Executive Council Resolution No. 6 of 2010 · Dubai
Implementing bylaw of the interim register law: off-plan sales made before project approval and Land Department registration are void, and a developer may terminate a defaulting purchaser's contract after 30 days' notice and retain a percentage of payments depending on project completion; in force on issue.
Executive Council Resolution No. (6) of 2010 is the implementing bylaw of Dubai Law No. (13) of 2008 on the Interim Real Property Register. It was issued on 14 February 2010 and, under Article 28, took effect on issue. It sets the practical rules for off-plan projects: when a developer may start selling, what happens to late or unregistered sales, how a defaulting purchaser's contract is terminated and how much the developer may keep, and what RERA does when it cancels a project.
Articles 2 and 3 deal with registration: a disposition filed within the Law's time limit is treated as compliant even if processing is incomplete, while a late filing is still registered but costs the developer a fine of AED 10,000. Articles 4, 5 and 17 forbid starting a project or selling off-plan until the developer holds the land, the demarcation certificate, actual control of the site and the required approvals. Article 11 declares off-plan dispositions made before project approval and Land Department registration null and void. Article 12 requires sales through a licensed broker under a registered marketing agreement, with proceeds paid into the project escrow account before any commission is taken.
Articles 7 to 9 protect a paid-up purchaser: once the completion certificate issues the developer cannot withhold handover or registration, may charge only Land Department-approved amounts, and registration fees are shared as agreed. Article 13 requires compensation where the delivered area is more than 5% below the contracted net area.
Article 15 is the termination machinery. The developer serves a written notice with a copy to the Land Department, which gives the purchaser a 30-day grace period. If the purchaser still fails, the developer's options depend on completion: at 80% or more it may keep all sums paid and seek an auction, or terminate and retain up to 40% of the unit price; at 60% or more it may terminate and retain up to 40%; below 60%, up to 25%; and where construction has not started for reasons beyond its control, up to 30% of the amounts paid. Article 16 denies the 30% retention to a developer that cannot show the delay was not its fault. Article 18 requires any balance to be refunded within one year of termination or 60 days of resale, whichever comes first. Articles 21 and 22 list reasons beyond the developer's control and acts of negligence.
Articles 23 to 27 let RERA cancel a project on a reasoned technical report, allow the developer a grievance within seven working days, and require escrow funds and direct payments to be refunded within 14 days, with any shortfall paid within 60 days. Law No. (19) of 2017 later replaced Article 11 of the Law with a termination procedure of the same structure and percentages and repeals contradicting provisions, so the Law is now the primary source for the termination steps.
Master developers and sub-developers selling real property off-plan in Dubai, purchasers of off-plan units, licensed real estate brokers marketing those units, and the Land Department and RERA, which register dispositions, serve default notices, supervise escrow refunds and may cancel projects.
English official text in 28 articles. Open the full text or jump to a provision:
| Article 3 | A disposition filed after the Law's time limit is still registered in the Interim Real Property Register, but the Land Department imposes a fine of AED 10,000 on the developer. |
| Articles 4–5 | A developer may not start a project or sell off-plan until it has taken possession of the land, obtained the demarcation certificate, has actual control of the site and holds the required approvals; the Department marks the land's folio to show a regulated development project. |
| Articles 7–9 | After the completion certificate issues the developer cannot withhold handover or registration from a purchaser who has met its contractual obligations, may charge only amounts approved by the Land Department, and registration fees are shared as agreed. |
| Article 11 | Any off-plan disposition made before the project is approved for commencement and registered with the Land Department is null and void. |
| Article 12 | Off-plan units must be marketed through a licensed broker under a registered marketing agreement, and sale proceeds go into the project escrow account before any commission is paid; contrary agreements are void. |
| Article 13 | Compensation is due where the actual area of the unit is more than 5% less than the net area agreed, calculated on the contract price; excess area is not chargeable unless agreed. |
| Article 15 | On purchaser default the developer serves notice with a copy to the Land Department, which gives the purchaser 30 days; thereafter the developer may terminate and retain up to 40% of the unit price where the project is 60% or more complete, up to 25% below 60%, and up to 30% of sums paid where construction never started for reasons beyond its control. |
| Article 16 | A developer that has not started the project may keep the 30% only if it proves it performed its obligations and the delay was not due to its negligence or omission or was beyond its control. |
| Article 18 | Amounts retained in excess of the permitted percentage must be refunded within one year of termination or within 60 days of resale of the unit, whichever is earlier. |
| Article 19 | The Land Department may auction the unit, hold the proceeds in trust and pay the purchaser the balance after the developer's dues; if there is no auction the developer may use or lease the unit but must still refund within the Article 18 period. |
| Article 20 | A purchaser may ask the court to terminate where the developer withholds the final agreement without valid reason, refuses milestone-linked payments proposed by RERA, materially departs from agreed specifications or delivers a unit unfit for use because of material defects. |
| Articles 23–27 | RERA may cancel a project on a reasoned technical report; the developer may grieve within seven working days; after cancellation an auditor is appointed at the developer's expense, escrow and direct payments are refunded within 14 days and any shortfall is paid within 60 days. |
Article 3 fixes a fine of AED 10,000 on a developer that registers a disposition late. The harsher consequences are civil: off-plan dispositions made before approval and registration are void (Article 11), marketing arrangements that bypass a licensed broker or the escrow account are void (Article 12), and a developer that terminates without following the notice and grace-period procedure, or keeps more than the percentage permitted for the project's completion stage, must refund the excess within the Article 18 period. RERA may cancel a project for failure to start works without justification, lack of genuine intent, gross negligence or bankruptcy (Article 23) and may refer a developer that fails to refund to the judicial authorities (Article 27).
We act for buyers rather than developers, and this bylaw is the text we put in front of a developer who has stopped responding or is threatening to cancel. When a client has missed an instalment we check whether the Article 15 notice was served with a copy to the Land Department and whether the 30 days have run; a termination that skipped the procedure is attackable, and Law No. (19) of 2017 now makes the procedure a matter of public order. When the developer is the one in delay, Articles 20 to 22 give us the grounds for court termination and the list of excuses the developer cannot rely on, and Article 13 supports claims where the handed-over unit is smaller than contracted. In Oqood disputes we also rely on Article 11: a sale the developer never registered is void, which shifts the negotiating position on refunds. We coordinate the Land Department conciliation route under Article 14 before any filing at the Rental Dispute Centre or the Dubai Courts.
| Cites | Dubai Interim Real Estate Register Law · Dubai Real Property Registration Law · Dubai Escrow Accounts Law |
“Cites” and “Cited by” are built automatically from references in the full texts held in this library; they cover only instruments in the library.
Dubai Interim Real Estate Register Law
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Dubai Escrow Accounts Law
Requires developers selling off-plan units to be registered and licensed and to deposit buyers' payments in a separate escrow account per project managed by an accredited…
Dubai Real Property Registration Law
Makes the Land Department the sole registrar of real property rights in Dubai and gives the Property Register conclusive effect absent fraud; Article 4 limits ownership t…
Dubai Freehold Areas Regulation
Designates, by plot number across 23 Dubai areas shown on Land Department maps, where non-UAE nationals may hold freehold ownership without time limit or usufruct and lea…
Dubai Jointly Owned Property Law
Governs ownership, management and maintenance of jointly owned buildings and plots: common areas and units, owners committees, service and usage charges, title documents,…
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