Dubai court rejects property owner's plea to terminate sale contract of a 19-storey building

Dubai Court of Cassation dismissed a property owner’s appeal against the Appellate Court’s ruling, which had previously rejected his claim to terminate a sales contract of a 19-storey building in Al Mamzar area, valued at Dhs295 million.

According to case files, the seller breached his obligation by failing to release the mortgage on the property, preventing its ownership transfer to the buyer.

The case dates back to 2024 when both parties signed a sales agreement.

The contract stipulated that the seller would clear the mortgage within 30 days, while the buyer would issue a cheque for the full amount upon ownership registration.

The creditor bank, however, required settlement of a total debt of Dhs435 million, covering the disputed property (Dhs295 million) and another property owned by the seller (Dhs140 million).

After reviewing the case and an expert real estate report, the Court of First Instance rejected the seller’s claim to terminate the contract, affirming that the property remained mortgaged to the bank.

The Appellate Court upheld this ruling in June 2025, stating that the seller had breached his contractual obligations.

The seller then filed an appeal with the Court of Cassation, alleging that the buyer had violated the agreement by refusing to issue the agreed-upon cheque, preventing him from settling the bank debt and releasing the mortgage.

The seller allegedly submitted WhatsApp messages as evidence, claiming the buyer had promised to deliver the cheque within a week of signing the contract. However, the court rejected this argument, upheld the previous ruling, and closed the dispute.