Court Orders Investors to Pay Dh1.72M After Withdrawing From Land Deal

Dubai court has ordered two investors to jointly pay Dh1.72 million to property sellers after they withdrew from a signed agreement to purchase a plot of land valued at Dh17.2 million and failed to pay the required deposit.

The dispute arose after the buyers signed a sale contract but did not proceed with the transaction or issue the deposit cheque equivalent to 10 per cent of the agreed price, amounting to Dh1.72 million. The sellers subsequently approached the Real Estate Court in Dubai seeking annulment of the contract and recovery of the agreed deposit, citing breach of contractual obligations.

Court records show that the contract, signed in July 2025, required the buyers to pay a 10 per cent deposit upon execution of the agreement, with the remaining purchase price to be settled within 45 days. However, the investors did not complete the payment within the stipulated timeframe.

The court ruled in absentia against the defendants, obligating them to jointly pay the sellers Dh1.72 million, along with 5 per cent annual legal interest calculated from the date the claim was filed until full settlement. The judgment also included the payment of court fees, expenses, and legal attorney charges.

In its findings, the court noted that the deposit serves as binding evidence of the contract and that failure to pay it without justification constitutes a breach of agreement. Such a breach entitles the sellers to retain the deposit in accordance with established legal principles.

The court further rejected the defendants’ arguments that the sellers were not entitled to the deposit, stating that the contractual terms were clear and binding. It affirmed that non-payment of the deposit amounted to a violation of the agreement, justifying the sellers’ claim along with applicable interest on the fixed amount.

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