How You Can Almost Lose an Off-Plan Property in the UAE Because of Weak After-Sales Support

This is especially true when it comes to off-plan property in the UAE: payment plans, instalment schedules, multiple units, future resale plans and communication with the developer.

In such transactions, it is critical not only to buy the property, but also to manage what happens after the purchase: tracking the payment schedule, monitoring communication with the developer, checking resale options, obtaining the developer's approval, arranging the transfer and controlling the risk of default.

Recently, a client approached me with a situation that clearly shows what can happen when proper after-sales support is missing.

The names of the client, the previous broker, the managers, the project and the developer have been hidden in this article. Some details have been changed or generalised to preserve confidentiality. The essence of the case and the logic of the actions remain the same.

This is not legal advice. It is a practical case study of broker support in a complex off-plan property situation in the UAE.

The Starting Point

The client had purchased two units in an off-plan project in Ras Al Khaimah, on Al Marjan Island.

Both units were sea-view studios. The original plan was logical: buy two units, later sell one of them after price appreciation, and use the proceeds to continue paying for the second one.

In other words, the client did not intend to carry the full financial burden of two units all the way until handover. The strategy depended on one unit being sold earlier in order to support the second one.

On paper, this may look reasonable. But only under one condition: someone must be controlling the payment schedule, payment deadlines, resale conditions and the developer's position.

This is exactly where the problems began.

What Went Wrong

The main issue was not that the client did not want to pay. Based on the correspondence and documents, the situation looked different: the client was trying to understand what was happening, believed she was acting within the structure discussed earlier, and expected the payment schedule to have been agreed differently.

In the previous correspondence, there was an individual payment schedule: first a deposit, then the next payment, followed by regular payments every six months. There was also confusion about how much money had actually been allocated to each of the two units.

The client's previous broker believed that the paid percentage had been distributed roughly equally between both units. The developer later showed a different picture: one unit had more paid towards it, while the other had less.

In practical terms, this means one important thing: the client may have believed that the payments were covered further ahead than the developer was seeing in its own system.

And when a client buys two units, this kind of misunderstanding becomes especially dangerous. One incorrectly understood payment plan — and suddenly there is a default risk under two separate contracts.

The Default Notice: When the Situation Became Critical

At some point, the developer issued a notice to the client stating that she was in breach of the contract. In the UAE, such letters are often referred to as default notice.

Across the two units, the outstanding amount was around AED 278 000. The response window was limited. If the client failed to respond or resolve the issue, the developer could start a default procedure under both contracts.

This was no longer a simple payment reminder. This was the stage where you cannot "think about it for a week" and cannot simply wait for someone to call back.

In this situation, there were three risks:

1. Losing one unit.
2. Losing both units.
3. Making a poor decision in panic, without properly understanding the numbers.

When the client came to me, we had to quickly reconstruct the full picture: what had been purchased, how much had been paid, where the outstanding balance appeared, what the developer was offering, and whether the situation could still be saved.

What the Developer Offered

The developer gave two main options.

The first option — to pay the full outstanding amount on both units and continue both contracts.

The second option — to cancel one of the units, apply a cancellation penalty, and transfer the remaining paid amount to the second unit.

At first glance, the second option looks painful, because the client loses one unit and pays a penalty. But if there is no cash available to clear the full outstanding amount on both units, this option may become a way to avoid losing everything.

In essence, the developer said: either the client clears the overdue amount on both units, or one unit is cancelled and the second unit is preserved in a cleaner position.

It was an unpleasant, but concrete settlement proposal.

What We Did

The first thing I did was not to start arguing emotionally or blaming everyone involved. In situations like this, emotions are understandable, but they do not help. What is needed is proper document work. We moved step by step.

We Reconstructed the Timeline

We collected old emails, payment reminders, sale and purchase agreements, reservation agreements, invoices and correspondence with the developer's managers.

It was important to understand not only the current outstanding amount, but also how the client ended up in this position in the first place.

We Separated the Two Units

When a client has two units, you cannot look at the total amount "in general". You need to see the position for each unit separately:

• how much has been paid towards the first unit;
• how much has been paid towards the second unit;
• which payments are overdue;
• what balance remains;
• what the consequences are under each contract.

Without this, the client cannot make a rational decision.

We Requested the Developer's Official Position

We asked the developer to confirm:

• the statement of account separately for each unit;
• the exact overdue amount;
• whether any late payment penalties apply;
• whether one of the units can be sold;
• whether the developer can issue approval for the transfer;
• the transfer conditions;
• any additional fees;
• whether a buyer can clear the outstanding amount as part of the transaction.

This was important because the client's original intention was to sell one unit and preserve the second one.

We Responded Before the Deadline

The most important thing in such cases is not to stay silent.

We sent an official response before the deadline expired, so that the developer could not interpret the situation as being ignored. In the letter, we recorded that the client wanted to resolve the matter, was not refusing her obligations, and was asking the developer to pause the default procedure while both sides discussed a solution.

This helped us buy time and move the conversation from a formal default scenario into a negotiation.

We Asked the Developer to Reconsider the Penalty

We did not try to dispute the principal outstanding amount as a fact. The main payment obligation under a payment plan is usually harder to challenge, especially if it is reflected in a signed SPA.

But we used the confusion around the payment schedule and allocation of payments as an argument for a goodwill gesture from the developer.

The position was simple: the client had acted in good faith, had not disappeared, had already paid significant amounts, and the misunderstanding had arisen because of the complex structure involving two units and previous communication.

So we asked the developer to consider:

• waiving the cancellation penalty;
• reducing the cancellation penalty;
• or increasing the amount transferred to the remaining unit.

We Requested the Final Terms Before Signing

Before a client agrees to combine the financial position of several units — something often referred to in the UAE as consolidation, written confirmation is required on the following points:

• which unit is being cancelled;
• what amount is being retained;
• what amount is being transferred;
• which unit remains active;
• what balance will be payable at handover;
• whether any additional fees apply;
• whether the default risk will be closed;
• how the documents will be signed;
• whether remote signing or signing through a power of attorney is possible.

You should never agree to this verbally. Everything must be in writing.

Why Selling the Unit Does Not Always Save the Situation

Many clients in this moment say: "Then let's just sell the unit."

But with off-plan property, it is not always that simple.

If there is an unpaid or overdue balance on the unit, the developer may refuse to issue approval for the transfer. In the UAE, this approval is often called NOC, or No Objection Certificate. The developer may also refuse to start the transfer process, which is often called transfer, until the outstanding amount is cleared.

That means that, formally, the unit can be offered for sale. But in practice, the transaction may not go through without the developer's participation and approval.

In this case, the developer confirmed that resale was possible in principle, but only after all outstanding amounts and applicable fees were paid.

That is why the strategy of "we will find a buyer tomorrow" was not enough.

The right approach was to look at the broader picture:

• can the outstanding balance be cleared before the transfer;
• can the buyer pay part of the amount directly into the project escrow account;
• will the developer approve a clear process;
• will the final cost for the buyer become too high;
• could selling at a heavy discount be worse than consolidating the position into one unit.

The Negotiation Result: The Penalty Was Reduced by Half

After several emails, clarifications and a request for reconsideration, the developer confirmed that the client could proceed with the consolidation option.

At the same time, the developer agreed to reduce the cancellation penalty for one unit by half as a goodwill gesture.

Initially, the penalty was around AED 74 888. After reconsideration, it was reduced to AED 37 444.

The new calculation became significantly softer for the client:

• amount paid towards the cancelled unit — around AED 474 397;
• reduced penalty — around AED 37 444;
• amount transferred to the remaining unit — around AED 436 953;
• new balance payable on the remaining unit at handover — around AED 393 975.

This is an important point. The client still loses one unit, but the financial loss became smaller. Almost all the money paid towards the cancelled unit does not disappear; it is transferred to the remaining unit.

The saving compared with the developer's original proposal was approximately AED 37 444.

Why the Developer Still Kept Part of the Penalty

The developer explained its position by saying that an agency commission had been paid when the unit was originally sold. According to the developer, after the contract is cancelled, it cannot recover that commission from the previous agent.

This was the reason given for keeping part of the penalty.

It is important to understand: this does not mean that the agent is receiving any new money now. The point is about a commission which, according to the developer, had already been paid at the time of the original sale.

For the client, this is an unpleasant part of the settlement. But from a negotiation point of view, we were able to improve the conditions: the penalty was reduced by half, and the amount transferred to the remaining unit increased.

Why This Can Be Seen as a Partial Win

In an ideal world, the client would have kept both units and sold one of them according to the original plan. But in reality, the situation had already reached overdue payments, a default notice and the risk of losing both contracts.

At that point, the goal was not to achieve the perfect scenario. The goal was to minimise the damage.

What we managed to achieve:

• the client responded before the deadline;
• the situation did not move into a silent default scenario;
• the developer entered into a settlement discussion;
• we obtained a written structure for the solution;
• the penalty was reduced by half;
• the amount transferred to the remaining unit was increased;
• the remaining unit should be preserved in active status;
• the new handover balance became lower than in the initial proposal.

This does not change the fact that the client loses one unit. But it becomes a controlled decision, not a chaotic loss of two contracts.

What Must Be Checked Before Signing the Agreement

Even after the improved terms, I would not recommend signing anything blindly.

Before signing the final agreement, it is necessary to make sure that it clearly states:

• the cancelled unit is closed without any future obligations for the client;
• the remaining unit stays active and is not in default status;
• the amount transferred to the remaining unit is stated precisely;
• the balance payable at handover is stated precisely;
• there are no additional penalties, administrative fees or hidden charges;
• the signing procedure is clear;
• if the client is outside the UAE, remote signing or signing through a power of attorney is available.

In such matters, you cannot rely on verbal comments from a manager. The final numbers must be in the document.

What Would Have Happened If the Client Had Asked for Help Earlier

If the after-sales support had been active from the beginning, the situation could have been managed more smoothly.

A broker should have been regularly checking:

• the current payment schedule;
• the amounts allocated to each unit;
• the dates of upcoming payments;
• the possibility of resale;
• the conditions for obtaining the developer's approval;
• the developer's position on overdue payments;
• the exit strategy from one unit in advance.

This is especially important when a client buys two units with the plan of selling one of them later.

The problem is not always that the market is bad. And it is not always that the developer is too strict. Very often, the problem is the lack of process management after the sale.

The Strategy Going Forward

After reaching a settlement with the developer, the client still has several possible scenarios.

Strategy 1: Keep the Remaining Unit Until Handover

If the consolidation is completed and one unit remains in clean status, there is no need to sell it in panic.

The advantage of this option is that the unit becomes easier for a buyer to understand closer to handover. The closer the construction is to completion, the less uncertainty there is. A buyer can assess the unit, the project, the timeline and future liquidity more easily.

The downside is that the client must be ready for the remaining payment at handover.

Strategy 2: Sell Quickly After the Status Is Cleaned Up

If the client needs to exit the position faster, the unit can be listed as a genuine resale from a motivated seller.

But the price must be realistic. In a competitive studio market, you cannot simply set the price based on what you want. You need to look at direct competition, unit size, view, payment plan, the total cost for the buyer and the real speed of sale.

A fast sale almost always means a discount.

Strategy 3: Sell Closer to Handover

In my view, this is the more reasonable scenario if the client has the ability to wait.

Closer to handover, the unit may become more liquid: buyers understand the timeline better, are less afraid of construction risk, and can calculate future rental income or personal use more clearly.

If the Al Marjan Island market continues to grow and interest in Ras Al Khaimah remains strong, selling closer to handover may give the client a chance to exit at break-even or with a smaller loss.

But it is important not to promise guaranteed growth. The market can change. That is why the strategy must remain flexible.

Key Lessons for Buyers of Off-Plan Property

This case highlights several important lessons.

The Payment Schedule Must Be Controlled by the Client and the Broker

You cannot rely on verbal explanations. You need to have an up-to-date statement of account and understand when the next payment is due.

If There Are Several Units, Each One Must Be Managed Separately

Even if the units were purchased from the same developer, they are different contracts, with different payment allocations and different risks.

Broker Work Does Not End After the Contract Is Signed

A good broker should support the client after the sale: help with communication, warn about payments, check resale options and step in before the situation reaches default.

You Cannot Wait Until the Last Day

If a default notice arrives, you need to respond immediately. Even if the money is not available, it is important to show that the client is responsive and wants to resolve the matter.

Every Decision Must Be Confirmed in Writing

A phone call can help, but the final position must be in an email or a document. This is especially important when the matter involves cancellation, transfer, consolidation or waiver of penalties.

My Conclusion as a Broker

In this situation, my role was not simply to "sell the unit". Selling was only one of the possible tools.

The main task was different: collect the documents, reconstruct the real picture, stop the default risk, bring the developer into a written dialogue, obtain final terms and help the client make a decision based on numbers rather than panic.

This Is Exactly Where You See Why a Client Needs a Broker Who Does Not Disappear After the Deal

UAE real estate can be a powerful investment tool. But off-plan property requires discipline, control and proper support. A mistake in the payment schedule or a lack of communication with the developer can cost tens of thousands of dirhams — and sometimes the entire property.

If you are interested in real estate in Dubai, write to me in a personal telegram @alexander_nevsky or call/WhatsApp in Dubai:
+971 50 503 1984

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