Deals declared invalid

TDT | Manama

Email: mail@newsofbahrain.com

Two Bahraini property transactions have been annulled by the courts. One involved a developer who failed for three years to transfer a flat.

The other concerned a villa found to be built on seized land. In the first ruling, the High Civil Court cancelled the sale of a flat in Juffair.

The buyer had paid BD58,900 in full in May 2022, yet no title was transferred and the property remained unregistered in his name.

Arrangement The developer argued that the arrangement was an investment rather than a sale.

The court rejected that claim and upheld the agreement as a binding contract of sale.

The claimant, represented by lawyer Zainab Madan, submitted the signed contract, proof of payment, and a formal notice requesting reimbursement.

The court found that the developer had not disputed the documents or fulfilled the legal requirement to complete the transfer.

Interest

The company was ordered to repay the BD58,900, with interest at a rate of 3 per cent per annum from 4 May 2025 until the full amount is settled.

It must also pay BD800 in legal fees, BD1.100 for notification costs, BD1276.500 in court charges, and BD10 in enforcement costs.

The court stated that a limited liability company may not handle or invest money on behalf of others without approval from the Central Bank.

Any suggestion that the deal was an investment did not alter its legal character.

Agreement

In a separate case, the civil court nullified a BD140,000 agreement for a villa in Buri.

The buyer signed a preliminary contract in September 2021 and paid BD10,000 as part of the purchase.

The developer did not complete construction, failed to issue the title deed, and did not remove a registered seizure on the land.

The buyer had secured initial approval under the Mazaya housing scheme, but delays from the developer caused the certificate to lapse and the financing to be rejected.

Social media

During this period, the villa was advertised on social media.

The court dismissed the developer’s claim that the buyer had forfeited the payment by not securing the loan within 45 days.

It ruled that the delay lay with the seller.

The BD10,000 was deemed to be part of the purchase price, not a separate deposit.

The developer was ordered to repay BD11,000, including BD1,000 in compensation, with 1 per cent interest from the date of the lawsuit.

Legal costs

The buyer was also awarded BD300 in legal costs and reimbursement of BD2,590 in court charges. A separate claim for BD129 in property valuation fees was dismissed. The court in both cases concluded that the developers had failed to carry out their core contractual obligations.