Investors against interpretation of law no 13

[nictt]

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,
With regard to the above.. I purchased back in 2007 and my project is still at shoring and piling stage, so even though at the moment law 13 does not apply to me in regards to payments and i have to follow when is stipulated in my contract.. What about point '2' in your post regarding payments linked to construction?. Does that apply to every investor, or just people who bought after 31/08/2008? And are the developers aware of this new rule? And do you know at what stage developers and able to ask for the next installment (percentage)
Ive currently paid 35% with another installement due end of this month which obviuolsy i dont want to pay!...

 

[therealdubai]

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

In article 2, when you said "payments would be linked to construction from now on" do you mean all projects or just the projects launched after this amendment?

Thank you

 

[ashraf_786shaikh]

Does this Law 13 of RERA only apply in Dubai emirate or is it also applicable in Ajman?
Is it a good option to invest in Ajman in January 09 ? in off plan projects? Plz advice.

 

[Roshan]

a recommendation by Marwan bin galita that developers can't ask investors for payments on projects not started yet. If you read arabic pls check this linkhttp://www.alkhaleej.co.ae/portal/c18604cc-404c-422d-9a7b-8df27e789376.aspx

RERA also says that if payments are not made in line with the developers requirements, it could end in default and ultimate termination of contract.

RERA should come up with a book of laws which can be easily interpreted and discussed with developers in time of crisis.

Regards

Roshan

 

[paparulo]

Breach of Contract by Developer?

Dear All, Please I need orientation.
I have purchased an off plan office space at Tamani Arts, Business Bay one year ago, signing a Preliminary Sales Agreement. After making 3-4 payments (55% of total price) I received the final Contract to sign. To my surprise the area of the office was increased 25% and so it was the price and the Pmt Schedule modified, due to "construction regulations". Although the original agreement allowed for changes in design, area, etc., there was no mention to changes in the agreed total price. Am I entitled to a refund due to breach of contract by the Seller?

 

[TommyC]

Dear All, Please I need orientation.
I have purchased an off plan office space at Tamani Arts, Business Bay one year ago, signing a Preliminary Sales Agreement. After making 3-4 payments (55% of total price) I received the final Contract to sign. To my surprise the area of the office was increased 25% and so it was the price and the Pmt Schedule modified, due to "construction regulations". Although the original agreement allowed for changes in design, area, etc., there was no mention to changes in the agreed total price. Am I entitled to a refund due to breach of contract by the Seller?

According to Law 13 they can't charge more for INCREASED space. I believe that article is valid. In other words: You should not pay more than the initial price.

 

[Stephendxb]

Dear All, Please I need orientation.
I have purchased an off plan office space at Tamani Arts, Business Bay one year ago, signing a Preliminary Sales Agreement. After making 3-4 payments (55% of total price) I received the final Contract to sign. To my surprise the area of the office was increased 25% and so it was the price and the Pmt Schedule modified, due to "construction regulations". Although the original agreement allowed for changes in design, area, etc., there was no mention to changes in the agreed total price. Am I entitled to a refund due to breach of contract by the Seller?

Unless the law is again revised or re-interpreted, then you are covered by Law 13 article 12 which states:
"The area of a sold Real Estate Unit is correct. If the unit turns out to be bigger on completion, the developer may not claim the difference in value and if the unit turns out to be smaller then the developer must compensate the purchaser for the difference unless it is marginal in which case the developer would not be required to compensate the purchaser for the shortfall in the area".
Enjoy the extra space.....

 

[TommyC]

Unless the law is again revised or re-interpreted, then you are covered by Law 13 article 12 which states:
"The area of a sold Real Estate Unit is correct. If the unit turns out to be bigger on completion, the developer may not claim the difference in value and if the unit turns out to be smaller then the developer must compensate the purchaser for the difference unless it is marginal in which case the developer would not be required to compensate the purchaser for the shortfall in the area".
Enjoy the extra space.....

Give them one or two more weeks until they realize they will lose on this and I'm sure they'll approach RERA and there will be a new interpretation out saying that the investor will have to pay if the space have increased and the developer doesn't have to compensate if it's smaller. Not likely, but as experience shows, you never know...

 

[Stephendxb]

Give them one or two more weeks until they realize they will lose on this and I'm sure they'll approach RERA and there will be a new interpretation out saying that the investor will have to pay if the space have increased and the developer doesn't have to compensate if it's smaller. Not likely, but as experience shows, you never know...

You could be right Tommy.

The only law I would like to see is payments linked to construction.........

 

[paparulo]

Please does anybody know where to file a claim against a Developer? They sent me final contract to sign where they increased the area and the price in +25% of an office space I purchased one year ago. The Preliminary Sale Agreement did not allow for any change in the total purchasing price, so I consider this a breach of contract by Seller. I want to terminate the Agreement and get my money back (paid already 55%). I sent several written requests, but they do not reply.
Any ideas?
paparulo

 

[loai]

Grass-root action: Contact Form

Get the word out, every mail sent will count in the end. More coverage is needed on this!

good luck guys.. let me know how things turn out...

 

[memo123]

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

 

[shahmeer]

I booked 2 units in June 08. Does law 13 apply to me? I have paid 10% uptill now.
Plus all I'm given even after 6 months, are reservations forms. There is still no contract and not even an ESCROW Account after 6 months of buying in pre-launch.
Please tell me what options do I have.

 

[RERA Official]

RERA will respond to your questions

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

 

[jags]

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 called RERA so many times from UK.no one answers the phone when tranfered to the legal department. no one replys to the quaries through email.can you please open a thread to answer the all the questions in this forum. that would be a reassuring gesture.

thanks.

 

[memo123]

start a RERA thread

so you can answer our questions .

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

 

[shahmeer]

Dear RERA Official,

Jags is spot on when he says he hasnt got any response from RERA.
I personally have called and emailed a number of times. There is no reply to any of my email and its been more then 2 months I have been sending emails
When I call RERA directly, I'm given different answers by different officials, there is no definite answer.

We would all be grateful if you can answer our questions here.

Please tell me what options do I have in my case.

"I booked 2 units in June 08. Does law 13 apply to me? I have paid 10% uptill now.
Plus all I'm given even after 6 months, are reservations forms. There is still no contract and not even an ESCROW Account after 6 months of buying in pre-launch.
Please tell me what options do I have."

 

[Datum1m]

If you are a real RERA official, do you have a licence number and where are you based and what position do you hold?

I have two very important questions

1) Is the Developer breaking the Law by making it a requirement of my Sales Reservation Contract to pay money direct into is general business account and not the project escrow account?

2) Is a Developer legally allowed to sell the same units to too separate purchasers, one sale as been done under the terms of an MOU, where the original purchaser has the responsibility of making payments up to 30% of the sales contract value, should any secondary purchasers default on their payments under the terms of a Sales Reservation Contract. The Developer has been taking money from both the original and secondary purchasers at the same time and not making any payments into the Project Escrow Account. If the secondary purchaser defaults on his payments then the original purchaser gets the benefit of any payments the secondary purchaser has made once the secondary purchasers Sales Reservation Contract is terminated by the Developer. This is because the original purchaser just continues with his payments under the terms of his MOU and therefore gets a discounted unit at the expense of the secondary purchaser. I know that this sounds complicated and I hope I have explained it clearly enough, but the main point is can a Developer enter into two separate contracts for the sale of the same unit?

 

[zombie]

If you are a real RERA official, do you have a licence number and where are you based and what position do you hold?

I have two very important questions

1) Is the Developer breaking the Law by making it a requirement of my Sales Reservation Contract to pay money direct into is general business account and not the project escrow account?

2) Is a Developer legally allowed to sell the same units to too separate purchasers, one sale as been done under the terms of an MOU, where the original purchaser has the responsibility of making payments up to 30% of the sales contract value, should any secondary purchasers default on their payments under the terms of a Sales Reservation Contract. The Developer has been taking money from both the original and secondary purchasers at the same time and not making any payments into the Project Escrow Account. If the secondary purchaser defaults on his payments then the original purchaser gets the benefit of any payments the secondary purchaser has made once the secondary purchasers Sales Reservation Contract is terminated by the Developer. This is because the original purchaser just continues with his payments under the terms of his MOU and therefore gets a discounted unit at the expense of the secondary purchaser. I know that this sounds complicated and I hope I have explained it clearly enough, but the main point is can a Developer enter into two separate contracts for the sale of the same unit?

I would think the Developer is breaking the law on both counts, even if the project was launched before the Escrow Law, the Escrow account should have been set up by now, & it is definately illegal to sell the same unit to 2 different buyers.

 

[dbxdude]

So what happened to this group and its fealess founder? Silenced? I havent heard anything for ages.....