Your Dubai Property Buyer Has Pulled Out. What Are Your Options as a Seller?
2026
Updated: April 2026
You found a buyer, agreed on a price, signed the paperwork, and collected a security deposit. Then your buyer - citing lost investors, a failed mortgage, or simply changed circumstances - went quiet. Or called to say they’re walking away.

Now you’re left with a property that’s been off the market for weeks or months, and a buyer who’s hoping you’ll absorb the loss. Understanding how these situations are typically handled is a reasonable starting point.
Why This Is Happening More Often Right Now

A combination of tightening credit conditions, investor withdrawals, and deteriorating market sentiment has produced a noticeable increase in deal collapses across Dubai’s secondary market. Many buyers who moved quickly during the market’s record period are now looking for exits — and some are counting on sellers not knowing their options.
How These Disputes Typically Unfold

When a buyer defaults on a signed SPA, the situation that follows depends on a number of factors - primarily what the agreement says, whether both parties have met their documented obligations, and how the exit is handled.

In many cases where a buyer has exited without a recognised basis, sellers have been in a position to retain the security deposit as compensation. In others, where the circumstances are more complex - an undisclosed issue with the property, a dispute about what was agreed - the outcome is less straightforward.

Some sellers pursue formal channels through RERA’s Dispute Settlement Centre. Others reach a negotiated resolution. Which path makes sense depends on the specifics of the situation.
What Tends to Complicate the Seller’s Position

Even when a seller feels clearly in the right, certain factors can affect how a dispute plays out:
  • Outstanding mortgage or encumbrance on the property that wasn’t disclosed
  • Delays in obtaining the NOC from the developer
  • Informal written communications that could be read as agreeing to release the buyer
  • Documentation gaps in the original agreement process

This is why getting a clear picture of where you stand - before taking action - tends to produce better outcomes than moving quickly without that clarity.

We work with specialists who handle exactly these situations. If your buyer has pulled out and you want to understand your options, get in touch.