Dubai Civil Court Orders Investor to Pay Dh359,000 Over Unpaid Installments

The Dubai Civil Court has ordered a real estate investor to pay Dh359,000 to two development companies after she defaulted on payment of three instalments linked to a property purchase, along with compensation for late payment and 5 per cent annual legal interest until full settlement.

The case was filed by two real estate companies seeking recovery of Dh359,000 in overdue installments and contractual penalties, in addition to legal interest, fees and expenses, after the investor allegedly breached the agreed payment schedule.

According to court records, the investor entered into a contract in January 2022 to purchase a residential unit valued at Dh1.2 million, plus VAT and registration fees, with payments structured in instalments. The unit was subsequently registered in her name with the Dubai Land Department in April 2022.

The companies stated that while the investor initially paid most of the amount due, she stopped payments after the ninth installment, leaving three installments unpaid. The outstanding amount totalled Dh139,993 as of November 2025, despite the completion of the project, delivery of the unit, and formal notification that it was ready for handover.

The developers said they issued a legal notice granting her time to settle the dues, but she failed to respond, prompting them to approach the court. An expert report submitted in the case supported their claim for recovery of the outstanding amounts.

The court noted that the property was fully completed before the sale contract was concluded and had been duly registered in the investor’s name.

Relying on the expert report and supporting documents, the court found that the investor had paid more than Dh1.16 million towards the property and related fees before defaulting on the tenth, eleventh and twelfth installments.

The sale agreement also included a penalty clause imposing a 3 per cent charge on overdue amounts. The expert report calculated contractual compensation of Dh219,000 for late payment, which was not disputed by the investor, who did not appear in court.

Accordingly, the court ordered her to pay Dh139,993 in overdue installments and Dh219,000 in compensation, along with 5 per cent annual interest from the date of filing the case until full payment. She was also directed to bear fees, expenses and legal costs.

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