Real estate firm to pay BD322,000 for breach of contract

TDT | Manama

Email: mail@newsofbahrain.com

The High Civil Court has ordered a Bahraini real estate company to pay a total of BD322,000 to two individuals who purchased residential units from one of the company’s projects.

The court found that the company failed to fulfil its agreement to lease the units back to the buyers for a fee, which was part of the initial contract.

Additionally, the company did not complete the transfer of the units to the buyers.

Principal amount

The court’s ruling included the payment of the principal amount along with legal interest at a rate of 2% annually from the date of the legal claim until full settlement, as well as covering the legal expenses and attorney fees.

Lawyer Rashid Al Bin Ali, representing the plaintiffs, explained that his clients had entered into a purchase agreement for the real estate units based on the company’s reputation in the market.

The sales department had subsequently encouraged them to lease the units back to the company, promising rental returns between BD2,500 and BD3,000.

Financial obligations

However, upon receiving the rental cheques, it became evident that the company’s bank account did not have sufficient funds to meet its financial obligations. Moreover, the real estate company failed to register the units in the names of their new owners or refund the purchase price.