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developmer offering to pay

Discussion in 'Dubai property' started by easygoing, Feb 17, 2011.

  1. easygoing

    easygoing New Member

    Hi

    Need some advice. A developer in Dubai is offering me two options one is to transfer my current investment into a new one. This I cannot do due to costs.
    However after a lot of pushing they offering the following and this is where I need some serious advice
    They want me to enter into a cancellation agreement. Once I sign they will deduct 25% or 30% of the original total value of the off plan property. The balance they will pay one year after the cancelation of the contract.
    In order to get the payment I need to go to their office one year after the cancellation agreement is signed.
    They will not issue a post dated cheque
    Has anyone else been through this process.
    btw I dont mind losing 25% better to have something back than nothing
     
  2. abudubai

    abudubai New Member

    Good Lord almighty! Do not even consider such an arrangement. You won't see a penny if you do!
    A
     
  3. rkolinko

    rkolinko New Member

    In other words, the developer has no money and cannot settle today. A lot of risk involved, unless it is a big developer that has some serious projects and operations in Dubai, even then. What guarantees do you have that in a year they will still be in the same office and even in Dubai.

    Possibly try to approach RERA, i know people say they are useless but they might have had such cases.

    Good luck either way :).

    P.S. Its not UKCIG by any chance ?
     
  4. easygoing

    easygoing New Member

    thanks for the advice and no its not UKCIG.
    will contact RERA to see what they can suggest as well
     
  5. muqarabin

    muqarabin New Member

    Abudubai has given you the best advice very concisely. Dont dare enter into such an agreement. You will pretty much be signing all your money away.

    I am currently in a battle with GPD investment as well and the tricks these guys try to play, it is unreal.
     
  6. metlofts

    metlofts New Member

    That sounds like an extremely easy was to lose your money - that's if it's not already lost. It sounds like a UK Capital Investments tactic! UKCIG and any other developer would love a deal like that because it means the contract is cancelled and it'll be written in such a technical way you'd never see your money again.
     
  7. prescott

    prescott New Member

    What I understand is that the money will come from Escrow Account and since there is no cheque book therefore Developer cannot give any PDC.

    However this is risky if the Developer is not a big company. If you are satisfied that the Developer will be able to complete the project and have cash in 1 years time then you can take the risk since Developer cannot take out money from Escrow except for making payments to the contractors. Best option is to ask for cash since a bird in hand is better than two on the bush....
     
  8. georgihh

    georgihh New Member

    Eventually you will get your money back , but when nobody knows.One year can become 2 or 3 years and after 3 years your money will have halve the value they are having now. From next year will be enourmous inflation all over the world.
     
  9. East end barrow boy

    East end barrow boy New Member

    write off the money, cos they have already spent it twice over.

    barrow
     
  10. Land Sterling

    Land Sterling New Member

    I would say hold on abit longer dude, you have nothing to lose. RERA will eventually bring out laws which would protect you as some of these developers still have money in escrow accounts which they cant have access to as they have not developed.
     
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