Law No. 13 of 2008chapter by chapter

Article 3General Provisions

Any off-plan Real Property Unit disposition must be registered on the Interim Real Property Register; a sale or other legal disposition transferring/restricting ownership or associated rights is null and void unless so registered.

Article 4General Provisions

A Master Developer or Sub-developer may not commence project implementation or sell Units off-plan unless it has taken possession of the project land and obtained the necessary Competent Entity approvals; the DLD annotates the registry folio to denote the land is under development.

Article 7General Provisions

A Master Developer or Sub-developer may not charge any fees for the sale, resale, or other legal disposition of Real Property Units, except for DLD-approved administrative expenses charged to third parties.

Article 8General Provisions

A Developer must register a completed project (and its sold Units in purchasers' names, where purchasers have fulfilled their contractual obligations) in the Real Property Register upon receiving the completion certificate.

Article 9General Provisions

Where a Developer markets a project through a Broker, it must conclude an agreement with a Bylaw 85/2006-approved Broker and register that agreement with the DLD.

Article 10General Provisions

No Developer or Broker may conclude an off-plan sale contract for a project not approved by the Competent Entities; any contract concluded before such approval is null and void.

Article 12General Provisions

A sold Unit's area is deemed correct; excess area discovered after handover is not compensable to the Developer, but the Developer must compensate the purchaser for a (non-insignificant) area shortage.

Article 11(a)(1)-(2)Purchaser Default and Termination

Where a purchaser breaches Off-plan Sale obligations, the Developer must notify the DLD (on the prescribed form with full details); the DLD serves a 30-day notice on the purchaser and attempts amicable mediation, with any settlement executed as an addendum to the sale agreement.

Article 11(a)(3)-(4)Purchaser Default and Termination

Once the 30-day notice expires without cure or settlement, the DLD issues an official document confirming Developer compliance and the Unit's completion percentage, which the Developer then uses to determine its remedy: at over 80% completion, it may maintain the agreement and claim the balance (or auction the Unit, or terminate retaining up to 40%); at 60-80% completion, terminate retaining up to 40%; below 60% (with work commenced), terminate retaining up to 25%; if work has not commenced for

Article 11(b), (d)-(f)Purchaser Default and Termination

Where RERA cancels the project, the Developer must refund all purchaser payments per Law 8/2007 procedures; these rules are public order (non-compliance voids the legal act) and do not preclude a purchaser's recourse to courts/arbitration for Developer abuse of these powers.

Article 2-3Registration Timing and Late Fee

A Developer's registration application submitted within the Article 3(2) deadline is deemed timely even if the DLD has not completed processing; late applications are still registered but trigger a AED 10,000 fine on the Developer.

Article 4-2Pre-conditions to Commence a Project

A Master Developer or Sub-developer may not commence project implementation or sell Units off-plan unless it has taken possession of the land, received the demarcation certificate, has actual control of the land, and has obtained the required Competent Entity approvals.

Article 7-2Unit Handover and Registration

Upon obtaining the completion certificate, the Developer may not refuse to hand over or register a Unit in the purchaser's name where the purchaser has fulfilled all sale-agreement obligations, even if other unrelated financial dues are owed; the Developer must register the Unit and its allocated facilities (e.g. car parks) in the purchaser's name.

Article 10-2Marketing Through a Broker

Where a Developer markets a project through a Broker, the project must be registered with the DLD, the Broker must be Bylaw 85/2006-approved, and the marketing agreement must be registered with the DLD.

Article 12-2Broker Escrow Deposit Requirement

Where a Broker markets a project, the Broker must deposit the Unit sale price directly into the project's Escrow Account, and may not deposit it into its own account or deduct commission before the Escrow deposit; any contrary agreement is null and void.

Article 13Area Measurement and Compensation

The net area of a Real Property Unit is used for registration; excess area is not chargeable to the purchaser, and the Developer must compensate the purchaser if the actual area is more than 5% short of the net area (compensation calculated per the agreed Unit price).

Article 14Dispute Conciliation

The DLD may undertake conciliatory efforts between a Developer and purchaser; any amicable settlement reached must be documented in a written, executed agreement, becoming binding once DLD-approved.

Article 17Completion Percentage Verification

The completion percentage used for the tiered purchaser-default remedy must be confirmed by a RERA-approved consultant's technical report based on on-site inspection; completion of levelling works and infrastructure is deemed 'commencement' of implementation.

Article 18Refund Timing

A Developer must refund amounts retained from a defaulting purchaser no later than 1 year from termination or 60 days from resale of the Unit, whichever occurs earlier.

Article 24-27Project Cancellation by RERA

A Developer may grieve a RERA project cancellation decision in writing within 7 working days (RERA decides within 7 working days); where RERA proceeds with cancellation, it prepares a technical report, notifies the Developer, appoints a certified auditor at the Developer's expense, and requires refund of Escrow/other payments within 14 days (or 60 days if Escrow funds are insufficient, extendable by RERA).