Recovered a Villa Deposit Through the Dubai Courts

Situation

The client bought a villa off-plan and paid around 40% of the price. The handover date was pushed back twice, more than 20 months in total. When asked to refund the money, the developer refused, citing a force-majeure clause.

What we did

1. SPA and project analysis. We checked the project's status with the Dubai Land Department (DLD) and the movement on the escrow account. We established that the actual construction progress was significantly lower than the developer had reported.
2. Claim. We sent a demand with a calculation of the amount paid and interest, pointing out the discrepancy between actual progress and the reported figures.
3. Complaint to RERA. We filed a complaint with the regulator. The developer entered negotiations but offered only a transfer to another project.
4. Lawsuit. We filed with the Dubai courts seeking termination and a refund. The court-appointed expert confirmed the discrepancy in progress. The court ruled in the client's favour.

Result

Key takeaway from this case

A force-majeure clause in a developer's contract is not universal: if actual progress diverges from what is reported, reliance on external circumstances loses its force. Verifying the progress percentage through the registry is key evidence in disputes like this.