Understanding Your Rights to Cancel or Transfer Off-Plan Purchases in Dubai

Off-Plan Contract Flexibility

• Can I back out of an off-plan purchase contract legally?

  Yes, but it depends on the terms of the SPA (Sales Purchase Agreement) and how much of the purchase price has been paid. According to Dubai Law No. (13) of 2008, if a buyer defaults, the developer may retain a percentage of the paid amount based on construction progress. Reference: Dubai Land Department – Law 13 Summary

• What are the financial consequences of cancelling an off-plan property in Dubai?

  Depending on the stage of construction and the SPA terms:

  • You may forfeit up to 30%–40% of paid amounts
  • Additional admin or legal fees may apply
  • The rest may be refunded if the unit is resold or reallocated

• Can I transfer the off-plan contract instead of cancelling it?

  Yes, many developers allow contract reassignment or resale, subject to:

  • Paying a transfer or NOC fee
  • Reaching a certain payment threshold (e.g., 30%-40%)
  • Developer approval of the new buyer

• What are my rights if the developer fails to deliver as promised?

  If the developer significantly delays or breaches the SPA, you may: 

  • File a complaint with RERA/DLD 
  • Request contract termination and refund 
  • Initiate legal proceedings under real estate laws 

• Can I back out of the deal during the cooling-off period?

  Yes, Dubai developers sometimes offer a cooling-off period (e.g., 7 days) after signing the SPA, during which you can cancel the agreement without penalties—but this must be explicitly stated in the contract or developer policy.