The Dubai Real Estate Court has revoked the enforcement proceedings against a property unit in one of the Business Bay towers, confirming the real estate development company's ownership of the disputed unit.
The court found that the property had been seized despite no longer being owned by the buyer, following a previous ruling to terminate the sales contract and re-register the property in the company's name.
The case dates back to March 2024, when a real estate development company entered into a sale and purchase agreement with a customer.
According to this agreement, the customer was to purchase a residential unit for Dhs1.78 million, paying in instalments.
However, the buyer failed to pay the instalments on time, prompting the company to file a lawsuit. This culminated in a final judgement in April 2025, which terminated the contract and ordered the buyer to pay Dhs50,000 in compensation.
The judgement also re-registered the unit in the name of the plaintiff company.
When the company initiated enforcement proceedings in accordance with the dissolution ruling, it emerged that the disputed property had been seized in favour of a creditor in accordance with a notary public enforcement file dating back to 2024.
This seizure was based on an outstanding debt between the creditor and the previous purchaser, and an auction sale was underway. The company then submitted a request to the enforcement departments to cancel the seizure, but it was rejected.
Dr. Alaa Nasr, the plaintiff’s legal representative, said that Civil Procedure Law No. (42) of 2022 allows a third party to file a lawsuit to invalidate the execution procedures and claim the seized property, provided they have evidence of ownership or possession.
He pointed out that executive seizure is only valid on property owned by the person whose property is being seized at the time of execution and that loss of ownership due to a final judgement invalidates the seizure as it loses its legal basis.