Law No. (19) of 2017
Amending Law No. (13) of 2008
Regulating the Interim Real Property Register in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai;
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency; and
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai
and its amendments,
Do hereby issue this Law.

Superseded Article

Article (1)

Article (11) of the above-mentioned Law No. (13) of 2008 is hereby superseded by the
following:

Article (11)
a. Where a purchaser fails to fulfil his contractual obligations under an Off-plan Sale
agreement concluded with a Developer, the following rules and procedures shall apply:
1. The Developer must notify the DLD of the purchaser’s non-performance of
his contractual obligations. This notification must be submitted on the form
prescribed by the DLD for this purpose and must include all details of the Developer
and purchaser; a description of the Real Property Unit subject of the Off-plan Sale
agreement; a detailed account of the contractual obligations breached by the
purchaser; and any other details determined by the DLD.
2. Promptly upon receipt of the notification and verifying that the purchaser is in
breach of his contractual obligations, the DLD must:
a. serve a thirty (30) days’ notice on the purchaser requiring him to fulfil his
contractual obligations towards the Developer. The notice must be in writing
and dated; and must be delivered to the purchaser either in person or by
registered mail with acknowledgement of receipt, email, or any other means
prescribed by the DLD; and
b. where possible, mediate an amicable settlement between the Developer and
purchaser, in which case such settlement must be attached as an addendum to
the Off-plan Sale agreement and must be executed by the Developer and the
purchaser.
3. If the notice period mentioned in sub-paragraph (a)(2)(A) of this Article expires and
the purchaser fails to fulfil his contractual obligations or to reach a settlement with
the Developer, the DLD shall issue an official document in favour of the Developer
confirming the following:
a. the Developer’s compliance with the procedures stipulated in paragraph (a) of
this Article; and
b. the percentage of completion of the Real Property Unit subject of the Off-plan
Sale agreement, calculated in accordance with the relevant standards and rules
adopted by RERA.
4. Upon receiving the official document referred to in sub-paragraph (a)(3) of this
Article and based on the percentage of completion, the Developer may take any
of the following measures against the purchaser without recourse to courts or
arbitration:
a. Where the percentage of completion of the Real Property Unit exceeds eighty
percent (80%), the Developer may:
1. maintain the Off-plan Sale agreement concluded with the purchaser, retain
all amounts paid by the purchaser, and claim the balance of the price of the
Real Property Unit from the purchaser;
2. request the DLD to sell the Real Property Unit, subject of the Off-plan Sale
agreement, by public auction to collect the remaining amounts payable to
the Developer; and hold the purchaser liable for the costs arising from the
sale; or
3. unilaterally terminate the Off-plan Sale agreement, retain up to forty percent
(40%) of the value of the Real Property Unit stipulated in the Off-plan Sale
agreement, and refund any amounts in excess of this to the purchaser
within one (1) year from the termination of the agreement or within sixty
(60) days from the date of resale of the unit to another purchaser, whichever
occurs earlier.
b. Where the percentage of completion of the Real Property Unit is between
sixty percent (60%) and eighty percent (80%), the Developer may unilaterally
terminate the agreement, retain up to forty percent (40') of the value of
the Real Property Unit stipulated in the Off-plan Sale agreement, and refund
any amounts in excess of this to the purchaser within one (1) year from the
termination of the agreement or within sixty (60) days from the date of resale
of the unit to another purchaser, whichever occurs earlier.
c. Where the Developer has commenced work on the Real Property project, having
taken hold of the construction site and started construction works in accordance
with the designs approved by the Competent Entities, and the percentage
of completion of the Real Property Unit is less than sixty percent (60%), the
Developer may unilaterally terminate the Off-plan Sale agreement, retain up
to twenty-five percent (25%) of the value of the Real Property Unit stipulated
in the Off-plan Sale agreement, and refund any amounts in excess of this to
the purchaser within one (1) year from the termination of the agreement or
within sixty (60) days from the date of resale of the unit to another purchaser,
whichever occurs earlier.
d. 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, he
may terminate the Off-plan Sale agreement, retain up to thirty percent (30') of
the amounts paid to him by the purchaser, and refund any amounts in excess
of this to the purchaser within sixty (60) days from the termination of the
agreement.
b. Where the Real Property project is cancelled pursuant to a reasoned decision
of RERA, the Developer must refund all payments made by the purchasers in
accordance with the procedures and rules stipulated in the above-mentioned Law
No. (8) of 2007.
c. The rules and procedures stipulated in this Article do not apply to land sale
agreements which do not involve any Off-plan Sale. Land sale shall continue to
be governed by the terms of the land sale agreements concluded by the parties
thereto.
d. The rules and procedures stipulated in this Article shall apply to all Off-plan Sale
agreements concluded prior to or after the commencement of this Law.
e. The rules and procedures stipulated in this Article are considered part of public
order, and failure to comply therewith shall result in nullity of the legal act in
question.
f. The rules and procedures stipulated in this Article shall not preclude the purchaser
from having recourse to courts or arbitration where the Developer abuses any of
his powers under this Article.

Repeals

Article (2)
Any provision in any other legislation shall be repealed to the extent that it contradicts
the provisions of this Law.

Commencement and Publication

Article (3)
This Law comes into force on the day on which it is issued, and shall be published in the
Official Gazette.

Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 October 2017
Corresponding to 28 Muharram 1439 A.H