UAE courts can hear overseas property disputes

UAE courts are authorized to hear real estate disputes filed against Emiratis even if the property is outside the UAE, according to a new principle established by the Dubai Court of Cassation.

The court also emphasized that the failure of the seller to deliver the property as agreed in the contract entitles the buyer to not pay the rest of the price.

The court established the principles while accepting the complaint of a seller of property against a UAE citizen, although the sold property is located in Lebanon.

The court also ruled to accept the challenge of the Emirati from refraining to pay the remaining price of the sold property following the seller's failure to deliver the property as agreed (handing over the property ready for use).

Initially, the salesperson had filed a complaint against the Emirati buyer (appellant) before the Dubai Court of Real Estate, requesting for a dissolution of the contract between them.

The seller of the property (Lebanese) claimed that she sold the building in Lebanon to the Emirati for $900,000. And that the buyer had paid $275,000 and promised to pay the rest upon delivery of the property.

However, at the time of handing over, she claimed that the Emirati declined to receive the property and also refused to pay the remaining amount, which is over $200,000.

Meanwhile, the Emirati’s lawyer requested the court not to accept the case of the plaintiff because the property was located outside the UAE.

But the Court of First Instance rejected the request and accepted the case. The Emirati did not accept the ruling and challenged it before the Court of Appeal, which upheld the verdict.

The Emirati didn’t accept that ruling either and appealed before the Court of Cassation, which issued the above principles.

The Court of Cassation accepted the case in accordance with Article 20 of Code of Civil Procedure, which stipulates the jurisdiction of courts of UAE to hear cases filed against Emiratis. And also take up cases of disputed property even if they are located outside the UAE.

The court also accepted the appeal by the Emirati because paying the remaining amount was to be as per the contract between the parties involved – and in this case the delivery was to be made ready for housing, which the saleswoman (plaintiff) had provided.

 

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