Real Estate Company Ordered to Refund 850,000 QAR by Qatar Court
Real Estate Company Ordered to Refund 850,000 QAR by Qatar Court
The Court of Cassation upheld a Court of Appeal ruling that terminated a contract between the plaintiff and a real estate company. The court ordered the company to refund QAR 845,000 to the plaintiff and compensate her with an additional QAR 50,000 for damages.
The Court of Appeal had previously ruled to terminate the contract, obliging the defendant company to return the amounts paid by the plaintiff and to compensate her.
Case Details
The case began when the plaintiff purchased a residential unit in the Lusail area under a contract with the real estate company for QAR 2,360,000. Payment was agreed to be made in installments as per the contract, with the expected completion and handover date set for October 2022.
The plaintiff paid QAR 845,000 in installments prior to the expected handover. The remaining balance was to be paid after the unit’s completion and handover notification, as stated in the contract. However, the company failed to complete and deliver the unit to the plaintiff, despite repeated requests and notifications from her.
Legal Action
The plaintiff’s attorney, Advocate Zahra Al-Ghanim, filed a lawsuit against the company, requesting the court to:
- Terminate the contract.
- Order the company to refund the QAR 845,000 already paid.
- Compensate the plaintiff with QAR 120,000 for losses and missed opportunities.
The plaintiff’s attorney submitted several documents, including the sale contract, receipts for payments made to the company, and correspondence from the plaintiff demanding the unit’s completion and delivery.
The court initially issued a preliminary ruling to appoint a real estate engineering expert to investigate the matter. The expert found that the residential unit was completed and ready for handover, and the company had notified the plaintiff via an email dated December 8, 2023. The expert noted a two-month delay in delivery and determined that the plaintiff was entitled to a penalty of up to 4% per annum of the total purchase price for the delay.
The court subsequently ruled that the company must pay the plaintiff QAR 5,633.80 as a delay penalty.
Appeal Process
The plaintiff was dissatisfied with this decision and appealed, requesting the appointment of a qualified expert to measure the unit’s area and compare it with the contract specifications. She also sought termination of the contract. Advocate Zahra Al-Ghanim argued that the initial ruling was flawed, as the court relied entirely on the expert’s report. She contended that the email sent by the company was not a formal handover notice but merely indicated future communication.
The Court of Appeal ruled in favor of the plaintiff, terminating the contract and ordering the company to refund QAR 845,000 and pay QAR 50,000 in compensation for all damages.
Final Ruling
The defendant company challenged the appeal court’s decision before the Court of Cassation. However, the Court of Cassation upheld the ruling, affirming the termination of the contract and the financial obligations imposed on the company.
