Dubai Real Estate Court Cancels Dh80M Land Sale Deal, Orders Dh30M Refund

Dubai Real Estate Court has cancelled a land sale agreement worth Dh80 million and ordered the seller to refund the buyer Dh30 million already paid, along with annual interest of 5 per cent from the date the claim was filed until full repayment.

 

The court also directed the seller to pay Dh1.5 million in compensation for the losses arising from her breach of contractual obligations, in addition to court charges, legal expenses and lawyer’s fees.

 

The dispute arose from an agreement signed in May 2025, under which the buyer agreed to purchase a plot of land in Dubai Silicon Oasis for Dhs80 million. A subsequent agreement dated May 13, 2025, revised the terms of the transaction.

 

According to court documents, the buyer paid Dh30 million towards the purchase price through three cheques, all of which were confirmed to have been cleared from his account. The remaining Dh50 million was to be paid upon completion of the title transfer at the Dubai Land Department.

 

After making the initial payment, the buyer sought to complete the transaction and expressed his readiness to pay the outstanding balance against the transfer of ownership. However, the seller failed to attend the Land Department to finalise the process, despite receiving a formal legal notice requesting her to do so.

 

The seller’s response did not provide a clear and binding commitment to fulfil her contractual obligations, prompting the buyer to approach the court. He sought cancellation of the agreement, repayment of the amount paid and compensation for the resulting losses.

 

The court found that the buyer had fulfilled his obligations under the agreement by paying the initial amount and demonstrating his readiness to settle the outstanding balance. The seller, however, had failed to meet her obligation to transfer ownership and deliver the property.

 

On that basis, the court ruled that rescinding the agreement was justified and ordered the parties to be restored to their positions before the transaction.

 

The court also established that the seller’s breach had deprived the buyer of the opportunity to invest in or otherwise dispose of the property, warranting compensation in addition to the refund and interest.