Dubai court annuls Dh2.38m real estate deal, orders Dh250,000 compensation for seller

The ruling came after the buyer failed to make scheduled payments

Last updated: August 05, 2025 | 15:53

1 MIN READ

Dubai court annuls Dh2.38m real estate deal, orders Dh250,000 compensation for seller

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Dubai: The Dubai Real Estate Court has nullified a residential sale contract and ordered the re-registration of the unit under the selling company’s name after the buyer failed to meet contractual obligations, including the payment of scheduled instalments, according to Al Khaleej Arabic daily.

The court further ruled that the buyer must pay Dh250,000 in compensation to the company for damages and lost profits resulting from the delay, during which the company was unable to benefit from the property. The dispute stems from a 2019 agreement in which the company sold a completed residential unit for Dh2.386 million. The contract required a 10 percent down payment, with the remainder to be paid in 21 dated instalments. Although the unit was registered in the buyer’s name in December that year, the buyer defaulted on payments.

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Arguing it had upheld its end of the agreement, the company submitted the contract, payment records, a completion certificate, title deed, and an expert report to the court. The court upheld the contract’s binding nature, noting that while the seller must deliver the unit, the buyer is equally obliged to pay on time.

Though the penalty clause became void upon termination, the court ruled that the seller still had the right to compensation and set the amount at Dh250,000.

Legal consultant Dr. Alaa Nasr, the company’s legal representative, cited federal civil law, which allows a seller to retain ownership until full payment is made—even after the unit has been handed over.

Khitam Al AmirChief News Editor

With over 30 years of journalistic experience spanning from Jordan to the UAE, Khitam has spent the past 22 years reporting on national and regional news from Dubai, with a strong focus on the UAE, GCC and broader Arab affairs. As Chief News Editor, she brings extensive expertise in delivering breaking and engaging news to readers. Beginning her tenure as a translator, she advanced through roles as Senior Translator and Chief Translator before transitioning to editorial positions, culminating in her current leadership role. Her responsibilities encompass monitoring breaking news across the UAE and the broader Arab region, ensuring timely and accurate dissemination to the public. Born into a family of journalists, Khitam's passion for news was ignited early in life. A defining moment in her youth occurred in September 1985 when she had the opportunity to converse with the late British Prime Minister Margaret Thatcher during her visit to a Palestinian refugee camp north of Amman. During this encounter, Khitam shared her family's experiences of displacement from their home in Palestine and their subsequent refuge in Jordan. This poignant interaction not only deepened her understanding of geopolitical issues but also solidified her commitment to pursuing a career in journalism, aiming to shed light on the stories of those affected by regional conflicts. Khitam’s commitment to accurate and timely reporting drives her to seek out news that interests readers, making her a trusted source for news on the UAE and the broader Gulf region.

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