Dubai Court Directs Developer to Refund Dh286,527 to Investor After Property Row

The Dubai Real Estate Court has directed a property development firm to refund Dh286,527 to an investment company following a contractual dispute over a 2017 property sale.

The investment firm had agreed to purchase a property valued at Dh2,653,200 and paid approximately Dh1.18 million before halting further instalments. The company attributed the payment default to the death of its Qatar-based representative in 2019, which, it claimed, disrupted its legal operations until the Probate Court completed ownership transfer to the heirs in 2020.

The developer, however, maintained that it had fulfilled its contractual obligations, completing the project ahead of schedule and issuing multiple notices to the buyer for pending payments. After receiving no response, the firm sought intervention from the Dubai Land Department, which validated the termination procedures and allowed the property to be re-registered under the developer’s ownership.

The court-appointed expert’s report and supporting documents confirmed that the developer had acted lawfully. The court ultimately ruled that the developer could retain 30% of the unit’s value -- amounting to Dh795,960 -- as compensation, while refunding Dh286,527 to the buyer.

In its judgment, the court clarified that the plaintiff company, being a separate legal entity, was not excused from fulfilling its contractual duties due to the death of its representative. Such circumstances, the court said, do not constitute force majeure or emergency conditions under UAE law.

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