Bahrain Court Upholds BD3,000 Compensation Ruling Over 18-Month Property Deed Delay

Bahrain’s High Court of Appeal has upheld a lower court ruling ordering a real estate company to pay BD3,000 in compensation to a citizen after delaying the delivery of a property title deed for 18 months.

The court rejected the company’s appeal, confirming that it had breached its contractual obligations by failing to transfer ownership within the agreed timeframe. The original sales contract stipulated that the title deed should be delivered within three months, a condition the company failed to meet.

Details of the dispute-

According to the case, the plaintiff purchased a residential plot valued at BD50,266.160, with the company committing to complete the ownership transfer within the contractual deadline. However, the deed was not delivered for a year and a half.

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

Material and moral damages confirmed-

As a result of the prolonged delay, the plaintiff suffered financial losses after being forced to sell the property below its actual market value. The court also recognised moral damages, noting that the buyer was prevented from disposing of or benefiting from the property throughout the delay period.

In its judgment, the High Court of Appeal affirmed that the contractual relationship clearly obligated the company to deliver the title deed and complete the ownership transfer within the specified timeframe. The company’s failure to do so justified the award of compensation for both material and moral harm.

The ruling reinforces the judiciary’s stance on protecting buyers’ rights and holding developers accountable for contractual breaches.