When is a project legally cancelled?
A project can sit idle for years, but it is only legally cancelled by a RERA decision — for example, where the developer never started construction, lost the rights to the plot or materially breached its obligations. A stalled but not cancelled project is a different situation, handled through mechanisms for unfinished projects and a developer dispute.
Our first step is to establish the official status of the project and its escrow account from DLD/RERA data.
Refund mechanisms
- Escrow account. Under Dubai Law No. 8 of 2007, off-plan buyers' payments go into the project escrow account. When RERA cancels a project, the developer must refund buyers, and the escrow funds are the source of repayment.
- Special judicial committee. Dubai has a special judicial committee (reconstituted in 2020, with powers extended to unfinished projects) that liquidates cancelled projects, examines buyers' claims and distributes funds.
- Court. If escrow funds are insufficient or payments bypassed escrow, claims can be brought against the developer and related parties, followed by enforcement against their assets.
We confirm the current rules and practice of these bodies when we take on the case.
What can get in the way
- payments made outside escrow (to the company account, a broker, in cash);
- no Oqood registration or proof of payment;
- missed deadlines for lodging claims in the liquidation process;
- insufficient escrow funds against many claims.
Each risk is handled differently, which is why we start with the documents.
Case: 100% refund in 5 months
A private investor from Moscow had paid into a Dubai off-plan project that the developer cancelled. We verified the project status and payments, prepared the claims and represented the client before RERA. Outcome: 100% of the funds refunded in 5 months. See the case study and our article on getting your money back when a developer cancels a project.
Outcomes depend on the documents, the escrow position and the developer — we never guarantee a result, but we give you an honest assessment at the diagnosis stage.
How we work
- Diagnosis (1–2 days). SPA, payments, Oqood, project and escrow status — assessment and quote.
- Contract and POA — remotely, 1–3 days.
- Claims. Preparing and filing claims with RERA / the special committee, dealing with the escrow agent bank and the developer.
- Court if needed — for amounts not covered by escrow.
- Payment and final report. Progress reports every week.
Documents
- SPA, reservation form, Oqood certificate;
- bank evidence of every payment;
- correspondence with the developer, cancellation or delay notices;
- passport and a power of attorney for the lawyer (legalised — see POA & legalisation).
Fees
A fixed part plus a 10–25% success fee on the amount refunded. Fees and translations are extra, per the estimate. A consultation is from AED 750 for 60 minutes and is credited if you sign a contract.
FAQ
When RERA cancels a project, Dubai law requires the developer to refund buyers, with the escrow account as the source. The outcome depends on how payments were made and the escrow balance.
Recovery is harder but possible through claims against the developer and related parties. Proof of payment is essential.
It depends on the procedure and project. In our case the RERA refund took 5 months.
Yes, under a legalised power of attorney, with weekly reports.