The Investment and Commerce Court has ordered a real estate development company to refund more than QR1.2mn to a client, a Qatari woman, and terminate a residential property contract after failing to meet its contractual obligations.
The court mandated the company to return QR1,009,261.98 paid by the plaintiff for a housing unit, in addition to QR200,000 in compensation for damages incurred, bringing the total awarded amount to around QR1.209mn.
The ruling included the cancellation of the sales agreement due to the developer’s failure to deliver the property within the agreed timeframe.
According to court documents, the plaintiff, represented by her legal counsel, filed a lawsuit seeking termination of the purchase contract, a full refund of payments made, and financial compensation.
The dispute arose after the developer offered a number of residential units for sale, one of which the plaintiff agreed to purchase.
The unit, measuring 110.10sq m, was scheduled for completion and delivery by December 2021.
Under the terms of the contract, the company was granted a 12-month extension period if needed.
Accordingly, the plaintiff fulfilled her financial obligations, making installment payments totaling over QR1mn.
However, the company failed to deliver the unit within the agreed deadline or during the extension period, prompting the plaintiff to stop making further payments, invoking the legal principle of reciprocal obligations outlined in civil law.
Eventually, the court found that the developer’s continued delay and failure to deliver the property caused direct financial harm to the plaintiff, including the loss of potential use or investment of the unit.
This justified both the contract termination and the compensation awarded.
Following the ruling of the court of first instance, the company filed an appeal.
However, the Court of Appeal upheld the original judgment in full, reaffirming the developer’s obligation to refund the amounts paid and compensate the plaintiff.