Failure to meet construction deadlines cannot remain without consequences.
By its arbitral award dated November 4, 2026, the Financial Arbitration Court of the Union of Banks of Armenia fully upheld the claim brought by LSA Law Firm attorney Tatevik Malkhasyan against DEFANS HOUSING INVEST CJSC.
Under the arbitral award, the developer was ordered to pay the purchasers more than AMD 4.1 million in contractual penalties, as well as AMD 36,556.55 for each day of delay until the actual fulfillment of the obligation, subject to the limitations prescribed by law.
⏱️ Notably, the arbitration proceedings lasted only 2 weeks.
This case demonstrates one of the key advantages of arbitration: the possibility of resolving disputes quickly and efficiently.
For comparison, under Armenian legislation, civil proceedings before the courts of general jurisdiction of first instance are generally subject to a time limit of up to 6 months, which, under certain conditions, may be extended twice, each time by up to 3 months.
In contrast, in this case, an arbitral award protecting the purchasers’ violated rights was rendered within just 21 days.
Arbitration may also provide procedural flexibility, more predictable case management, and, in certain circumstances, a reduction in the overall costs of dispute resolution.
🏠 OUR ADVICE TO APARTMENT BUYERS PURCHASING FROM REAL ESTATE DEVELOPERS
When entering into an apartment purchase agreement with a developer, we recommend considering the inclusion of an arbitration agreement (arbitration clause) in the contract.
Such an agreement allows the parties to stipulate that disputes arising from breaches of contractual obligations, including delays in handing over apartments, claims for contractual penalties, and other monetary claims, will be resolved through arbitration, to the extent permitted by law.
This may help avoid lengthy court proceedings and enable parties to obtain legal remedies within a shorter timeframe.
LSA Law Firm continues to protect the rights of purchasers affected by real estate developers’ failure to fulfill their contractual obligations.
Your violated rights deserve legal protection.
