Here's a message we get more often than you'd think. "I paid the booking amount on a Dubai studio, but something's come up at home and I need the money back. It's refundable, right? I haven't even signed the SPA." Maybe. Maybe not. The honest answer depends on what he signed when he paid, whether the sale has been registered, and why he wants out. Most buyers never ask those questions until they need the money back. So let's ask them now.
What a booking amount actually is
A booking amount (you'll also hear reservation fee or token) holds a specific unit for you for an agreed period while the paperwork is done. That's it. It doesn't make you the owner, and it doesn't give you a title deed. In many off plan deals, it's credited towards your down payment once the sale goes ahead.
There's no fixed booking amount set by law. It varies by developer, project and payment plan. Some take a set sum, others ask for the full down payment straight away. Always get a written cost sheet that shows the booking amount separately from:
- The down payment. On a AED 689,000 studio with 10% down, that's AED 68,900.
- The Dubai Land Department fee, 4% of the price on off plan sales plus admin charges. On the same studio, about AED 27,560.
- Any admin or processing charges, and whether those are refundable.
If all three are lumped into one number on the receipt, ask them to split it. It matters a lot if you ever cancel.
Is it refundable?
Not automatically. Three things decide it.
What your reservation form says. This is the first document to read, and most people skim it. Look for the words refundable, non refundable, forfeited, and the holding period. If the form says the booking amount is forfeited if you don't sign the SPA by a certain date, that's usually what happens.
How far the sale has gone. Before the SPA is signed and the sale is registered, you're mostly dealing with the reservation terms. After registration, Dubai law takes over.
Who's walking away, and why. If you change your mind, you're the one in breach. If the developer can't deliver, or the unit is no longer available, the position is very different.
Once the sale is registered: what Dubai law allows
Off plan sales are registered by the developer in DLD's interim register, known as Oqood. Once that happens, Article 11 of Law No. 13 of 2008 (as amended) sets out what a developer can do if a buyer stops paying. As explained by Dubai lawyers in a Khaleej Times report in October 2026, the developer must go through DLD, which gives the buyer 30 days' notice to pay or settle. After that, DLD certifies how complete the project is, and the developer's options depend on that figure:
Read that again with a real number. On a AED 1,000,000 apartment that's 50% built, the developer can keep up to AED 250,000 if you default. That's not a booking fee. That's a quarter of the price. Any balance owed back is generally due within one year of termination or 60 days of resale, whichever comes first.
Two important protections run the other way. These steps can't be skipped: the law treats them as public order, so a developer can't just keep your money without the DLD process. And if RERA cancels a project, buyers are entitled to a full refund of what they paid into escrow under Dubai's escrow law.
One more thing, because it gets confused constantly. There's no general "cooling off" period in Dubai off plan sales. The 30 day notice is a chance to pay, not a free exit.
Buying a resale property? Different rules
For ready properties bought from an owner, the deal usually runs through an MOU known as Form F. The buyer typically pays a deposit of around 10% when both sides sign, and the transfer happens at a DLD trustee office within the agreed window, often 30 to 60 days. If the buyer pulls out without a valid reason, they risk losing that deposit. If the seller backs out, the seller can be liable to compensate the buyer. What happens if your mortgage is rejected depends on what Form F says, so get a clause covering it before you sign. Our step by step guide to what happens after you select a property in Dubai walks through the MOU, the deposit cheque and agent fees.
What to check before you pay a single dirham
- Verify the developer and project with DLD's official tools. Our guide on how to vet a Dubai off plan developer shows how.
- Pay into the right account. For off plan, buyer payments should go into the project's escrow account, not a personal account and not "the agent's company for now".
- Read the reservation form for the holding period, the SPA signing deadline and the refund clause.
- Get the cost sheet in writing, with the booking amount, down payment, DLD fee and admin charges as separate lines.
- Check the payment plan fits your cash flow for the whole term, not just the first month. This is where most defaults start.
What happens after you pay
Typically, the developer issues a receipt and a reservation form, sends the SPA for signing within the agreed period, and then registers the sale in Oqood. Ask for the Oqood registration certificate once it's done. A booking receipt isn't proof of a registered purchase. Our guide to the Dubai SPA explains what to look for before you sign it, and later, our guides to title deed verification and snagging before handover cover the end of the journey.
How to ask for a refund properly
If you want out, do it in writing, through the contact route named in your reservation form or SPA. Include the project, unit number, amount paid, payment date and copies of your receipts. Then ask for the answer in writing too: whether they'll refund, how much they'll deduct and on what basis, the net amount, and when you'll receive it.
Before you send it, ask about alternatives. Some developers will let you switch to a different unit or project, or sell your contract to another buyer, rather than lose the money. Those options are entirely at the developer's discretion, but they're often better than a forfeit.
My honest advice
Treat a booking amount as money you might not get back. If you're not sure about the payment plan, the location or your own finances, don't pay it yet. Ask for the reservation form first, read it overnight, and only pay when you'd be comfortable seeing the deal through to handover. If you're comparing projects, our guide to SAMANA projects by budget is a good place to start, and our Dubai team will happily walk you through any reservation form before you sign. This is general information, not legal advice.
