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GR8 Holdings selling Lake Signature 1-Ajman

Discussion in 'UAE Property' started by verity, Jan 18, 2009.

  1. verity

    verity New Member

    does anyone know GR8 Holdings developer selling Lake Signature 1 at Emirate lake towers-Ajman ?
    is anyone buying there ?
    on their website they say to be member of GR8 Group with presence in USA, Pakistan and Dubai in various industries since 30 years, some of which include:
    GR8 real estate
    GR8 building materials LLC
    Guardian Real Estate (pvt)Ltd
    Bridgeight real estate Management
    Bridgeight interior Designers
    The Cube event Management
    Armour protection Services
    Capital Market
    Does anyone know track record of any of those companies ?
    GR8 says they signed contract to build with TAFANI General Contracting but would not show copy of that contract
    They showed me copy of Site Survey plan (affection plan ?) stamped by Ajman Planning dept. and naming GR8 Holdings as owner, and Chapal World LLC as master developer- does that confirm they will build this project ?
    In SPA it says CHAPPAL - is it same as Chapal company ?
    I am pressed to make next payment- should I ?
    Am I the only person who bought in this project ? the only one to deal with GR8 ?
    please help
    thanks
     
  2. alukok

    alukok New Member

    I also bought a one bed room flat + study from GR8 in the lake signature building and it has caused me nothing but trouble. I have paid over £20,000 in instalments and have still not received any documentation from them.

    I sentbn them an e-mail this week and informed them i will not make anymore payments until i get some form of documentation. I have no confidence in the company and will be trying to see if and how i can get out of this contract and money back.

    There is no way that they will now be able to complete the building by 2011 as stated ( that was long enough).

    I am also in Limbo as what to do? It might be an idea to bring it to the Ajman authorities if that helps at all

    Kay
     
  3. financier888

    financier888 New Member

    Spa

    Does your SPA state that Chapal are the owners? Does the name GR8 appear anywhere on the contract? (SPA) if not, Chapal is then the owner / developer and like most developers - they are feeling the crunch... (who are your checks / payments being made to? To Chapel or GR8??? You sure GRB is not simply a broker selling the project?? I say this because some brokers were collecting the funds and you have no gaurantee they pass it on to the developer.. If they bust out - the last payment you made to the broker may not make it the developer as just seemed to happened with Casadubai... I am not sure of relationshop between GR8 and Chappal....)

    Don't expect much help from the Ajman authority until such time they set-up their version of RERA - they will simply refer you to the developer as it's a contractual issue - a lawyer will tell you that you will be obliged to make the payments in accordance with the agreement you signed.. If the payments are not linked to construction - then you will be obliged to pay pursuant to the terms and conditions of the agreement. (does your reservation form have a cancellation clause & outline penalites for cancellatione etc?)

    Your best bet would be to try to renegoitate the terms or ask for extensions from the developer under the circumstances. Until such time Ajman enacts and is prepared to implement the new laws, there's nothing you can do. If you stop payment without trying to work out a different payment plan or extension from the developer - you may lose the entirety of what you have paid.. As to wether or not they will proceed - anyone's guess - it depends on what % of the building they have sold and how over-extended they are on other plots.. In absense of an escrow acct / laws - it was not uncommon for developers in Ajman to use sales proceeds for other plots etc - as well as their overhead etc... Chances are, even with an escrow in place, if you paid less than 30% and they cancel, your money is gone...

    I guess it comes down to this - ' Do you want throw more good money after bad, without any assurance that this project will actually be built? You may want to ask them if you can apply the funds you paid to another project they have under construction? They may be amenable to that... Currently there is little in the way of governmental law / regulation to protect you, so your only real option to negotiate with the developer... I would try to transfer my payments to a project under construction even if it meant paying a slightly higher psf price. At least, you have a better chance to protect your investment.. unless you are prepared to write it off.. When it comes to Ajman, I would be very concerned about making any more payments on 'plots of sand' unless I see real progress and the developer operartes in a transparant manner..

    BTW - NO developer would let any buyer 'see or examine' there contsruction contract.. They would announced that they signed a deal with a contractor but never disclose the contents of the contract.. This is the standard practise ANYWHERE - so, this is not uncommon. At this point, Ajman is very high risk,.. for many reasons.... ALSO the site survey you examined stamped by the govt simply means the plan has been filed and approved - it DOES NOT mean the project will be built.. these also exist in Dubai but many of these projects are being cancelled...

    good luck and I hope this helped...

    good luck
     
  4. verity

    verity New Member

    Lake Signature 1- Ajman - GR8 Holdings

    Hi Kay

    You bought in L.S 1- Emirate lake towers-Ajman ?
    So did I
    Which agent sold it to you ? - Are you in UK ?
    'No More Hotels' or 'Unity Estates' agents in England ?
    Have you signed Preliminary contract with agent ? with 3 years Payment Plan ?
    Perhaps we could both get in touch to make representation to GR8
    Are there other buyers who want to join ??
    let me have you email address
    and read through my previous threads about LS 1 and GR8
    hear from you
    Verity
     
  5. verity

    verity New Member

    Lake Signature 1- Ajman- GR8 Holdings

    Thank you again
    very kind of you to advise me

    Site Survey plan stamped by Ajman Pl.dept says GR8 is owner who need to apply for Affection plan - so this survey plan is not Affection plan ?

    GR8 Contract written on GR8 watermarked paper is named ' Payment Agreement' or 'Agreement to sell'- is it SPA ?
    Would SPA and Affection plan include Construction time schedules ?

    Contract names GR8 as seller, Chapal as developer or master developer- so who is developer(sub-developer?), site owner ?
    GR8 sent me copy of unsigned 2 page agreement of Chapal selling site to GR8- that contains clause' contract invalid if 30% not paid and if not authorised by Ajman L.dept '

    My payments (20% SO FAR)were to GR8 Holdings account with ABN AMRO (bank recently bought by RBS?)
    and I hold payment receipts emailed by GR8
    I signed 3 Years Payment plan ( not linked to site progress) not with GR8- but with N.M.Hotels agent in UK

    Preliminary contract signed with agent differs from GR8 contract emailed recently to me as follows:

    -free parking space not mentioned ( previously incl. in unit price)
    -late payment penalties are 4% monthly compounded- was 1%
    -payment refunds by GR8 are interest free( paid with interest previously)
    -completion moved forward by 6 months
    -no Payment Plan included (blank page in GR8 contract)
    -30% retention of funds if I cancel (was 20%)
    COULD I Cancel project( get refunds) on the above GROUNDS ?
    Can you recommend lawyer for this ?
    Do I need lawyer to Renegotiate payment plan with GR8 ?
    Would my getting in touch with Chapal be recommended ?
    ask if GR8 paid for plot and when they start on site
    Tafani contractors (that I spoke to recently) have not signed Contract to build

    I am sorry it is all about more questions
    thank you again
    v
     
  6. financier888

    financier888 New Member

    Please revert to my response in RED
     
  7. verity

    verity New Member

    Lake Signature 1- Ajman

    Hi
    Thank you for support

    Preliminary Contract signed with agent in UK names GR8(developer) as Seller
    Payments were made directly to GR8 account in UAE
    Payment receipts were emailed to me by GR8
    SPA- named 'Sales Agreement' or 'Payment Agreement' was only emailed to me by GR8- I hold no hard copy of it

    SPA does not conform to Preliminary contract by :
    -exclusion of Free parking space
    -Late payment penalties shot from 1% to 4% monthly compounded- that is 48% of unit cost per year !!!
    - Payment Plan page is left blank

    Whom do I hold to account for gross misrepresentation and Refunds for rescinded contract ? GR8 or Agent ?

    After my emails/ telephone conversations with both GR8 and Chapal they sent no response to me at all.
    Chapal was to confirm that plot was handed and GR8 paid minimum 30% for plot
    Looks they have not received pay for plot

    Both Contracts have very wide provisions under Force Majeure clause, that extends to events like ' failure of the transportation of any personnel, materials etc.required by Seller'
    'change in or any additional contractor or subcontractor'
    'failure of utility service including electric power, gas, telephone service'
    Handover date is freely extendable by developer without him incurring penalties

    do not expect much cooperation from GR8 and Chapal
    and look forward to your thoughts on that
    thank you again
    v
     
  8. financier888

    financier888 New Member

    If after your notify GR8 and your local agent and they decide to change the terms of the SPA to comply with the terms of your reservation form, you would be obliged to continue to make the payments... Your only other recourse for cancellation would be the terms and conditions in your original reservation form - which should have clause relating to cancellation...

    good luck !!!!!!!!!
     
  9. verity

    verity New Member

    Lake Signature 1-Ajman

    Hi and thank you again
    GR8 confirms by email that they paid 40% plot cost to Chapal and plot will be delivered to them this week- is such statement by email valid proof ?
    They also say that 90% of L.S. 1 is sold ! can I trust them ?
    Re: Contracts
    GR8 email says:
    'contract sent to Nomore Hotel (agent) was the draft copy and it was told that the final contract will have some changes',
    'Sale Agreement' & 'Sale and Purchase Agreement' are the same thing'

    GR8 accepted inclusion of Free parking space and provided Payment plan- but not linked to build timeline
    Preliminary contract is silent about future changes in final SPA
    Chapal is very uncooperative about plot handover information
    Should I insist on SPA conforming to Prel. contract ?
    and have solicitor write GR8 letter ?

    have a good week, thank you
    v
     
  10. financier888

    financier888 New Member

    please revert to above in BLACK....
     
    Last edited: Jan 26, 2009
  11. verity

    verity New Member

    Lake Signature 1-Ajman

    Hi again

    reading through SPA contract :
    - GR8 reserves right to revert freehold interest to 99 years lease interest ( if F/H is not on offer from Ajman gov)- but project is in Ajman free zone !!

    - GR8 upon delivery of property nominates themself as estate manager of the building
    - service charge will be AED 0.3-0.6 psf + 30% of the fees ( what fees ??)

    - builders ( sellers) structure defects guarantee is now reduced from 10 years to 1 year post completion !

    - Force Majeure delays can extend to 2 years or more

    These are major differences between Prel. Agreement I signed at reservation and SPA they sent to me now

    Can I rescind my contract with GR8 and seek full refund if SPA does not conform to the Prel. Agreement ?
    Cancellation penalties in Prel.Agreement are 30% of contract but contracts do not conform
    GR8 is unresponsive to my phone calls and emails - it looks they won't amend SPA

    UAE Contract law should not be that different to UK contract law ?
    but UK solicitors are reluctant to get involved and serve reg. letters on GR8
    saying they do not practice UAE law
    I did send reg.letters myself outlining SPA not conforming and asking GR8 to amend SPA or refund fully my funds paid

    Will prices in Dubai drop by 40% later this year or its just a talk ?
    hope to hear from you,
    v
     
  12. verity

    verity New Member

    Lake Signature 1-Ajman

    and thank you again....
     
  13. financier888

    financier888 New Member

    UAE LAW and UK Law are quite different. (and this would be a dispute over an AJman property,,) UAE is law is a composite of the French Systemn & Sharia elements in it. Your UK solicitors are correct as they are not lic. to practice in UAE - however, if you made payments to NOMORE - you may be able to go after them.... If you cancel and they actually refund you 70% of your money - you'd be lucky and should take it and better to discuss thsi with a local atty,,, Once the Ajman level of RERA forms, you should have more protection.

    Yes, prices are already dropping - in some cases more than 40% - (based on asking prices.,.) The thing is - even if you drop your price to 2006 op levels - you may not find a buyer! THe market will adjust to 2006 price leves or thereabouts,. - which will make Dubia a more affordable place to live .

    I'd talk to an atty about your contract issues, and you better talk with buyers of this building that are living here - and see what they think and check the progress.. Not sure if GR8 has ever built a building?

    good luck
     
  14. verity

    verity New Member

    Lake Signature 1-Ajman

    Thank you again
    My payments were to GR8 bank a/c in Dubai and they emailed receipts to date. First payment receipt was also send by No More agent-COULD I PURSUE NoMore for all refunds ??

    What also bothers me is GR8 reducing Building Defects guarantee from 10 years to 1 year post completion- is this legal in UAE ?

    HOW can I source out other buyers in same tower ??- could you recommend website or hotline ??
    GR8 never built before, not in UAE - they have manufacturing background

    Do you think i can rescind this contract because of both contracts non-conformity ? (in either UK or UAE ?)


    as ever, thank you again
    have a good weekend
    v



     
  15. financier888

    financier888 New Member


    as above....so below
     
    Last edited: Jan 31, 2009
  16. verity

    verity New Member

    Lake Signature 1-Ajman

    hi again

    but SPA stipulates GR8 bldg defects guarantee for 1 year only (after completion)
    which is illegal with Ajman law ?
    Should I sign this SPA or insist on amendments
    or delete illegal paras/clauses myself and then sign it ?

    I have paid 20% of contract
    Cancellation penalty is 30%
    Would they demand further 10% if I stop pay and cancel contract ?

    thanks again
    v
     
  17. financier888

    financier888 New Member

    as above - in black
     
  18. fracas99

    fracas99 New Member

    HI I bought a 2 bedroom unit through Unity Estates, and now after reading the above comments, I am not sure what to make of this investment, - do i continue paying?

    also do we have each others email addresses so we can band together ?
     
  19. dalton Ice

    dalton Ice New Member

    hi...
    i have a 1-room plus study unit in lake signature!!!would appreciate if you could share any information!!!
    thanks..
    dalton
     
  20. verity

    verity New Member

    Lake signature 1-ajman

    Hi
    I bought studio in L.S. 1- Ajman
    and am in talks with GR8 and posted few treads here
    about inconsistencies of SPA and other things about this project
    GR8 cannot prove that plot was handed to them by master Chapal
    if they do not hold title to plot- project will never go on site
    developer may default with our money
    give me your email address so we can bunch and share cost of lawyer
    are you in UK ?
    v
     
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