D1 Tower Dubai Creek

Discussion in 'Dubai property' started by Datum1m, Nov 17, 2008.

  1. Datum1m

    Datum1m New Member

    I am looking for investors who have bought from Emirates Sunland D1 Tower, I have bought a Unit in D1, I am being asked to make my next payment based on payment schedule, which will mean I will have paid 60%, but the building as only just started coming out of the ground and is nowhere near 60% complete. I would like any investors who have bought into D1 to come forward and let me have their thoughts. I personally would like to see the payment schedule based on work completed and certified as been completed by an independent Architect.

    Regards

    Nigel
     
  2. kamadenu

    kamadenu New Member

    I have a property in Nur (same developer) in culture village and have paid 20%. My next payment is due and the project has not even broken ground. I also dont have a contract. Believe even D1 investors have not been given a contract. Under such circumstances, we dont know
    when is the delivery
    what will be the contract terms which we will be forced to sign because we have already paid so much
    what abt the law 13
    I am willing to join the group.......of nur and d1 investors
     
  3. Datum1m

    Datum1m New Member



    Thank you for the response to my post, I looked at nur when I bought into D1, so I know the development.

    It would seem there are no Emirates Sunland investors looking at the Forum right now, just me and you.

    I have written to the Developer asking him to change my payment schedule to one that is construction based, so I will let you know if and what response I get.

    I gained some information yesterday that gave me great cause for concern; it would seem Developers are allowed to draw as much as 20% against a Escrow Account without even appointing a contractor and this would be to cover things like Sales & Marketing and land acquisition. So under Law 13 we the investor will be buying the land for the Developer to resell to new investors from the 30% we have had to give him, for not been able to meet the payment schedule.

    Regards

    Nigel
     
  4. TommyC

    TommyC New Member

    I would definately recommend joining the existing initiative led by Mohammed which has already gained a lot of traction! If you haven't already done so, send an email to: investorslaw13 at hotmail.com with some brief details on money invested in which projects, your contact details and a comment about the latest interpretation. There will shortly be a petition handed over to the land department and we need as many investors as possible to back it up. Overall there seems to be a big need to come together, both in individual projects and in the community as a whole.
     
  5. kamadenu

    kamadenu New Member

    Thanks, I have joined the group already. The stories that come out every day get more and more scary.........
     
  6. TommyC

    TommyC New Member

    Know what you mean, the current slowdown experienced have made a lot of things come to the surface; like the abuse of escrow accounts, developer tactics and even master-developer behaviour. Let's see what we can do about it! :cool:
     
  7. Peter39

    Peter39 New Member

    I am in the same position and whilst I didn't expect the payment schedule to exactly follow the construction progress, it now seems to be a long way adrift.

    I have been told completion date for D1 is last qtr 2010, so assuming work started in Dec 07 then by March 09 we will have paid 70% but the construction timetable will only be 42% - a long way behind!

    Have you been in contact with the agent who sold it to you or Emirates Sunland to get their comment?

    Regards

    Peter
     
  8. kamadenu

    kamadenu New Member

    the agent who sold you the property has probably run away............(joking) the developer will never agree that he is late.......so what can you do
     
  9. Datum1m

    Datum1m New Member

    I have been speaking to an Agent today who in the past as sold a lot of Sunland Apartments. He tells me they will be shelving the Atrium project and will probably look at shelving Nur, but continue with D1. I asked if the would be letting investors have their money back, but he could not comment. I have a few concerns regarding the D1 project I can afford to continue with my payments, but how many more investors can or will. Does the Developer have the liquidity to continue if say 50% default and what will happen to the area around D1, if nothing else gets built, how will the affect the value of our investment?

    Regards

    Nigel
     
  10. Peter39

    Peter39 New Member

    Nigel

    Can we get any confirmation regarding the (possible) shelving of the Atrium/NUR projects?

    Given that Sunland only recently sent out a newsletter which was all upbeat, I am surprised that an agent would be in a position to know about Sunland's possible plans which clearly contradict what they are saying to their investors - who would have told the agent?

    However, once we are sure of the status, we can address the other issues re money back and future of the D1 and PV projects directly with Sunland.

    Perhaps one of the forum members who has bought into the NUR or Atrium can make some enquiries?

    Regards

    Peter
     
  11. Peter39

    Peter39 New Member

    I have had some legal input re Law 13:

    They passed Law No 13 stating that developers could only retain 30% of payments actually made. They had not realised there would be mass defaults so on Sunday the Land Department issued a 'clarification' confirming that Law 13 does not relate to any agreement signed pre 31st August 2008 and that the 30% retention actually relates to the full value of the contract and above that they can retain a further 30% of all payments made. On a 10 million contract, where 6 million has been paid this would result in a default of 4.8 million. This is worse than the pre 31/8 position in most cases. Clearly it was originally intended to assist investors but with the crunch biting hard it is now very much in favour of developers.

    Peter
     
  12. TommyC

    TommyC New Member

    From what I've heard and the impression I got with my own developer (selling as much as they can while, after serious questioning, implying to their customers that they might cancel eventually) this seems like valid business to them. They basically have nothing to lose since they can get some fresh money into their unfeasible projects and after doing their standard-delay-trick they will only in worst case, if they aren't lucky enough to have all investors default, have to pay back their money. But more likely a certiain percentage will default making them gain some easy cash since there is no protection for the investors.

    This kind of behaviour makes it even more important for us to come together to change the regulations currently approving this kind of behaviour. Developers should pick their investors much more carefully instead of dragging in people in and convincing them to part with their money on shiny, unwritten, promises, because they would know that if they default that will mean at least some loss. Currently, the developers are free to do whatever.
     
  13. Datum1m

    Datum1m New Member

    Peter,

    Where in the world are you based, my Dubai mobile is 050 279 2862, we are 4hrs in front of the UK. I can tell you more of the record.

    Regards

    Nigel
     
  14. Peter39

    Peter39 New Member

    Nigel

    I will call you tomorrow at 07:30am my time if that is OK?

    Regards

    Peter
     
  15. Datum1m

    Datum1m New Member

    7.30am UK time? if so ok
     
  16. Peter39

    Peter39 New Member

    Yes in 14.5 hour's time

    Regards

    Peter
     
  17. kamadenu

    kamadenu New Member

    not sure how may of you have already checked but nur is not even inthe list of rera approved projects..............
     
  18. mohammedno11

    mohammedno11 New Member

    We should all fight thet the law stays at it was published.

    No matter when you signed you contract, you should get you money paid back
    less 30%.

    Any matured developer shall approach his clients and work out feasible solutions to save his project.

    No one shall be blackmailed or forced by cancellation notices to pay more than 10% to 20% if the project didnt started so far !

    Our Group Dubai Property Investors is preparing substantial action against this new interpretation and these developers.

    Please join our group through the following email: investorslaw13 @ hotmail . com

    Regards
     
  19. Datum1m

    Datum1m New Member

    I went to see Sunland yesterday, they did say they were going to start work on Nur, to try and give their investors the confidence to pay their instalments. So obviously they have a problem with default payments on Nur, but the other reason they could be starting work is so they can claim all their purchases down payments without RERA stopping them. I know I'm being cynical, but it seems to be common knowledge out here that RERA will not cancel investors contracts where Developers have not started on site. I am going to go back and see them after Eid and one of my questions to them will be, why are you starting a project when you know you haven't got your full finances in place, because your customers are defaulting on their payment plans. It just does not seem make sense to me, why any Developer would start construction without making sure he had the full support of all his purchases, because believe me when I say, none of these Developers have any finance in place to build our Investments without our full financial support. So I feel we have the right to ask our Developers when does a project become none viable for them to build, is it 10%, 20% or 30% defaults. We are risking all our future payments not knowing how they are going to bridge the finance gap felt by their defaulting clients.
     
  20. Alvisepas

    Alvisepas New Member

    I'm an Investor of the D1 Tower. I bought a Studio in December 2007. I made all the payments on time and paid 50% till now. My next due payment is 10% from original price due at the mid of this month.
    The problem is: I still have to received my original contract. I do have only the reservation contract, and contacting Sunland in Dubai, I had the response that the reservation contract has the same power of the original, so meaning that I have to complete the payment on time. And they will provide me the Original contract as soon as possible.

    Now, Does it seem correct ??? It is passed one year and I still have to receive my contract.!! Does anyone has the same problem.

    -Alvi
     
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