Dubai court orders woman to pay Dhs300,000 compensation to a real estate firm for breaching deal

The Real Estate Court in Dubai has ruled to terminate a sales and purchase agreement for a residential unit between a real estate development company and a European woman.

The court ordered the removal of the unit from the records of the Department of Land and Property and its re-registration in the name of the company, and obliged the woman to pay compensation of Dhs300,000 to the company, with a 5% interest from the date of the final ruling.

According to the details of the case, a European woman contracted with the company in March 2022 to purchase a residential unit in Marina area of Dubai for Dhs4,308,000, in addition to the real estate registration fees amounting to 5% of the value of the unit.

It was agreed that the price of the unit would be paid in eight installments, with the last to be paid in February 2024.

The contract also stated that the unit would be delivered after the full payment of its value, as it was fully constructed.

The company clarified that it had complied with the terms of the agreement, registering the unit with the Department of Land and Property in Dubai, but the buyer breached her obligations by only paying Dhs1,033,000, distributed as Dhs861,560 as a contract deposit and Dhs172,360 as registration fees, while refusing to pay the remaining installments due.

In the lawsuit, the company demanded the termination of the contract and the payment of the remaining amount of the unit's price, as well as compensation for the damages incurred due to the delay in paying the due installments.