Before You Pay a Token Amount to a Dubai Property Developer: One Lesson I Learned the Hard Way

Dubai has a huge number of real estate options, and when you start looking for a property, you will probably deal with several agents, brokers and developer sales teams.

There are many reasons why people choose to invest in Dubai. The city has a large and diverse property market, strong infrastructure, international demand and opportunities across different price ranges and property types. The market continues to attract investors from both the UAE and overseas. Dubai Land Department reported AED 252 billion in real estate transactions in the first quarter of 2026 alone, with foreign investment continuing to be a significant part of the market.

I am also a believer in the opportunities that Dubai’s real estate market offers. This article is therefore not intended to discourage anyone from buying property in Dubai.

Instead, it is about one practical lesson I learned from my own experience.

Token and booking payments

At some point, when looking at a property, you may be asked to make a token or booking payment to reserve a unit or block it while you make your decision. This is quite common in the Dubai property market.

But before making that payment, take one important step: make sure you understand and have written evidence of the terms of the payment — especially whether the amount is refundable.

Don’t rely only on what the sales agent tells you

The sales agent may explain the booking process and tell you that the amount is refundable if you decide not to proceed.

At the same time, the developer may have its own policies, terms and procedures.

The problem can arise when what you were told by the sales representative and what the developer later relies upon are not the same.

If you decide not to proceed and request your money back, you may find yourself dealing with the developer’s customer-care or legal team rather than the salesperson you originally dealt with.

And at that point, a verbal assurance can be difficult to rely upon.

What happened in my case

I was looking at a property in Dubai and was dealing with the developer’s sales team.

Before making the payment, I was informed by the sales representative that the amount I was paying would be fully refundable if I decided not to proceed with the purchase.

I therefore made a token payment of AED 45,846.

Importantly, I did not sign a Sale and Purchase Agreement (SPA), Offer to Purchase (OTP), booking form, or any other document accepting non-refundable terms.

I subsequently decided not to proceed with the purchase and requested a refund.

The developer declined the refund.

One point that particularly stood out to me was that, in the developer’s initial response, I was told that a refund would not be applicable in the case of a signed OTP. However, I had not signed an OTP or any other agreement.

During the subsequent correspondence, a receipt containing non-refundable wording was also provided to me. This document had not been provided to me at the time I made the payment, and I had not signed or accepted it.

Despite the absence of a signed OTP or other agreement from my side, my refund request was not approved.

I raised the matter with the Dubai Land Department. The matter was also pursued through further communication with the developer, but the refund was still not agreed.

At that point, I decided to take legal action.

What happened after I filed the case?

This was the part of the experience that surprised me most.

After the case was filed, the matter reached its first hearing.

On the first day the case was heard, the developer agreed to pay the full amount I had originally paid.

I eventually received the full payment back.

However, there was an important downside: by the time the matter was resolved, I had spent approximately one-third of the amount on legal fees and court-related costs.

So although I ultimately recovered the money, the experience was expensive, time-consuming and stressful.

The legal system is another part of the equation

One positive thing I took away from the experience is that there is a formal legal route available when a dispute cannot be resolved through the usual channels.

My experience should not be interpreted as a guarantee that every property dispute will have the same outcome. Every case depends on its facts, documents, contracts and applicable law.

If you do need to take a dispute to court, however, be prepared for the process to involve additional cost and complexity.

You may need to engage an appropriately licensed/accredited lawyer in Dubai, particularly if you are not familiar with the local legal process. Dubai Courts provides electronic case-registration channels, including registration through accredited law firms.

Another practical consideration is language. Dubai Courts’ current guidance states that documents that are not in Arabic may require a legal Arabic translation approved by the UAE Ministry of Justice. This means that emails, agreements and other supporting documents can involve additional translation costs before they can be used in court.

These are not reasons to be afraid of investing in Dubai. They are simply costs and practical considerations that buyers should understand before entering into a dispute.

What I would do differently now

The biggest lesson I took from this experience is simple:

Make the refund terms formal before making the payment.

If a sales representative tells you that a token or booking amount is refundable, don’t rely only on the verbal assurance.

Ask for written confirmation or a document clearly stating the terms before transferring the money.

If you are asked to sign an OTP, booking form, reservation form or any other document, read it carefully before signing.

Pay particular attention to terms such as:

• Whether the payment is refundable
• The conditions for obtaining a refund
• Cancellation charges or deductions
• What happens if you decide not to proceed
• Whether the developer can retain the payment if the transaction does not proceed
• Any deadlines or conditions attached to the refund

If the salesperson tells you that the payment is refundable but the document says otherwise, stop and clarify the discrepancy before paying or signing.

Even if the sales representative confirms that the amount is refundable, it is much safer to have that assurance documented.

Does signing a document weaken your position?

I would not say that simply signing a document automatically weakens a buyer’s position.

The important point is what you are actually agreeing to.

If you sign a document that clearly contains non-refundable terms, cancellation charges or other conditions, those terms may become an important part of any later dispute and can make your position more difficult than if those terms had never been accepted.

Therefore, don’t sign simply because a sales representative tells you that the document is “just a formality.”

Read it, understand it, and make sure it reflects what you were told before you sign.

My experience with Azizi Developments

For transparency, the developer involved in my case was Azizi Developments.

I am mentioning the name because this is a factual account of my own experience, not because I want to make a general statement about the company or its other customers.

My experience was that I was told the payment was refundable, but when I later requested the refund, it was initially refused. I pursued the matter through the available complaint and legal channels and ultimately filed a case.

The developer agreed to refund the full amount on the first day the case was heard.

The purpose of sharing this is not to tell you whether you should or should not buy from any particular developer. It is to encourage you to protect yourself before making any token or booking payment.

Dubai real estate: opportunity and responsibility

Dubai remains a market with significant opportunities for property buyers and investors. The continued scale of transactions, international investment and development activity reflects the depth of the market.

My experience has not changed my view that Dubai is an attractive place to consider property investment.

If anything, it has made me more conscious of the importance of understanding the transaction itself.

There are opportunities in Dubai real estate, but with opportunity comes the responsibility to understand what you are signing and what you are paying for.

A few minutes spent clarifying the terms of a token payment can potentially save months of correspondence, legal costs and stress later.

Have you had a similar experience?

I would be interested in hearing from other buyers who have faced similar situations with property token or booking payments in Dubai.

If you have experienced something similar, feel free to share your experience in the comments.

If you are currently dealing with a similar situation and would like to understand what happened in my case, you can also contact me through this website.

Please note that I am sharing my personal experience and documents only to the extent appropriate. This is not legal advice, and every property transaction can have different contractual and legal circumstances.

The simplest lesson I took away from the whole experience:

Before you pay the token, get the terms in writing.

Dubai offers significant real estate opportunities. Protecting yourself at the beginning helps ensure that those opportunities remain a positive experience.