*** Court Annuls Property Sale, Orders Refund of BD 40,000 | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Court Annuls Property Sale, Orders Refund of BD 40,000

TDT | Manama                                                      

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The High Court has ruled to annul a property sale in a Bahraini city and ordered the four defendants to jointly refund the purchase price of BD 40,000 to the plaintiff.  The court also ordered the defendants to pay court costs and BD 200 in legal fees.

According to the plaintiff's lawyer, Mohammed Al Mahdi, the four defendants owned the property in question, having received the title deed from the Ministry of Housing and Urban Planning on April 10, 2011.  The plaintiff and defendants agreed on the sale of the property on December 12, 2012, for BD 40,000, which was paid in full at the time of the agreement.

Al Mahdi explained that the plaintiff subsequently began construction on the land, erecting a fence and gate, and completing part of the building.  The plaintiff then requested that the defendants finalise the property registration process to allow for further construction. However, the second defendant prevented this, claiming a lack of necessary permits and inability to obtain them, a claim corroborated by witnesses.

Lawyer Al Mahdi contacted the Ministry of Housing and Urban Planning to inquire about the property's registration number, the date of ownership transfer to the four defendants, and the date of obtaining the right-to-dispose permit.

The Ministry responded that permits to dispose of properties allocated through their housing schemes cannot be granted without issuing a property ownership document.  As the property was considered a vacant residential plot, it stated that any transfer of ownership requires prior written permission from the grantor and that ten years must have passed since the issuance of the title deed.  The Ministry confirmed that no such permission had been issued for the property in question.

Subsequently, the plaintiff's lawyer submitted a memorandum via the electronic system, withdrawing the original claim for the validity of the sale contract, pending the possibility of registering the property. 
 
The plaintiff amended their request, seeking the dismissal of the fifth defendant without costs, while maintaining their alternative claim for a refund of the BD 40,000.  The court ultimately sided with the plaintiff's alternative claim.