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Dubai investor loses Dh20 million property refund case
The case involved a total deal worth Dh38.3 million, and the investor had already paid over Dh23.5 million
- PUBLISHED: Wed 6 Aug 2025, 9:52 AM
A property investor has lost a legal battle against a real estate developer for a claim of more than Dh20 million for multiple apartments in Al Barsha South.
The case involved a total deal worth Dh38.3 million, and the investor had already paid over Dh23.5 million, including Dh200,000 in cash, to the developer. However, the investor later demanded refund of Dh20.5 million, plus Dh1 million in compensation and 12 per cent interest.
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The dispute was first taken to the Dubai Real Estate Court, where the developer won. The ruling was upheld again in the appeal court and the Court of Cassation (Supreme Court).
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According to the developer’s legal consultant, Dr Hassan Elhais from Awatif Mohammad Shoqi Advocates and Legal Consultancy, the Supreme Court confirmed that even if the money was not received in the escrow account that would not be enough to claim refund of the money especially after the units were already delivered to the investor who subsequently resold them.
Dr Elhais said this was a key issue in the case, the court confirmed that no harm has been proven due to not receiving the money in the escrow account, especially as the investor asked for refund of the money without even asking for termination of the sales and purchase agreement (SPA).
As per the court judgement, the investor could not prove his argument that the prices of the units were affected on resale due to not receiving the amounts in the escrow at the time of purchase, especially as the developer did not breach the SPA with regards to the delivery of the units.
Moreover, the investor argued that despite the developer receiving the purchase price, the investor did not receive receipts of payment for part of the payment.
However, this argument was rejected by the court as the developer confirmed receiving the money.
SM Ayaz Zakir is a Senior Correspondent with a flair for extraordinary stories. His playground? Every corner of the UAE. He often ventures into remote corners of the country to capture compelling news and human interest stories.