Dubai court terminates villa contract in Bosnia, orders firm to return Dhs244,000

The Dubai Real Estate Court annulled the sale contract of a villa unit in Sarajevo, Bosnia, and ordered a real estate company to return Dhs244,000 to a woman, representing the amount she paid for the villa, with an annual interest of 5% from the date of the judicial claim until payment, in addition to obliging the company to pay fees, expenses, and legal costs.

The details of the case date back to August 2024, when a woman contracted to purchase a residential villa in a project in Sarajevo, Bosnia, for a total value of Dhs814,000 of which she paid Dhs244,000.

The company did not deliver the villa on the agreed-upon date, so the purchaser filed a lawsuit demanding the annulment of the contract due to the delay, and return the amounts she paid.

The company agreed and sent a contract cancellation form in April 2025, requesting an extension to return the amount, but it did not pay despite the expiry of the period.

During the trial, the woman presented documents including the sale contract, payment receipts, a legal notice, and electronic correspondence proving the request for annulment and the company's agreement to it, while the defendant company did not appear.

After examining the documents, the court concluded that the contractual relationship between the two parties had ended based on the correspondence which showed their agreement to terminate the contract, considering this agreement a legal annulment resulting in the termination of obligations and the restoration of the situation to what it was before the contract.

The court also affirmed that after the annulment of the contract, the amounts paid must be returned to the purchaser, especially since her payment of the claimed amount was proved, and the company did not provide any evidence of returning these funds nor complied with the legal regulations governing its activities within the country, which supported the woman's right to recover what she paid.

Regarding the interest, the court clarified that it is considered compensation for the delay in paying the due amount, and ruled for an annual interest of 5% from the date of the claim until full payment.