Do I have to register my off plan property with RERA too?

[memo123]

Dear All I might sound stupid here , But please humor me .
I know that the developer is registered with RERA , but I just got back from Dubai , and every one i met told me that in order to protect my self from the developer himself with the 30/70 rule , I have to go and register my unit with RERA . so I laughed . I ask you how can i register something that does not exist. The developer have been claiming that the building is under construction but from what I saw nothing is there no excavation , no pilling nothing . So I register an apartment that is in the air . They argued that now that i have already paid about 40% of unit value, that I can stop paying the developer since he did nothing , and he cant go to RERA and cancel your contract and pocket your 30%.
My mind just cant comprehend it . I go and pay 1.5% of the value of the unit , without a deed in my hand , but a measly contract . for a project that might not eventually get built ? and increase my losses?
please advice me
Regards

 

[Datum1m]

Dear All I might sound stupid here , But please humor me .
I know that the developer is registered with RERA , but I just got back from Dubai , and every one i met told me that in order to protect my self from the developer himself with the 30/70 rule , I have to go and register my unit with RERA . so I laughed . I ask you how can i register something that does not exist. The developer have been claiming that the building is under construction but from what I saw nothing is there no excavation , no pilling nothing . So I register an apartment that is in the air . They argued that now that i have already paid about 40% of unit value, that I can stop paying the developer since he did nothing , and he cant go to RERA and cancel your contract and pocket your 30%.
My mind just cant comprehend it . I go and pay 1.5% of the value of the unit , without a deed in my hand , but a measly contract . for a project that might not eventually get built ? and increase my losses?
please advice me
Regards

Unfortunately, most of what you are saying is correct. I feel the Government looked at how many times a units were changing ownership before they were built and thought hears away of making more revenue and we’ll be able to charge 2% of the selling price every time the units are resold, rather than 2% of the original price once the units are built. You can imagine them saying why should the Estate Agents get 2% of the off plan selling price while we get nothing. Although I do believe under the Law it is the responsibility of the Developer to register your unit within 60 days of purchase, although the cost of this could still be down to you, but I would also say the Developer could not use this as a reason for not registering your unit within the 60 day period. I feel the Developer would have to register the unit and then try and get the money out of you latter.

 

[memo123]

Thank you very much

So you dont think the developer would use 30/70 against me ?
and try to weasel out of the whole project since he is making 30% anyway without building anything according to law 13 .
regards

Unfortunately, most of what you are saying is correct. I feel the Government looked at how many times a units were changing ownership before they were built and thought hears away of making more revenue and we’ll be able to charge 2% of the selling price every time the units are resold, rather than 2% of the original price once the units are built. You can imagine them saying why should the Estate Agents get 2% of the off plan selling price while we get nothing. Although I do believe under the Law it is the responsibility of the Developer to register your unit within 60 days of purchase, although the cost of this could still be down to you, but I would also say the Developer could not use this as a reason for not registering your unit within the 60 day period. I feel the Developer would have to register the unit and then try and get the money out of you latter.

 

[TommyC]

Another question regarding this; Does it matter if you have a reservation form or a sales contract? Still the same amount paid and still a form of contract.

 

[Datum1m]

So you dont think the developer would use 30/70 against me ?
and try to weasel out of the whole project since he is making 30% anyway without building anything according to law 13 .
regards

I don’t know when you signed your contract, but if he has not started on site, then I doubt RERA would let him cancel your contract. I would not pay him another penny and then write to him requesting a meeting with him and all the other purchases who have bought from him. Tell him until you know that at least 90% of all his purchases are going to continue with his payment plan, you will not risk paying him anymore money.

The problem we have is as individuals we have very little say, but if we can all get together we then control the finances of any Development in Dubai, even Nakheel and Emaar are not going to build without any customers.

We need some IT guy to tell us how to use the internet to reach out to what must be hundreds of thousands of investors who have bought into Dubai, because they felt their Investment was safe and they felt the Dubai government would not let them down.

 

[memo123]

I bought since march

I have paid alraedy 40%. my first 15% didnt go to escroe . so i told him i wont pay id there is no escrow account. the 15 then 10 to an escrow account . and up to now there is nothing in site . i spoke to some investors in the same project , they told me that they have stopped paying long ago . and was told not to pay him to minimise my losses . and that he can do nothing,
my payment was due 10 days ago and iam so afraid he will charge 10 % FOR LATE PAYMENT THEN TAKE MT APPARTMENT .
WHAT CAN I DO ? I wrote him a letter to reschedule the payments , he said that is not possible for building under construction. it is a flat land there is not 1 inch up in the air . why cant he just cancell it and give us back our money .
thank you and regards

I don’t know when you signed your contract, but if he has not started on site, then I doubt RERA would let him cancel your contract. I would not pay him another penny and then write to him requesting a meeting with him and all the other purchases who have bought from him. Tell him until you know that at least 90% of all his purchases are going to continue with his payment plan, you will not risk paying him anymore money.

The problem we have is as individuals we have very little say, but if we can all get together we then control the finances of any Development in Dubai, even Nakheel and Emaar are not going to build without any customers.

We need some IT guy to tell us how to use the internet to reach out to what must be hundreds of thousands of investors who have bought into Dubai, because they felt their Investment was safe and they felt the Dubai government would not let them down.

 

[Datum1m]

I have paid alraedy 40%. my first 15% didnt go to escroe . so i told him i wont pay id there is no escrow account. the 15 then 10 to an escrow account . and up to now there is nothing in site . i spoke to some investors in the same project , they told me that they have stopped paying long ago . and was told not to pay him to minimise my losses . and that he can do nothing,
my payment was due 10 days ago and iam so afraid he will charge 10 % FOR LATE PAYMENT THEN TAKE MT APPARTMENT .
WHAT CAN I DO ? I wrote him a letter to reschedule the payments , he said that is not possible for building under construction. it is a flat land there is not 1 inch up in the air . why cant he just cancell it and give us back our money .
thank you and regards

If your project is in Dubai and not one of the other Emirates, then RERA are the people to contact. You can do this online and get a RERA conformation number that your complaint as been lodged with them. The Developer has to go to RERA and ask them to cancel your contract and as for as I know RERA will not cancel any contract where the Developer as not started on site. I can’t comment on whether RERA will allow your Developer to charge interest under these circumstances, I would hope not.

I feel what we are going to see over the next few months is Developers spending say 500,000 AED of our money to make it look like they have started construction, should an inspector from RERA go to site. This will then allow them to cancel our contract and keep all our 30%. The Investors defiantly need a voice within the Land Department, because at the moment the Developers are having it all their own way

 

[memo123]

I have already gone to RERA site

Registered , filled up a form and was given a number for my case
then nothing , how can i check if they have gone to the site or not , and what are the risks that this developer will go to RERA and tell them I haven't paid?
I have already paid 40% for blank
surely this developer sold the whole building but has done nothing

If your project is in Dubai and not one of the other Emirates, then RERA are the people to contact. You can do this online and get a RERA conformation number that your complaint as been lodged with them. The Developer has to go to RERA and ask them to cancel your contract and as for as I know RERA will not cancel any contract where the Developer as not started on site. I can’t comment on whether RERA will allow your Developer to charge interest under these circumstances, I would hope not.

I feel what we are going to see over the next few months is Developers spending say 500,000 AED of our money to make it look like they have started construction, should an inspector from RERA go to site. This will then allow them to cancel our contract and keep all our 30%. The Investors defiantly need a voice within the Land Department, because at the moment the Developers are having it all their own way

 

[Roshan]

So you dont think the developer would use 30/70 against me ?
and try to weasel out of the whole project since he is making 30% anyway without building anything according to law 13 .
regards

In most cases the developer would not like to cancel even if he can pocket the 30% because it would only add to his woes. He would not like to kill the hen which lays golden eggs.

Whether the project is in the air or sea, it has to be registered with RERA. Rules keep changing, things are a mess. A self sorting machine could help.

Regards

Roshan

 

[memo123]

you cant resell

I know what you mean , i had a reservation form for they claimed they wont give me the contract until I pay 30% . I had a buyer back in April and when i told him i only have reservation form , he ran away . you cant do anything with reservation form , it is not a contract , but they can still keep you money if you forfeit

Another question regarding this; Does it matter if you have a reservation form or a sales contract? Still the same amount paid and still a form of contract.