Investors against interpretation of law no 13

[TommyC]

—Secondary market prices have dipped around 20 to 40 per cent in Dubai. As a developer, would you lower your prices in the primary market?

—Secondary market prices do not drive the benchmark prices of a developer. We developers will not fight with the secondary market. The secondary market prices definitely impact the psychology of a buyer but developers are not reactive to them. As a master-developer, we will re-evaluate our pricing strategy.

What a pile of BS. The pricing they have put on developments are seemingly ONLY influenced by the secondary market prices:

Lots of smoke, where?s the fire? - Real Estate - ArabianBusiness.com

For VIP Waterfront, spurring that market change has meant significantly cutting profit margins, although Garin is quick to note just how huge those margins were. "For these developments, we run at profits of between 100 and 300%," he explains. "If we start taking profits of 40 or 50%, that's still great.

I have yet to hear from a developer say "Since we managed to re-negotiate the construction contract and save almost 40%, we will of course pass on these savings to you, valued customer (or whatever the typical phrase they refer to their customers are),by cutting AED 200/psf on the contract cost. On top of that we will of course compensate you all for the delay that was incurred by this procedure by a fixed interest of 8%/p.a. on the monies paid, which will be added to your paid balance on a monthly basis. This will all be clearly shown on your next escrow account balance letter that will be sent out early next week. Revised payment plans will also be sent out, where we expect the next payment to be due in about 4 months when the foundations are completed, but this is of course subject to the actual progress. As usual we invite all of you to come by the visitor office at the construction site for a coffee and inspection of the construction progress."

Right...

 

[abey]

Dear escrow
if i bought in march , law 13 does not apply to me ? my understanding that it is .
also if the developer admitted three time s that yes i have been using the escrow account to pay for the land , isnt that a big violation
i spoke to rera and told them about it and they said if you have evedence that the developer have used the money to pay for the land you have the right to terminate the contract in the land court and get your money in full , also according to Bin Ghalita that if you have paid 20% of the capital and the developer have done nothing then we should not pay more .
ALSO IF I HAD SIGNED THE RESERVATION FORM FROM LONDON ON THE 28TH AND WIRED TRANSFERED THE MONEY ON THE 1ST APRIL THE i recieve my first reciept on the 22nd may and the i recieve the the SPA with a cover page dated 18th august , and in it so many clauses changed than original MOU , AND THE spa WAS DISBATCHED TO US ON THE 13TH OF OCTOBER DOES THAT MAKE US UNDER LAW 13 NOW?

please advice

Are you talking about a property in the Dubai Waterfront?

 

[abey]

Update After Meeting With RERA.

1 - Law 13 with amendment applies to all projects registered after 31/08/08 and LAw is

" Developer is entitaled to retain 30% of the money deposited and on top of that 30 / 70 on remaining. "

Projects registered before 31/08/08 would be treated according to their respective contracts.


2 - Payments would be linked to Construction from now on though wouldnt be avilable in written for some time But decision has been taken.


3 - Developers are not entitled for any kind of interest for the money deposited by the investors. Developers wouldnt be able to claim it.

4 - Developers wouldnt be able to withdraw funds from Escrow anymore as previously was allowed under Cost & revenue Excess.


Regards
Escrow

Hi Escrow

We purchased in June 2008 and paid 15% on Reservation Contract. 1st instalment due on 1st August was also paid. Developer delayed 2nd installment till March 2009 as Nakheel Delayed Waterfront Projects. More than 6 months has gone and still construction has not started.

We only signed a Reservation Contract. SPA was couriered in late October, but we have not signed it and neither have they asked for it.

They have refused to refund our monies.

What should we do?

Please help!

 

[TommyC]

Might be of some interest:

Downturn displays the flaws in Dubai's legal system

 

[DelboyG]

Gentlemen,

Is this the petition that you've submitted? RERA chief denies petition from worried investors - Real Estate - ArabianBusiness.com

 

[amidhadli]

Hi Datum1m. I would like to sign the petition but I'm a new user on this forum so can't PM you. Please give me ur contact details. Also, when do you propose to submit this document to the authorities?

hi i am new user like you to and would like to sign up so you have datum email or how did you sign as i have now had the final letter for lake view damac which is a nightmare

 

[amidhadli]

Hi Escrow

We purchased in June 2008 and paid 15% on Reservation Contract. 1st instalment due on 1st August was also paid. Developer delayed 2nd installment till March 2009 as Nakheel Delayed Waterfront Projects. More than 6 months has gone and still construction has not started.

We only signed a Reservation Contract. SPA was couriered in late October, but we have not signed it and neither have they asked for it.

They have refused to refund our monies.

What should we do?

Please help!

my property has just been registered now on final clearance letter i purchased this in 2004 would law 13 cover me

 

[amidhadli]

Dear All

whoever has any concern, question or suggestion, Please approach me

We are in the market to make sure that rights are protected

Do not listen to rumors, ask RERA and you will get the right answer wthin 48 hours


RERA official

i have phoned rera many times and emailed and logged complaints they are being ignored i emailed again two days ago was promisd a response still none so you guys are also ignoring us so what do we do my email for response [email protected]

 

[Trapped]

I am loosing my millions

Hi All,

Anybody knows about Datum1's contact details? I really want to discuss my situtation with him. My email is gr8ee @ yaho ,

Please do reply.

Thanks

 

[amidhadli]

Hi All,

Anybody knows about Datum1's contact details? I really want to discuss my situtation with him. My email is gr8ee @ yaho ,

Please do reply.

Thanks

hi [email protected]

 

[TommyC]

Rera and investors band together - The National Newspaper

 

[Datum1m]

Law 13 in its original form is what the courts will rule on NOT illegal Land Department Administrative Circular. So this thread, as been very helpful in getting investors together, but this is not the end, we have still got a long way to go before we get our money back.

 

[suhailf]

Not signed the contract so far!

There's one scenario which has not yet been explained by any law or article clearly. That is:

I have purchased a 1-BR apartment in Jumeirah Village in Aug'08 for 1.1 million. I signed the reservation agreement/ booking form and paid a down-payment of 25%. However I didn't receive the unit sale/purchase agreement until about 1 month ago. Since I do not want to continue with this deal due to my present financial condition, I have not yet signed the contract and don't intend to sign either. The developer has not yet asked for the agreement to be signed and I am skeptical about it too.

What if I decide to cancel my reservation now? Can I claim the money (25%) that I have paid so far? RERA/ Land department/ Property Courts only administer & give rulings based on contract which does not exist for me so far. A clause on the reservation form mentions that "If the buyer does not sign the Sale purchase agreement within 25 days of it's issue, the seller has the right to retain 10% of the property value". Does that mean I can get back the 15% I have paid so far? Is there any way I can ask for the entire 25% as the Sale/Purchase contract was issued only after 4-5 months of the reservation and still does not bear the seller's signatures?

 

[nictt]

Hi Guys,

Is there any more updates on this yet?
Is it back to 30% of amounts paid you will loose if you default on payments to the developer, or is it still 30% of contract value at the moment?...

 

[TommyC]

UE: Real estate set to get more transparent

 

[TommyC]

Dubai acts to mediate property disputes - The National Newspaper

 

[AjmanInvestor]

Law 13 in its original form applies to the whole of UAE or only to Dubai

________________________________________
Dear DATUM1M

The law 13 in its original form applies to the whole of UAE or only to Dubai. Kindly clarify and sorry for my naviety.
My friends are badly stuck with their life time savings in the gulf by investing in Ajman and also in Dubai.
Some of my friends invested from Oman and India. They stay in India...they are badly stuck as they are in India and they cant follow up with their cases.

Law 13 in its original form is what the courts will rule on NOT illegal Land Department Administrative Circular. So this thread, as been very helpful in getting investors together, but this is not the end, we have still got a long way to go before we get our money back.

 

[TommyC]

________________________________________
Dear DATUM1M

The law 13 in its original form applies to the whole of UAE or only to Dubai. Kindly clarify and sorry for my naviety.
My friends are badly stuck with their life time savings in the gulf by investing in Ajman and also in Dubai.
Some of my friends invested from Oman and India. They stay in India...they are badly stuck as they are in India and they cant follow up with their cases.

Law 13 in its original form is what the courts will rule on NOT illegal Land Department Administrative Circular. So this thread, as been very helpful in getting investors together, but this is not the end, we have still got a long way to go before we get our money back.

It's a law that applies in Dubai alone.

 

[AjmanInvestor]

Thanks Datum1m

So what about Ajman who can give me information as to what applies in Ajman regarding the law 13

Regards

 

[TommyC]

So what about Ajman who can give me information as to what applies in Ajman regarding the law 13

Regards

There is no Law 13 in Ajman, nothing to apply there.