GR8 Holdings selling Lake Signature 1-Ajman

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V

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
 
A

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
 
F

financier888

New Member
Spa

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
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
 
V

verity

New Member
Lake Signature 1- Ajman - GR8 Holdings

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
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
 
V

verity

New Member
Lake Signature 1- Ajman- GR8 Holdings

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
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
 
F

financier888

New Member
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 ?

The Affectiion plan is supplied after the plan is approved - so, in order to sell, the Ajman authority has to approve the proposed plan and they will get the affection plan. I am sure the site has been approved as they are advertisign it etc


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 ?

Is should read 'Sales Purchase Agreement' - (SPA) and it should be between 20-40 pages and outline many terms and conditions... it does NOT have to include a construction time line but it does have to include a projected completion date...

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 '

You to need to determine if GR8 has PAID the 30% - !!! to Chapel - if they have not, they may default and the site reverts back to Chapel - the master developer - I would contact Chapel to verify this ! the second part - is the Govt of Ajman MUST approved the plans - which, I suppose they have done other wise they would not be able to market said site / units.. (ALSO - sending you an 'unsigned' 2 page agreement??? sloppy / unprofessional and 'what were they thinking?? that you'd sign BLANK pieces of paper.. I guess they thought you'd didint read or write english... ???

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

I am lost here.... N.M. Hotels? are they selling agents? I hope you are making your payments directly the developer and NOT into tha account of a sales agent.. very risky and against the law in Dubai under RERA, but of course, this does not exist in ajman yet... It sounds like you bought the units on a resale from NM Hotels and NOT from GR8 ! In which case you may have a good case against NM Hotels for a refund...

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 would have an atty send them a registered letter forthwith - pointing out that the contract they sent does not conform to the initial agreement you signed ! including the 'free' parking space... it is absolutley mind boggling how they can send you a contract with a BLANK payment plan???? I have never heard of such a thing ??? I mean - it is your Sale / Purachse agreement??? don't pay one more cent !!! Being that GR8 is registered and operates out of Dubai, you may have a case to get yoru money back - based on a tort action... but what the cost of this would be against the amount of your investment I don't know..

What also complicates the matter is this agent NM Hotels and if they are licsensed brokers in your region / country... (not 100% sure if you are in the UK or not... This is off ! and gross mispresentation - it sounds like the agents that sold you the flat made respresentations that perhaps they were not authorized to make - and if you made initial payments to NM Hotels - you can get your refund from them.. I just dont have enough particulars to comment... It may be mroe cost effective to have a local lawyer send a notice to NM Hotels and GR8 - before hiring an atty over here.... The first order of business is check and make sure GR8 has paid the min 30% on the land...


good luck!

I am sorry it is all about more questions
thank you again
v
Please revert to my response in RED
 
V

verity

New Member
Lake Signature 1- Ajman

Please revert to my response in RED
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
 
F

financier888

New Member


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

What was the original agreement you signed when you paid your deposit? (a reservation form?) That contract does contain the payment schedule, the free parking etc? Correct?

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

You need to inform GR8 in writing - certified letter - stating that the contrat you have (SPA) does NOT conform to the original contract (reservation form) you signed and the contract needs to conform to the terms and condition that you purchased under - including the PAYMENT PAGE !!!!

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

If you want to cancel, I would write both - by certified letter and tell them you are cancelling becuase the terms and conditions of the final contract (SPA) does NOT conform to the original terms and conditions you agreed to. If your agent is local and you did the deal through them and passed the money to them - you m ay have legal recourse to sue them if you dont get a refund, but you need to check with a local lawyer..... ALSO - in regard to cancellation - you must check the langauge / provision in your original agreement that outlines "CANCELLATION' - it should have clause connected thereto.

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

Not clear on this - DID Chapel tell you that they paid the 30% ? This is important..
You need to know if they are current in their payments or if they are in default. If they are in default - it's less likely you may get a refund. It means they dont have money and you funds not being secured - are gone and you'll have little in the way of recourse... that's Ajman currently.....



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


Because they know very well, that there will be in all probabilty delays in infrastructure services which developers were aware may be an issue for sometime - just like buildings that are completed and ready to be handed over in the centre of Ajman but have been not - no electric and this is in the center of town. As such, they don't want to be liable if the govt doesnt provide the requisit services or are delayed... These issues and concerns have existed for over a year - no surprise there although the govt did enter into a JV with a firm in Malaysia to build a power plant but the deal may have died for lack of funding after the financial crisis. I do not know the update but it looked like it was going to be cancelled due to lack of funds.. This may of changed again but I am not aware....

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

If you still find that you are not getting responses, better retain an atty in Dubai to put them on notice and seek advice from an atty locally inregard to recourse with the local agent - IF you passed the money to them... YOu need to check local law in this regard. Chapel is not going to get involved if they are acting as Master Developer and have sold the plot to GR8 - who in effect, (it seems that way) that they are the developer - so insofar as Chapel is concerned - it's between you and GR8. The differences in the terms between your original agreement and the final contract are significant. It's highly unusual for them to submit the final contract with BLANK payment pages! I have handled these types of contracts and the payment schedules are ALWAYS inclusive! that why it;s called a SALES AND PURCHASE AGREEMENT!! (SPA) ???
v
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 !!!!!!!!!
 
V

verity

New Member
Lake Signature 1-Ajman

Please revert to my response in RED
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
 
F

financier888

New Member
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 ?

Well, they would be foolish to lie about this - the 40% payment. If they are, they are setting themselves up for potential serious trouble. Insofar as the plot being turned over to them by the end of the week? - best to check with Ajman Municipality to verify this - the land dept but next week. The timing is rather interesting..... but possible... or not...

They also say that 90% of L.S. 1 is sold ! can I trust them ?

I wouldnt trust anything a broker would tell me. 90% sold? great.. and defaults? or 90% paid-up and current...? Sounds like brokester hype.. Question is, without an escrow no one knows if the monies they have been collecting are going into a segregated account for that building,., This is the one biggest problem in Ajman and has also happened quite a bit in Dubai before the escrow law was introduced..... I know I may sound a bit jaded but I have seen too much..

If the developer has indeed sold out this amount - he should start building ASAP as constructions material prices have droppped and builders are desperate for work. The project will be far more profitable than if they had started a year ago. Good time to get started and will boost investor confidence

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'


'NOMORE' Hotel - the agent? I dont think I would give my money to a company with a name like NOMORE! funny...sorry...

They developer must be new to this... What's the purpose of sending a 'draft' copy to the end user? or to an agent for matter? When that contract leaves the devleoper to the end user - it should be the FINAL draft ! especially if they are expecting you to sign it !!! Either way, DONT sign ANY contract until such time it conforms to your agreement...


When you purchased, you signed an agreement - usually the reservation form - often 2-3 pages.... Did you sign this when you bought? (you must have,,,, with the original terms,.,) The contract you recieve afterwards - 20-40 pages... is the SALES PURCHASE AGREEMENT (SPA) - this usually comes several months after the reservation form and after the buyer has paid 30% or thereabouts....
GR8 accepted inclusion of Free parking space and provided Payment plan- but not linked to build timeline

Not much you can do about that until such time Ajman authority institutes this as law... which may be coming.... when? can't say for sure but in the works... Once the law is enacted - then they will have to conform irrespective of the contract terms - like in Dubai.. (IF they implement a law that forces the developer to link construction to payments) Unit owners should organize to ensure there is transparancy and these guys havent spent all the money already!! If the developer is 'straight-up' - they will not have any issues making representations to ensure good will and further payments! If the funds went somewhere else - like to another plot , they will not be forthcoming..

Under the present circumstances, Ajman should be considered HIGH RISK - depending on the strength of the developer of course. I am just stating 'possibilites' - some developers in Ajman of course, will deliver as promised and have but some will not. A fact of life and a sign of the times... Ajman could be considered a 'secondary' market - a spin-off to Dubai. Secondary markets are cheaper, more value for the dollar but also - more risk. Development environment in Ajman will get better as laws and regulations go into effect, which are coming - to protect investors, so they are aware of it and will remedy it.

Preliminary contract is silent about future changes in final SPA

Maybe there were not going to be any changes till you raised the issue? You'd be surprised how many buyers don't read them very throroughly ! I still am quite skeptical about this 'preliminary' contract... 'Preliminary' contracts are issued to the developer from the atty for review!! NOT released to the end user?? This is the first time I have heard of this..... most unusual. I would NEVER release a 'preliminary' contract to end user and don't know any other experienced developer that would... A lot of work and man hours go into these preparations - why do it twice????

Chapal is very uncooperative about plot handover information

They shouldnt be. In Dubai, a developer cannot sell off-plan UNTIL they have land - handover. Although this is not the law in Ajman, they should be transparant - because the message they are sending is the wrong one by being evasive. It's your money and why shouldn't they be forthcoming? unless, it's been delayed indefinitely and they are reluctant to say.. (incidentally, if the Master Developer is delayed in the handover - most often - they extend a grace period to the sub developer on land payments....) If there is a delay - be honest and explain why. It's far worse when they give a date - like the 'end of week' and a month later - the handover still hasnt happened. This is a sure way to turn-off the buyers and will result in defaults. No one likes to be played 'the fool' - especially in these times under these market conditions. Better to be honest and transparant and you will find that buyers will work with you but once the trust is lost - well, defaults will increase assuradly, followed by legal complications. The Ajman authorites will not take this too kindly either..... They don't want investors getting burnt. The other reason why they might be reluctant to say is they dont know what GR8 is telling buyers and dont want to contradict them... however, they should be sure that GR8 is not misrepresenting the development..

( I am only speculating here for two reasons, 1) I don't know all the facts as I am not involved with this deal and 2) the only speculation you can really do here these days is in thought.. wondering what is going through the mind of developers )

Should I insist on SPA conforming to Prel. contract ?

What do you think??? Don't you feel you are entitled to a contract that properly reflects the original terms and conditions you purchased under? or have you been drinking too many pints to ask me this? ; )

and have solicitor write GR8 letter ?


Well, if GR8 is already agreeing to amend your SPA to conform to the original terms and conditions - no need to spend $$ having an atty send a letter. Giving them the benefit of the doubt, there may have been miscommunication between the Nomore Hotel guys you bought from and GR8 or the person generating the SPA's did not read or review your original agreement and amend the SPA accordingly. An oversight becuase perhaps they are rushed to get them out, which can happen. (especially in case where there are many different types of payment plans...) Ideally, within proper corporate governance, the contracts should be reviewed by at least two parties, be checked, before being sent out because mistakes can happen.... They may be new at this and not have the proper peronnel handling this.. The important thing, is they have told you they will change it - which is the right thing to do. No need to get lawyers involved - at this point anyway....


have a good week, thank you

I'll try - you too!!
v
please revert to above in BLACK....
 
Last edited:
V

verity

New Member
Lake Signature 1-Ajman

please revert to above in BLACK....
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
 
V

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
and thank you again....
 
F

financier888

New Member
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
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
 
V

verity

New Member
Lake Signature 1-Ajman

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
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



 
F

financier888

New Member
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 ??

You need to get an opinion by a local atty, - NOMORE may be able to put pressure on GR8 - dont really know.. But if NOMORE are lic. brokers - they may be obligated - but your real issue is with GR8 - you're asking me a legal question I cannot answer


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

Usually the developer has to stand by the building strucuture for 10 years and in fact, I believe in Ajman - the developer is obliged to have some funds posted in an acct - as a bond.. Not sure if that is still part of the law. You need to check the regs in Ajman muni.


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


YOU should start your own thread on this forum and see whom responds.. based on what you told me and how they have handled things - they seem very new to this. that doesn';t mean however, that they cant construct a fine building. If they have sold out as much as they claim - they should build the structure, as it would be profitable - the only potential problem is, misappropriation of funds - meaning the sales revenue from one bldg - goes to other plots or where ever - which has been very prevelant in Ajman, RAK and in some cases, Dubai.

Many of the developers that sprung-up came out of other industries that operated mom & pop types of businesses. Even if their business was large - it was operated like a small business and of course, when you want to find the cheapest labour - you get what you pay for. All clerks running around, not really knowing what they are doing and one Supreme Master - the boss! I have seen this often here.,. Not to say GR8 is like this - I really dont know but many of small outfits opreate like this... Some people just have to learn he hard way.. what can i say?

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


This is a legal question - you need a consult an atty - my feeling is, it may be doubtful, considering GR8 has already agreed to make changes to conform - like your free parking space and the payment plan.. Considering you'd have to litigate in Ajman - I wouldn't recommend it. Wait till the enact all the laws and start their version of ReRA - if you have faith that the developer will build the project - you should carry-on. Best to come out - check out the progress and meet with them. I don't think they were trying to get over on you - I think it was more of a matter of miscommunciation and inexperience. But, you must judge for your self.



as ever, thank you again
have a good weekend
v




as above....so below
 
Last edited:
V

verity

New Member
Lake Signature 1-Ajman

as above....so below
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
 
F

financier888

New Member
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 ?

Usually - for defects INSIDE the apartment - it's one year and 10 years for structual. You should ask for clarification and see how long they will gaurantee the structual.


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

They might - If they start construction soon - the project will go forward... You are stuck until such time the Ajman laws get implemented. You may want to press them for a construction timeline.. With no RERA laws in effect currently in AJMAN, you are pretty much bound to the agreement you signed. have you tried reselling it? and are you prepared to lose your 20% ? You are asking me for a legal opinion that I can give you - you should really consult a local atty as to what your rights would be under law - in an Ajman court - which only an atty can provide you with

thanks again
v
as above - in black
 
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 ?
 
D

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
 
V

verity

New Member
Lake signature 1-ajman

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 ?
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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