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BACKING OUT of 10% Deposit on REDUCED OP

Discussion in 'Dubai property' started by desert dream, Feb 13, 2009.

  1. desert dream

    desert dream New Member

    I have a 2 BR residential for which the OP was around apprx 8 Mill AED.
    I paid a downpayment of 10% or approx AED 800K.
    Now, the developer reduced the price by about 45%, so the OP is 4.4 Mill AED.
    Subsequently, the property is now around 45% paid for...i.e. my 10% is now 45% paid.

    If I back out now..the reservation form says I lose 10% of total cost of unit paid as booking amount..
    This means as I can walk away losing 10% of 4.4.
    Is this correct?
    I have a resevation form (no SPA yet).

    Guys, please advise me..the per sq ft price is 2500 net in Maritime City...
    But with prices falling i would rather lose 440,000 dirhams than keep funding up to 4.4 mil..and the developer reducing the OP means my deposit has gone from 10 to 45% paid..theres no way they can keep all 45..??

  2. PropGuy

    PropGuy New Member

    they can keep max 34.5% out of 45% according to new rera rules.
  3. georgihh

    georgihh New Member

    Something is wrong with your calculation.
    I think 800k is around 18% from 4.4 million.
    Please confirm
  4. memo123

    memo123 Member

    Please do the math again

    if the price is reduced by 45% then the price now is 5.2 mio and you paid .8 mio that would be 15.38% of the new price , so you would still owe them 14.6% to make 30% of the total price where then you have to top up this amount and pay them more to make 1.56 mio . Yet if it was as per original law 30% of what you paid then it would pay 240,000 dirham . lets wait and see where they have reached is it 30% of the price , or of what you have paid . Added to this what is your reservation papers say ? and did you buy before or after 31 August .
    What A MESS!
  5. PropGuy

    PropGuy New Member

    yup it is 18%.
  6. memo123

    memo123 Member

    65% of 8 mio is 5.2 mio not 4.4 mio

    15.38% only is what he paid
  7. desert dream

    desert dream New Member

    no ive paid 45% i have the paperwork in front of me..anyways the reduced price is little mixed up..lets forget it
    at least the price is 2500 sq ft on maritime..the next highest is 3000+
  8. financier888

    financier888 New Member

    In regard to your refund - it may depend on whether or not the developer has listed / registered your unit with RERA - and if he did- it may have been the higher (original price you paid BEFORE the discount) - if that is the case, being that RERA has to approve the cancellation of your contract - the cancellation penalty may be based on the original price.. you need to check if the developer registered your unit...
  9. MMSM

    MMSM New Member

    which project and who is the developer?
  10. desert dream

    desert dream New Member

    ETA - Verde Residential
  11. aligoldy

    aligoldy New Member

    I have also bought in Maritime City in the Alfaraa project, Bellato residence.
    I have paid 7.5% on a reservation agreement and have refused to pay the next installment of 7.5%. They have supposedly sent my case to RERA however I have heard nothing from RERA.
    What has happened withe the VERDE project?
    Alfaraa are telling us we will lose our money.
    I have approached the UK government, they are going to approach the FCO. Article 11 law 13 should protect us and we should be getting 70% of our money back.
    Have any of you joined the forum which specifically relates to article 11 law 13?
  12. memo123

    memo123 Member

    Who is FCO?

    you have indicated that you approached the UK government and they will contact the FCO.
    which department in your government did you approach ? for I was thinking of going to my government for protection and support , but who is the FCO you are referring to?
  13. aligoldy

    aligoldy New Member

    I have drafted a letter to Gordon Brown and he replied and said he is reffering to FCO.

    Would you like a copy so that you can send a fax?

    Have you joined the forum for investors against article 11 law 13?
  14. desert dream

    desert dream New Member

    Maritime City should be canned..I heard ETA is going ahead with both towers..
  15. aligoldy

    aligoldy New Member

    Are you sure they are not canning he projects?

    Have you requested access to their escrow and the NOC for construction and registration of project?
  16. desert dream

    desert dream New Member

    I was in their office yesterday and they said both towers are going ahead only they will ask for the next payment in apr 10...
    they reduced 2 bed is 4.4 mil and my friend who bought inthe office tower his OP is being reduced 40% as well..
    but thats not enough...i paid 20% so im stuck but my friend is not paying more hes forfeiting ..
    the rest of maritime is a disaster....sold 4000 + Gross area with 3rd rate developers such as Kensington, Damac, Al Faraa..
    imho ETA is still the cheapest and best on maritime
  17. aligoldy

    aligoldy New Member

    I bought alfaraa at around AED2,700 per sqft; do you know if the project is going ahead?
  18. desert dream

    desert dream New Member

    No Idea..did u buy Gross or Net Area?
    I dont think its worth funding anymore if u have paid only 10%..
  19. aligoldy

    aligoldy New Member

    You dont want to pay AEd2,500; it is too much money I feel.
  20. shazy

    shazy New Member

    FCO is the Foreign & Commonwealth Office not sure what they can do about it though I think we need a petition signed by all investors no matter who the developer is from all investors asking for more clarity and updates here in the UK and a department of RERA here in the UAE Embassy
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