Ruling upholds seller’s contractual obligations despite dispute over mortgage clearance
The Dubai Court of Cassation has dismissed an appeal by a property owner seeking to annul the sale of a 19-storey building in Al Mamzar valued at Dh295 million, reaffirming an earlier ruling by the Court of Appeal.
The dispute arose after the seller failed to clear the property of a registered mortgage within the agreed 30-day period, preventing ownership transfer to the buyer.
Under the 2024 sale agreement, the seller was required to release the property from liens in exchange for a manager’s cheque from the buyer covering the full purchase price. However, the creditor bank demanded repayment of Dh435 million for two properties before issuing the clearance letter, delaying the transfer.
The seller argued the buyer had obstructed payment, citing WhatsApp messages allegedly confirming delayed cheque delivery. The court rejected these claims, stating that the seller’s obligation to clear the mortgage was fundamental and independent of the buyer’s actions. Evidence confirmed the lien remained, and prior rulings were upheld, closing the case.
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