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Off-Plan Refund UAE: Unregistered Booking, AED 183,652 Back
Introduction: AED 183,652 Deposit. Unregistered Booking. Refund Ordered.
Two buyers paid AED 183,652 to book an off-plan apartment in Abu Dhabi. The booking was never shown to be entered in the initial real estate register. In this off-plan refund UAE judgment of 15 October 2026, the Abu Dhabi Commercial Court of First Instance rescinded the booking agreement and ordered the sub-developer to pay the buyers AED 183,652, with legal interest at 5% a year.
The buyers also asked for a further amount equal to the deposit. That request was rejected. Their claim against the master developer of the project was held inadmissible.
According to the buyers' case as recorded in the judgment, they signed booking agreement No. (0250) with the sub-developer on 29 January 2026. The price was AED 3,673,039, payable in nine instalments: eight of 5% each and a final 60% on handover. The second instalment was due on signing the sale and purchase agreement (SPA), specifically on 28 February 2026.
The buyers said that on 27 February 2026 the sub-developer emailed them asking for the second instalment before the SPA was signed, before the developer's no objection certificate and without title documents. On 1 March 2026 it sent a blank draft SPA for review, the first time the buyers saw it. On 10 March 2026 the buyers set out their concerns and asked to end the agreement with a full refund. On 13 March 2026 the sub-developer insisted on the SPA terms, saying they were brand terms that could not be changed.
The sub-developer argued that the booking agreement was valid and binding, that the buyers knew its standard SPA form in advance, that they chose not to proceed, and that keeping the deposit rested on the contract and the law.
What the Court Decided: Booking Cancelled, Deposit Back
The operative part of the judgment reads, in four orders:
The claim against the master developer is inadmissible, as it was brought against a party without standing.
The booking agreement is rescinded, and the sub-developer must pay the buyers AED 183,652.00 with legal interest at 5% a year from 29 August 2026 until full payment, the total interest not to exceed the principal.
The buyers and the sub-developer bear the fees, judicial expenses and lawyers' fees of AED 200, equally between them.
All other requests are rejected.
What the Law Says: Not Registered Means Not Binding
The Court quoted Article 27 of Law No. 3 of 2015 regulating the real estate sector in the Emirate of Abu Dhabi. It creates the "initial real estate register" for all dispositions of units sold off-plan, and provides that these dispositions are not binding on any of their parties, or on third parties, unless registered in that register.
Under Article 28 of the same law, the Court said, the duty to register falls on the sub-developer as the seller, although the buyer may register at the seller's expense if the seller refuses.
The Court also relied on Article 218 of the Civil Transactions Law: a valid contract may be non-binding on one or both parties where a right to rescind exists without mutual consent or a court order. Clause 30 of the booking agreement allowed the sub-developer to end the agreement without a court order if the buyers did not sign and return the SPA within seven working days, breached any term, or notified withdrawal. On that basis, the Court held that the booking agreement is a non-binding contract.
Can I Get an Off-Plan Refund in the UAE? What This Court Held
The Court found that registration of the booking in the project's initial real estate register was not proven. Under Article 27, the transaction was therefore not binding on either party: validly concluded, but not binding in law because it was not registered.
The sub-developer said registration depended on completing the contract and signing the final agreement, and that the buyers' failure to sign the SPA and pay the second instalment triggered its own right to terminate. The Court rejected this. Article 15/2 of the same law requires the buyer to pay the price according to actual construction progress, unless agreed otherwise with the developer, but the law "did not make registration in the initial real estate register conditional on paying the advance payment or signing the sale and purchase agreement".
Because the contract was not binding on either party, the Court held that the sub-developer must return what it received. The buyers' requests necessarily included rescission, even though rescission was not expressly asked for, and the consequence was to restore the parties to their position before the contract. No contractual interest had been agreed, so the Court applied Article 84 of the Commercial Transactions Law and awarded 5% a year from the date of the judicial claim, 29 August 2026.
For another property ruling, see our note on eviction rules for Dubai tenants.
Off-Plan Refund UAE: Why the Master Developer Was Let Off
Article 2 of the Civil Procedures Law accepts no request or defence without a legitimate and existing interest. The Court examined the booking agreement, the cheque, the bank account statement and the emails. It found that the contract, negotiations and payments were exclusively between the buyers and the sub-developer. The parties admitted during the investigation that the master developer received no money and did not sign the booking agreement or the draft SPA. The claim against it was held inadmissible.
Double the Deposit? The Court Said No
The buyers asked for a further AED 183,652, relying on Article 137 of the Civil Transactions Law of 2025. The Court noted that the correct law is Federal Law No. 5 of 1985, and the relevant article is Article 148, because the new Civil Transactions Law came into force only in June 2026, after the booking agreement was signed.
Under Article 246 of the Civil Transactions Law, a contract must be performed in good faith. The Court said that not disclosing the SPA terms when the booking agreement was signed is a breach of the legal obligations of good faith and disclosure.
The Court still rejected the request. It noted three points:
The buyers' email objected to the SPA, asked for the booking to be ended amicably or by the developer with a full refund either way, and said they did not wish to continue discussing the issues.
The buyers could have asked for a copy of the standard terms before signing, and for written clarifications about any reservations on resale procedures.
The booking agreement did not meet the formal registration requirement, which made the disposition void with no legal effect other than restoring the position before the contract.
For a recent Abu Dhabi ruling on a villa project, see our note on a construction dispute over an unfinished villa.
Key Takeaways from the Judgment
The Court held that an off-plan booking not proven to be registered in the initial real estate register was not binding on either party (Article 27, Law No. 3 of 2015).
The duty to register lay on the seller (Article 28); registration was not conditional on paying the advance payment or signing the SPA.
The booking agreement was rescinded and AED 183,652 ordered refunded, with 5% a year from 29 August 2026, capped at the principal.
The master developer, which received no money and signed nothing, had no standing.
The claim for an amount equal to the deposit was rejected.
How Juris Maestro Can Help
For off-plan buyers, investors, developers and sub-developers: Juris Maestro reviews and drafts booking agreements, sale and purchase agreements, termination and refund notices and settlement terms, and explains the options and timetables when an off-plan property refund UAE question comes up. Fixed upfront fee, and you speak directly to the founder. As legal consultants in the UAE, our work is advisory and drafting.
If you're unsure, let's talk. Before it turns into a case.
info@jurismaestro.com | +971 56 116 3390 | www.jurismaestro.com
This article interprets a court judgment for general information only. It is not legal advice.
