Dubai court terminates Dhs1.03 million property sale over unpaid installments

Dubai’s Real Estate Court has terminated the sale of a residential unit valued at Dhs1.03 million after the buyer failed to complete the agreed installment payments.

The court ordered the purchaser to vacate the property and hand it back to the selling company. It also required him to pay Dhs78,000 annually for using the unit from the date he received it until he delivers it to the company.

The company told the court that it sold the Dubai unit under a payment schedule and handed it over to the purchaser under a formal handover certificate. Although the buyer paid Dhs658,000, the company’s account statement showed an outstanding balance of Dhs527,000 as of 10 April 2026. The amount included overdue installments, late-payment penalties, service fees, and electricity and water charges.

The company said it had sent the purchaser a notice demanding payment, but received no response. It asked the court to cancel the contract, order the buyer to vacate the unit, and return it. The company also sought to retain 40% of the contract value, or Dhs413,000, as compensation. In addition, it requested Dhs288,000 for the buyer’s use of the property through April 2026, plus Dhs8,000 a month until the unit is handed over.

The purchaser did not attend the proceedings despite receiving legal notice. The company submitted the sale contract, handover certificate, debt statement and payment notice as evidence. The court granted the termination and possession orders, along with the annual use payment.