The Dubai Court of First Instance has ruled in favour of a property seller in a real estate dispute involving a transaction valued at Dh27 million, ordering a real estate brokerage company to pay Dh2,513,000 representing the deposit held by it.
The dispute arose after the purchaser failed to complete the property transaction and meet the contractual payment obligations within the agreed deadline. Although a binding sale agreement had been executed and a security deposit of Dh2.5 million paid, the purchaser did not settle the outstanding purchase price or proceed with the transfer of ownership.
The seller initiated legal proceedings seeking to establish the purchaser’s breach of contract, confirm the termination of the sale agreement and secure the right to retain the deposit under the terms governing default.
The proceedings focused on the contractual obligations of the parties and the consequences of the purchaser’s failure to complete the transaction within the stipulated period.
The seller’s legal team presented the agreement and supporting evidence to demonstrate that the purchaser had failed to fulfil the contractual requirements. The case centred on whether the breach entitled the seller to retain the deposit in accordance with the provisions agreed by the parties.
After examining the contractual terms and evidence, the Dubai Court of First Instance ruled in favour of the seller, confirming the termination of the sale agreement.
The court ordered the relevant real estate brokerage company to pay Dh2,513,000 to the seller, representing the deposit held by the brokerage. It also ordered the purchaser to bear the court fees and expenses, together with an amount towards legal costs.
The litigation was led by UAE-based legal consultancy Kaden Boriss, which represented the seller in seeking enforcement of the contractual provisions and recovery of the deposit following the failed transaction.
The judgment highlights the importance of clearly defined contractual obligations and default provisions in high-value property transactions. It also illustrates the legal remedies that may be available to sellers when purchasers fail to complete a transaction in accordance with the agreed terms.
For parties entering into substantial real estate deals, the dispute underscores the importance of understanding the legal consequences of failing to meet payment deadlines and the contractual conditions governing deposits, termination and financial liability.
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