Introduction
A signed Sales and Purchase Agreement (SPA) or Form F is legally enforceable. When either party reneges on their obligations, UAE law provides clear remedies.
Common Contractual Breaches
- Buyer Defaults: Failure to secure mortgage funding within stipulated timeframes or missed installment deadlines.
- Seller Defaults: Refusal to complete transfer due to rising market prices, or failure to clear existing mortgages.
Legal Remedies Available
1. Enforcing Specific Performance: Forcing the defaulting seller to proceed with the transfer through a Dubai Court order.
2. Liquidated Damages: Enforcing the 10% security deposit forfeiture clause stipulated in standard contracts.
3. Compensatory Damages: Suing for direct financial losses caused by the counterparty's breach.
The Mandatory Legal Notice to Cure
Before initiating litigation, the non-breaching party must serve a formal legal notice granting a statutory cure period.