Firm Ordered to Pay BD 3,000 for 18-Month Property Deed Delay

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Manama: The High Court of Appeal has rejected a company’s appeal and upheld a lower court ruling ordering it to pay BD3,000 in compensation to a citizen for delaying the delivery of a property title deed.

The court found that the company breached its contractual obligations by failing to hand over the title deed for a year and a half, despite the sales contract stipulating a delivery period of just three months. The ruling confirmed the plaintiff’s right to both material and moral damages.

Lawyer Sarah Ali, representing the plaintiff, said her client had purchased a residential plot for BD50,266.160, with the company committed to transferring ownership within three months of signing the contract. However, the company failed to meet this deadline.

She explained that the company later issued a written declaration pledging to compensate the buyer with an annual rate of 5 per cent on the amount paid for each day of delay. Despite this commitment, the company neither delivered the title deed on time nor paid the agreed compensation.

As a result of the prolonged delay, the plaintiff suffered financial losses after being forced to sell the property below its actual market value. She also endured moral damages after being prevented from disposing of or benefiting from the property during the delay period.

In its judgment, the court stated that the contractual relationship clearly obligated the company to deliver the title deed and complete the ownership transfer within the agreed timeframe, which it failed to do.