Dubai, UAE – A UAE-based couple has successfully reclaimed Dh266,352 in down payments after a 14-year legal battle over an off-plan property that was not delivered on time.
A Long-Awaited Resolution
In 2008, UAE citizen BM and his wife purchased an off-plan property in Al Qudra’s Remraam development, making installment payments towards a home in Cluster C. Initially, the developer provided construction updates with photos, but BM later discovered that no work had begun on his unit.
Upon visiting the site, he realized the developer had not even laid the foundation for Cluster C. “It seems they were sending me photos from Clusters A and B,” he explained.
Payments Stopped, Property Confiscated
Recognizing the lack of progress, BM halted further payments. However, the developer later informed him that he had forfeited both the house and his payments for failing to meet the installment deadlines.
“They claimed they had issued a notice, but I never received or signed anything,” BM said. Personal circumstances delayed his follow-up, and by the time he pursued the matter two years later, he was told he had lost everything.
Legal Action and Court Rulings
In 2021, BM sought legal counsel from lawyer Ali Al Abbadi, who advised him that buyers have the right to stop payments if developers fail to fulfill their contractual obligations. A lawsuit was subsequently filed, leading to a lengthy legal battle:
- First ruling: The Dubai First Instance Court ruled in BM’s favor.
- Appeal: The developer challenged the verdict, but the Appeals Court upheld the decision.
- Cassation Court review: The case was sent back to the Appeals Court for further investigation.
- Final verdict: A judicial expert report confirmed that the developer failed to meet contractual obligations. Although the property was supposed to be completed by June 2010, construction was only 42.8% finished by May 2011.
Court Orders Developer to Refund Payments
The Dubai Cassation Court upheld the lower court’s ruling, affirming that the company had no right to confiscate the property or payments, even if a notice had been issued. The installment amounts were subsequently returned through Dubai’s executive court.
“The company eventually paid to avoid an asset freeze request,” said lawyer Al Abbadi, who oversaw the execution of the ruling.
The property was finally completed in May 2023, closing a 14-year chapter for the couple in their quest for justice.
