Dubai Real Estate Court rescinded a sale agreement for a plot of land valued at Dhs80 million and ordered the seller to refund the buyer the Dhs30 million already paid plus a 5 per cent annual interest from the date of the claim until full payment.
The court also ordered the seller to give the buyer Dhs1.5 million in compensation for the harms resulting from her breach of contractual obligations and to pay the incurred charges, expenses and lawyer’s fees.
The case dated back to an agreement concluded in May 2025 wherein the buyer agreed to purchase a plot of land in Dubai Silicon Oasis from the seller for Dhs80 million. This was followed by another agreement on May 13 of the same year that restructured the terms of the sale.
According to the official documents, the plaintiff paid Dhs30 million of the land’s purchase price via three cheques, which were confirmed to have been cleared from his account, provided that the remaining Dhs50 million would be paid upon the completion of the title transfer at the Land Department.
After fulfilling his financial obligation, the plaintiff requested the seller to complete the title transfer procedures upon payment of the remaining balance but the latter failed to appear at the Land Department although she received a formal legal notice to attend and finalise the transaction.
As her response did not state a definitive, binding position regarding fulfillment, the buyer filed a lawsuit seeking rescission of the agreement, recovery of the amount paid and compensation.
The court found that the plaintiff had fulfilled his obligations by paying the down payment and expressing his readiness to pay the balance, whereas the defendant breached her obligation to transfer title and deliver the property and hence the rescission of the agreement was justified.
The court brought the contracting parties to the status quo ante, having established that the seller’s breach had deprived the buyer of the ability to invest in or dispose of the land.