Dubai court cancels Dh814,000 Turkish villa sale contract, orders refunds
Ruling follows dispute over Turkey property bought 12 years ago through UAE brokerage
The Dubai Real Estate Court has annulled a sales contract for a residential property in Turkey, ruling that the defendants must return payments made along with legal interest and compensate for damages.
The case arose from a 2013 agreement, brokered in the UAE, in which the plaintiff purchased a villa for Dh814,000, paying Dh330,000 in instalments according to an official schedule. The contract stipulated delivery within 20 months, no later than the end of 2015, but the project stalled in Turkey, and the payments were not refunded.
In 2025, the plaintiff filed a lawsuit requesting contract rescission, reimbursement of paid amounts with interest, and compensation for material and moral damages.
During hearings, the defendants challenged the court’s jurisdiction, claiming the contract was with a foreign company in Turkey and that they signed only in a representative capacity.
They also argued that legal notice was not properly served before filing the case. The court dismissed these arguments, affirming its territorial jurisdiction due to the contract’s signing in the UAE, the presence of the brokerage’s office within the country, and the documented receipt of payments locally.
Legal advisor Dr. Alaa Nasr said the ruling highlights the legal framework governing foreign property transactions conducted in the UAE through local brokers, emphasizing that the location of the contract and the receipt of payments within the country establish jurisdiction and responsibility.
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