Dubai Court Orders Property Buyer to Pay Dh1.68 Million for Breach of Contract

The Dubai Real Estate Court has ordered a property buyer to pay Dh1.68 million to the seller after failing to complete a Dh21 million purchase agreement.

The sum represents 80 per cent of a Dh2.1 million deposit held by a real estate brokerage under a security cheque. The court also awarded the seller 5 per cent annual interest from the date of the legal claim until full payment, as compensation for delays in completing the transaction.

Court records show the sales contract, signed in January 2025, covered a property measuring 809.11 square metres. The buyer had paid the deposit, with the remaining Dh18.9 million due upon property registration or through another Dubai Land Department-approved secured payment.

Under the agreement, if the buyer withdrew after signing, a penalty of 10 per cent of the total transaction value applied -- 80 per cent payable to the seller and 20 per cent to the broker. The buyer failed to pay the balance by the March 2025 deadline despite receiving a formal warning, prompting the seller to file suit under Article 148 of the Civil Transactions Law.

The court upheld the seller’s claim, awarding the Dh1.68 million penalty. It noted that the brokerage had not sought its 20 per cent share of the forfeited deposit. 

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