The Dubai Real Estate Court has voided a residential property sale agreement in a Riviera-area development after ruling that the developer failed to comply with its contractual obligations, particularly on construction progress and timely handover.
In its decision, the court ordered the developer to refund Dh516,872 to the investor and pay an additional Dh100,000 in material and moral damages, bringing the total award to more than Dh616,000. The developer was also directed to shoulder all court fees, litigation costs, and legal expenses.
Court documents showed that the dispute stemmed from an off-plan purchase agreement for a residential unit priced at Dh1.722 million, payable in two instalments. The investor had already complied with his obligations, settling the first instalment of Dh516,872, along with registration and administrative fees.
However, construction progress reports and official records presented in court revealed that the developer failed to follow the agreed construction schedule. The project had not reached a stage that would allow handover within the contractual period, resulting in prolonged delays.
The developer argued that the contract allowed extensions and claimed the project was close to completion. The court dismissed this defence, noting that the delay had gone beyond the allowable contractual period and that documentary evidence clearly established the breach.
As a result, the court ordered the cancellation of the contract and directed both parties to be restored to their pre-contractual positions, including the return of all amounts paid by the investor. The damages award reflected the investor’s lost opportunity to use or reinvest his funds due to the prolonged delay.The ruling reinforces Dubai courts’ firm position on protecting buyers in off-plan property deals, particularly where developers fail to meet delivery and handover commitments.
