VADIVM.

Type of refusal

Non-enforcement in foreign property

With property, refusal to perform rarely means the seller vanishes. It usually means a foreign judgment orders payment or transfer, and the registry holding title will not act on it, because that registry follows local land law, not the court that decided the case. This sits within non-enforcement refusals generally, and specifically within foreign real estate as an asset class.

The contractual mechanism used

The refusal is rarely written into the deed itself. Investors typically hold an interest through a special purpose vehicle that owns the property, and the agreement they signed is a shareholder loan or subscription contract, not a conveyance. When the SPV or its director stops performing, the judgment obtained is against a person or a company, not against the land. The property title stays untouched, because the deed and the debt were never the same instrument. This split is what turns a payment dispute into an enforcement problem. Cross-border recognition and enforcement becomes the only route once the underlying claim is already decided, while refund and delivery claims covers the earlier stage, before any judgment exists.

The document that decides the framing

What a court will enforce depends on how the claim is framed on paper. A contractual claim against an SPV or its director for breach of a subscription agreement travels as a personal money judgment. A claim asserting a right to the property itself, a real right, is treated differently in most systems, because courts are reluctant to let a foreign judgment reorder title held under local land law. That distinction sits in the underlying instrument and the pleadings, not in what an investor believed they were buying. Jurisdictions such as the UAE and Cyprus apply their own rules to that distinction, and the rules do not converge.

The cross-border question

Enforcement of a judgment on a property dispute goes wherever the money or the title actually sits, not wherever the contract was signed. If the SPV's assets, or the director's other holdings, are in the United States, the judgment first has to cross into that system, following routes such as Luxembourg to the US or Malta to the US, each carrying its own conditions. The property itself, if it stays registered abroad, may still need a separate local proceeding regardless of what the first judgment says. Which authority has jurisdiction over that proceeding is determined by the applicable procedural rules, and depends on where the title sits, not on where the investor is based. The firm does not charge a success fee for this work, and its registration can be checked against the public register.

Nour Haddad