Dubai Court Voids Bosnia Villa Deal, Orders Refund of Dh244,000 with Interest

The Dubai Real Estate Court has annulled a villa sale agreement in Sarajevo, Bosnia, and directed a real estate company to refund Dh244,000 to a woman, representing the amount she had paid towards the property. The court also ordered the company to pay 5 per cent annual interest from the date the case was filed until full settlement, along with fees, expenses and legal costs.

 

The dispute dates back to August 2024, when the woman entered into a contract to purchase a residential villa in a Sarajevo-based project valued at Dh814,000. She had paid Dh244,000 as part of the agreement.

 

However, the developer failed to deliver the villa within the agreed timeframe, prompting the buyer to file a lawsuit seeking termination of the contract and recovery of her payments.

 

In April 2025, the company acknowledged the cancellation and issued a contract termination form, requesting additional time to process the refund. Despite the extension, no payment was made after the deadline expired.

 

During court proceedings, the claimant submitted key documents, including the sale agreement, payment receipts, legal notice and electronic correspondence confirming both her request to cancel and the company’s acceptance. The defendant company failed to appear before the court.

 

Upon reviewing the evidence, the court determined that the contractual relationship had effectively ended through mutual agreement, as reflected in the correspondence. It held that such agreement constituted a valid legal annulment, thereby extinguishing obligations and restoring both parties to their pre-contract position.

 

The court further ruled that the company was obligated to return the amount paid, particularly as the claimant had proven payment and the company neither demonstrated repayment nor complied with applicable legal requirements governing its operations.

 

On the issue of interest, the court stated that it serves as compensation for delayed payment and awarded 5 per cent annual interest from the date of filing the claim until full repayment is made.