Dubai Court Cancels Dh443,000 Property Ownership Over Unpaid Installments

The Dubai Real Estate Court has ordered the cancellation of a property sale agreement valued at Dh443,000 after the buyer defaulted on installment payments, and has directed that the unit’s registration be reversed in favour of the developer.

The ruling came after a dispute involving a hotel unit in the Business Bay area, originally sold in December 2024 between a real estate company and an investor. The total value of the transaction, which included administrative and registration fees, stood at Dh443,000.

Court records showed that the developer had fulfilled all its contractual obligations by registering the unit in the buyer’s name with the Dubai Land Department. The project itself had already been completed and was ready for handover since 2021.

However, while the buyer initially made partial payments, he later stopped paying installments beginning July 2025. Despite multiple formal notices issued by the company demanding settlement of dues, the buyer failed to respond or resume payments.

Following continued non-compliance, the developer filed a lawsuit seeking termination of the contract and cancellation of the property registration in the buyer’s name.

During court proceedings, the buyer did not appear despite being duly notified. The developer submitted supporting documents, including the sale agreement, account statements, completion certificate, and copies of payment reminders sent to the buyer.

The court found that the evidence clearly established a breach of contract, noting that the buyer had failed to meet his financial obligations even though the developer had fully performed its part of the agreement by delivering and registering the unit.

It further held that non-payment of agreed installments constitutes a material breach of contract, giving the seller the right to seek termination, particularly in the absence of any proof of payment or legal justification for withholding dues.

Accordingly, the court ruled to terminate the sale agreement, cancel the unit’s registration in the buyer’s name, and re-register the property in the developer’s name. The buyer has also been ordered to bear all fees, expenses, and legal costs associated with the case.

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