11

The procedures referred to in Article 11 shall be mandatory rules of public order. A developer cannot avoid this by resorting to contractual provisions for forfeiture or by trying to terminate an off-plan sale agreement outside the prescribed procedure. Non-compliance with these requirements shall be expressly declared invalid pursuant to Article 11.

The developer is not entitled to terminate the SPA forthwith where the purchaser fails to comply with contractual instalments or other obligations under an off-plan sale agreement. The developer must notify the Dubai Land Department (DLD) of the purchaser’s breach, using the form prescribed for the purpose. The notification shall contain the details of the developer and purchaser, the particulars of the relevant real estate unit, a clear description of the breach of contractual obligation and any other information required by the DLD.

The DLD shall upon receipt of the notification and confirmation of the breach by the purchaser, issue a written and dated notice to the purchaser demanding the purchaser to fulfilll the outstanding contractual obligations within 30 days from the date of notice. The notice may be served personally, by registered mail with acknowledgment of receipt, by email or in any other manner determined by the DLD.

During this period, the DLD may also attempt to facilitate an amicable settlement between the developer and purchaser. If a settlement is reached, it must be recorded in an annex to the SPA and signed by both parties.

If the 30-day period expires without the purchaser curing the breach or the parties reaching an amicable settlement, the DLD will issue an official document confirming that the developer has complied with the required procedures and stating the percentage of completion of the real estate project in accordance with the standards and rules adopted by RERA.

Once the developer receives this official document, it may take the measures permitted under Article 11 without first obtaining a judgment or arbitral award. The remedies available depend on the percentage of project completion.

Where the project is more than 80% complete, the developer may maintain the SPA, retain the amounts already paid and require the purchaser to pay the outstanding contractual balance. Alternatively, the developer may request the DLD to sell the unit by public auction to recover the unpaid amounts, with the purchaser bearing the expenses of the sale. The developer may also rescind the SPA and deduct up to 40% of the value of the real estate unit stated in the contract. Any excess amount must be refunded to the purchaser within one year from the date of rescission or within 60 days from the resale of the unit to another purchaser, whichever occurs first.

Where project completion is between 60% and 80%, the developer may rescind the SPA and deduct no more than 40% of the value of the unit stated in the contract. The remaining amount must be refunded within one year from the date of rescission or within 60 days from the resale of the unit, whichever occurs first.

Where the developer has received the construction site, commenced construction works in accordance with designs approved by the competent authorities, and completed less than 60% of the project, the developer may rescind the SPA and deduct up to 25% of the value of the unit stated in the contract. The excess must again be refunded within one year from rescission or within 60 days from the subsequent resale of the unit, whichever occurs first.

Where construction has not commenced for reasons beyond the developer’s control and without negligence or dereliction on its part, the developer is not entitled to retain a percentage of the purchaser’s payments under Article 11. Instead, all amounts received from purchasers must be returned in accordance with the procedures and provisions of Law No. 8 of 2007. The same applies where the project has been cancelled by a final reasoned decision issued by RERA.

Although Article 11 allows the developer to take these measures without first referring the matter to the courts or arbitration, the purchaser retains the right to challenge the matter before the judiciary or through arbitration. Because Article 11 expressly treats these procedures as rules of public order and provides that non-compliance results in invalidity, strict adherence to each procedural requirement is essential when terminating an off-plan sale agreement.

Buyer and Investor Rights, Defences, and Contractual Rescission

The statutory framework offers developers structured enforcement mechanisms, but also has parallel protections for purchasers and institutional investors. Under Article 11(g) of Law No. 13 of 2008, as amended by Law No. 19 of 2020, the statutory remedies available to a developer do not prevent the purchaser from resorting to the courts or to arbitration. Therefore, the developer is entitled to the remedies under Article 11 without the necessity of a judicial or arbitral award. However, the purchaser may challenge the developer’s conduct before the competent judicial or arbitral authority.

In such a case, a purchaser facing non-performance by a developer can rely on the UAE Civil Transactions Law, Federal Decree-Law No. 25 of 2025, which came into force on 1 June 2026. According to Article 234, a party may ask for specific performance or cancellation by the court if the other party fails to perform its obligations under the contract. Following rescission, the parties are to be restored to their original position before the contract as per Article 237 and appropriate compensation is permitted under Article 339.

The defence of non-performance is preserved under Article 222, allowing a party to withhold its corresponding obligation where the other party fails to perform a reciprocal obligation that has become due. In addition, Article 12 of Dubai Law No. 13 of 2008 protects purchasers against additional charges arising from increases in unit area and provides compensation for material shortfalls in the delivered area.

Distressed and Cancelled Projects Under Decree No. 33 of 2020

Failed, stalled, and cancelled real estate projects in Dubai are governed by Decree No. 33 of 2020, which superseded Decree No. 21 of 2013 and expanded the jurisdiction of the Special Tribunal to cover unfinished and cancelled real estate projects. This specialised judicial committee exercises jurisdiction over projects proven to be unfinished, where construction has commenced but later been suspended, as well as projects formally cancelled under the applicable legislation.

Decree No. 33 of 2020 extends the Special Tribunal’s jurisdiction to unfinished projects where construction has commenced but subsequently been suspended, as well as projects formally cancelled by RERA. Under Articles 4 and 6, the Tribunal determines claims, applications, liquidation matters and investor rights relating to unfinished or cancelled projects. Article 10 prevents Dubai courts and other judicial entities, including the DIFC Courts, from hearing matters falling within the Tribunal’s jurisdiction and requires pending matters to be transferred to it. Projects located within the geographical boundaries of the DIFC are excluded from the Decree.

Under Articles 6 and 7 of Decree No. 33 of 2020, the Judicial Committee has broad powers to manage unfinished and cancelled real estate projects. It may appoint auditors and real estate experts, issue interim and liquidation-related orders, direct the return of funds held in escrow, assign unfinished projects to another developer, and liquidate cancelled projects while determining the rights of investors and other parties. Its decisions are final and not subject to ordinary appeal procedures under Article 11.

Decree No. 33 of 2020 also regulates arbitration related to incomplete or canceled real estate projects. Under Article 8, the Judicial Committee has jurisdiction to deal with applications arising out of disputes within its jurisdiction for the annulment and ratification of arbitral awards including relevant proceedings before the DIFC Courts concerning projects outside the DIFC. The Committee and its Chairman shall exercise the powers vested in the Court of Appeal and its President under Federal Law No. 6 of 2018 on Arbitration.

Jurisdictional Dynamics, Arbitrability, and Dispute Resolution Strategy

Real estate disputes in Dubai may be referred to various forums depending on the nature of the dispute including: (i) the Dubai Courts; (ii) the Rental Disputes Center (RDC); (iii) the Special Judicial Committee constituted under Decree No. 33 of 2020; and (iv) arbitral institutions such as the Dubai International Arbitration Center (DIAC).

SPAs may contain valid arbitration clauses for contractual disputes like payment, performance and damages. However, matters relating to the creation, transfer, amendment or extinguishment of registered real property rights are subject to Dubai’s mandatory registration regime. The DLD has sole authority to register rights under Articles 6 and 9 of Law No. 7 of 2006, and dispositions affecting such rights are not effective until registered. An arbitral award relating to title or other registered rights can therefore only be implemented by the appropriate registration and enforcement mechanisms and cannot in itself change the DLD register.

Conclusion

Dubai’s real estate dispute framework combines statutory purchaser protections, developer remedies and specialised jurisdictional rules. Off-plan disputes may engage the procedures under Article 11 of Law No. 13 of 2008, contractual remedies under the UAE Civil Transactions Law, and, in cases involving unfinished or cancelled projects, the exclusive powers of the Special Judicial Committee under Decree No. 33 of 2020.

Because jurisdiction may lie with the Dubai Courts, the RDC, the Special Judicial Committee or arbitration depending on the nature of the dispute, identifying the correct forum and remedy at an early stage is essential. Careful review of the SPA, project status, registration records, payment history and applicable statutory procedures can significantly affect the outcome of a real estate claim in Dubai.