Dubai court's ruling helps man to secure ownership of a villa he bought for Dhs23m

A Gulf national file a lawsuit to obtain a court ruling that would validate and enforce a contract for purchasing a residential villa in Dubai, priced at Dhs23 million.

Despite having paid the entire purchase amount, the plaintiff claimed the defendant did not proceed with the necessary procedures to transfer the property's title.

The conflict was resolved once the defendant's legal representative confirmed the contract's validity, acknowledged receiving the full payment, and agreed to a brokerage commission of Dhs100,000.

The Dubai Real Estate Court affirmed the contract's validity and enforceability, directing each party to cover their respective portions of fees, expenses, and legal costs.

The plaintiff explained that he had transferred the full purchase amount through three bank transactions to the defendant's account; however, the defendant neglected to finalise the title transfer.

During court proceedings, the defendant claimed that the plaintiff still owed Dhs210,000 for his share of the brokerage commission and requested that the title transfer be paused until this was settled. The plaintiff agreed to pay Dhs100,000 towards the commission, forwent a claim for Dhs5 million in compensation, and focused his demands solely on confirming the contract’s validity and enforcement.

The legal representative of the defendant accepted the Dhs100,000 payment into her client's account, confirmed the contract's validity, acknowledged receipt of the full property price, and expressed no objections to transferring the title.

The court recognized that the sales contract was duly signed by both parties without any legal barriers hindering the title transfer. It was determined that the plaintiff adhered to his financial obligations for the villa purchase, as verified by bank transfer records and the defendant’s explicit acknowledgment of receiving the full amount.

The court noted that the reason for delaying ownership transfer was invalidated by paying the accepted brokerage fee and recognising both the contract's validity and complete receipt of funds. Consequently, the court upheld that the contract was valid and enforceable.