Introduction to the Case
A real estate investor has lost a legal fight against a real estate developer due to a claim of over 20 million DH for several apartments in Al Barsha South. The case involved an overall contract worth 38.3 million DH, with the investor having already paid over 23.5 million DH, including 200,000 DH in cash.
Details of the Dispute
The investor later requested a reimbursement of 20.5 million DH, plus compensation and 12 percent interest. The dispute was initially brought before the Dubai real estate court, where the developer emerged victorious. This judgment was subsequently confirmed by the Court of Appeal and the Court of Cassation (Supreme Court).
Court Ruling and Reasoning
According to the developer’s legal advisor, the Supreme Court confirmed that even if the money had not been received into the trust account, it was not sufficient grounds to claim the money, especially after the units were handed over to the investor, who later sold them again. The court ruled that no damage was proven because the investor did not receive the trust account, especially since the investor asked for reimbursement of the money without terminating the sales and purchase contract (SPA).
Argument and Counterargument
The investor argued that the prices of the units were influenced in resale because the amounts were not preserved at the time of purchase, especially since the developer had not violated the SPA in terms of delivery of the units. However, this argument was rejected by the court because the developer confirmed that they had received the money. The investor also claimed that despite the maintenance of the developer, they did not receive the purchase price for part of the payment, but this argument was also rejected.
Outcome of the Case
The court’s decision ultimately favored the developer, with the investor’s claims for reimbursement and compensation being denied. The case highlights the importance of carefully reviewing and understanding the terms of a sales and purchase contract, as well as the need for parties to fulfill their obligations in accordance with the agreement.
