How a ‘Non-Existent Contract’ Became Binding Overnight
How a ‘Non-Existent Contract’ Became Binding Overnight
One of the most serious concerns in my case is the way facts were presented to the Dubai Land Department (DLD) regarding the existence of a contract.
According to the official response from DLD, the developer stated that the amounts paid are subject to an agreement and therefore not refundable.
This statement is critical.
Because in my case, no binding contract was ever signed.
What Was Communicated to DLD
In the DLD response, it is stated:
“The company was contacted… and indicated that the amounts paid are according to an agreement and are not refundable.”
This creates the impression that:
- A signed agreement exists
- The buyer accepted binding terms
- The funds are contractually non-refundable
The Reality of the Situation
However, the actual situation is different:
- No Sales and Purchase Agreement (SPA) was signed
- No final binding contract was concluded
- The payment was made during a pre-contractual phase
- Terms were presented only after payment
This means that the fundamental basis of the developer’s statement — the existence of a binding agreement — is disputed.
Why This Matters
The existence or non-existence of a contract is not a small detail.
It is the foundation of the entire case.
If a binding agreement exists, then obligations may apply.
If no agreement exists, then the legal basis for retaining funds becomes questionable.
Presenting the situation as if a binding contract exists, while this is not clearly the case, creates a serious discrepancy.
The Impact on the Buyer
When information provided to authorities does not fully reflect the actual situation, it places the buyer at a disadvantage.
It may:
- Influence how the complaint is assessed
- Delay resolution
- Create confusion about legal rights
- Shift the burden unfairly onto the buyer
The Importance of Accuracy
In any dispute, especially one involving financial matters, accuracy and transparency are essential.
Authorities rely on the information provided by both parties.
If that information is incomplete or presented in a way that does not fully reflect the facts, it can affect the outcome.
Final Thought
This situation highlights the importance of documenting everything and clearly establishing what has — and has not — been agreed.
The existence of a contract should never be assumed.
It must be clearly demonstrated.
For buyers, the key lesson is simple:
Always ensure that your legal position is fully documented before transferring funds — because once a dispute arises, clarity becomes your strongest protection.
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