Looking into development in Ajman

[financier888]

financier888,
Thanks for ur reply. I ve decided to send an email to BL properties at ask them how much will i lose incase i cancel and this the reply I got 'if you don’t want continue the payment and cancel the unit by the law 30% of total amount is forfeit so you will not get back anything '.
!!! I Thought the law of 30/70 only in Dubai, and howcome in the reservation form they said incase of cancelation, 10% will be taken? I send another email for clarification. I feel i cant trust those people anymore

You are correct. That law ONLY applies to Dubai. If you go to court in Ajman they will rule based on your written contract. You can confirmt this with ARERA. (that is UNLESS Ajman has passed a similar cancellation law like Dubai. This you have check with ARERA. You may inform them by email is that the law they quote is based on Dubai and NOT Ajman and see what they come back on. YOu can also state that Ajman municipality upholds what is stated in your contract.. good luck

 

[faisal]

I had Booked an office in gold crest business vista located in Emirates City,in 2007 they have not started their work until now in fact they have informed in reply of my mail that they are going to start the project with a delay of atleast 12 more months and until that i can delay my payment Scheudule, where as i need to get my money back as the project is already late by 12 months and another 12 months means it will be delayed by 24 months, as we the both the parties have not signed the Final contract where do i stand under the law as they informed that they can forfeit an amount upto 30%, whereas i am not sure about this law prevails in Ajman, where can i get the correct information for on going law which can help the investors.

 

[NOOR_ALI]

faisal,
The new law in Ajman is not yet approved, I have bought in Royal oasis with BL properties and i want to cancel now and they are saying i will lose 30% of thee unit price. I called ARERA just two days back and i told them my situation, they said Ajman law is not approved so the developer must follow the terms and conditions on the reservation form or the contract and if they refuse to follow then the buyer must get a layer.

 

[NOOR_ALI]

lawyer not layer..

 

[DrPill]

lawyer not layer..

I try to get out of the deal with Goldcrest Dreams because construction to complete has been delayed until 2011 from 2009. The reason they're saying is not getting electricity from the government...now sure how accurate this statement is.

I had so far paid 30% and cannot get a penny back because of their terms. Any one has any idea what alternatives people like myself can take?

Should I just believe them and continue payment or just take the loss?

 

[NOOR_ALI]

DrPill,
I have stopped my payments for BL properties. I payed 15% so far. They dont have an escrew account yet. I advice you to check with them regarding the escrew account and to stop payment if they havent. I spoke AREA and they told me to stop futher payment till the company register with the AREA and open an escrew account.

 

[DrPill]

DrPill,
I have stopped my payments for BL properties. I payed 15% so far. They dont have an escrew account yet. I advice you to check with them regarding the escrew account and to stop payment if they havent. I spoke AREA and they told me to stop futher payment till the company register with the AREA and open an escrew account.

It's too bad I found about the delay in construction after I had paid 30% already.
I received a letter in the mail saying they're trying to get registered with ARRA? and trying to also open an escrow account.

I was told if they're not registered and do not have escrow, the money they're collecting is illegal. Perhaps on this basis, we can try to get refund?

This is so frustrating...

 

[ajmanflat]

Gentlmen
I have to say, its our fault as investors. We allowed the developers to play with us, because of our greed. We walked the path without asking questions, gave them 30% so far without knowing anything, and now we are complaining. I bet not many of us even botherd to go see the site of this crap where its happening and how far a long they are.
Wait until you see the contract, you have no rights whatsoever, per ARERA, they will issue new contracts even for people who signed ones already, because the current contracts are crap, no rights whatsoever, its all about the developer protecting himself, even after the turnover of the unit.

Now I am going step further, I have not only stoped payments, I am not paying ever again until they revise the payment schedule to link construction to payments. When they build 30% of that building I will start paying them again, before then, I wont, or we are going to court.

Dubai developers, the more experienced ones are already cutting 30% of the price..read this.
UAE developer cuts prices by up to 30% | Real Estate

Now the developers in Ajman are out of control, unless ARERA interfes and make things right, I will not pay.....the following are required:
1- cut in price 30% like dubai developers
2-revised payment plan allows for delays in payment to accomodate the current world crisis
3- revised payment plan to link construction progress with payments, so we wont end up in this bad situation again, your paid 30% and the building has less than 1% progress.
4- document in the contract that electricity is the developer responsibility, same for water and swerege
5- any delays in construction, the developer pays interest on the money.
6- 25% payment on turnover of the unit
7- 25% payment after turnover.
8- during construction, only 50% should be paid.

food for thought.

 

[kpaysa]

ajman one flats

i have purchased 3 flats in the ajman one complex and have upto now only paid about 20% in total. the value of GBP to AED has fallen considerably to when i initially went in.

My questions are:

1) can i simply pull out and claim the money back that i have paid to date.

2) if i cant claim all the money, what percentage would i lose?

3) can i transfer all the money into one apartment from the others and keep just one flat?

4) any ideas on how to sell these flats on to another investor?

5) what are the consequences for not keeping up payments?

6) who do i inform that i wish to no longer proceed with these flats?

looking forward to some positive answers, thanks for your time

 

[financier888]

i have purchased 3 flats in the ajman one complex and have upto now only paid about 20% in total. the value of GBP to AED has fallen considerably to when i initially went in.

My questions are:

1) can i simply pull out and claim the money back that i have paid to date.

Unlikely. You need to see what the terms and conditions of your reservation form or sales agreement states as it relates to 'cancellation'

2) if i cant claim all the money, what percentage would i lose?

Again, this will be based on the terms and conditions of your sales agreement. Even if the provision allows you to cancel with a penalty, you may have a hard time collecting the refund - depends on the developer

3) can i transfer all the money into one apartment from the others and keep just one flat?

This would be the best way to go to salvage your investment - rather than lose it all - you should contact the developer and tell them you wish to consolidate - if they are smart - they should assist you. If they are not well capitalized and think they may not complete the building - they will insist you pay on all three hoping you will default and then of course, keep you money

4) any ideas on how to sell these flats on to another investor?

You can try posting them on here under an Ajman thread but be prepared to sell them at a loss - IF you can find a buyer - also try listing them with another broker in Ajman. It will depend on the stength of the developer you purchased from. You may get lucky and find a buyer on here as I have read many posts from buyers looking to buy in Ajman... Take a discount and recapture some of your funds

5) what are the consequences for not keeping up payments?

Losing EVERYTHING you have paid leading to depression

6) who do i inform that i wish to no longer proceed with these flats?

You'd have to notify the developer that you are cancelling the contract - be sure to read the language and understand what liability you have, (if any) when you cancel - this should be stated under a 'cancellation provision'

looking forward to some positive answers, thanks for your time

Not sure if my answers can be considiered 'positive' as this is would be a 'subjective' value judgement. However, my reposnes are 'factual' good luck!

 

[Ajmanprop]

To add to the above message;
In my case - with regards to cancellation the developer (Sweethomes) - is pointing to a provision in the new Ajman ARRA law, that will allow them to retain 30% of the purchase price. They do this by "not" accepting/processing cancellations now. My contract actually states a refund of 50% of the paid amounts... however, the developer is picking the new law since it is more favorable to them.

They're doing this while simultaneously insisting that I pay to a non-escrow account....which is contrary to the new law, and the new law also states construction linked payments.... both of which are not favorable to them. For these two areas, they refer to the Sale/Purchase agreement.

I have resolved it for now - but only because I engaged a lawyer.... which gets expensive...and no results are guaranteed.

 

[financier888]

To add to the above message;
In my case - with regards to cancellation the developer (Sweethomes) - is pointing to a provision in the new Ajman ARRA law, that will allow them to retain 30% of the purchase price. They do this by "not" accepting/processing cancellations now. My contract actually states a refund of 50% of the paid amounts... however, the developer is picking the new law since it is more favorable to them.

They're doing this while simultaneously insisting that I pay to a non-escrow account....which is contrary to the new law, and the new law also states construction linked payments.... both of which are not favorable to them. For these two areas, they refer to the Sale/Purchase agreement.

I have resolved it for now - but only because I engaged a lawyer.... which gets expensive...and no results are guaranteed.

It sounds like they are 'selecting' which laws they will follow - if it suits them to keep your money they claim to go by one law and then, disregard the other laws as it relates to contruction linked payments and escrow? they can't have it both ways!!

In regard to the new ARERA laws - I am not sure if they have been 'passed' into law yet - usually these decrees are issued and some time later - become actual laws.. no doubt, your atty is taking action based on your original contract, which if I understand you correctly - will allow you to cancel with a 50% refund - if you file quickly - the court should rule in your favor.. It will be interesting to see what position the magistrate will take under the circumstances and actually act as a guardian to protect the investors... good luck to you and please keep us informed as the developments which will represent a true picture reflecting the disposition of the Ajman legal system

 

[talldark]

Contact Details for ARERA

Hi - does anyone have contact details of ARERA. There is lots of talk about them, but no published details as far as I can find.

I am coming over to Ajman to sort out my 2 properties and want to actually walk in and pester them / contact them by email / by telephone to get a straight answer on a few questions.

Cheers

 

[Kjarkata]

Does any one know the latest status of Ajman Boulevard (AA Property). Is the project still on or cancelled?

 

[Kjarkata]

Only fools will now invest in Ajman. The current situation is that most of the developers have vanished with hudge sum of investors money and no one including ARRA has been able to bring the situation under control, I assume now the ruler of Ajman, His highness the king of Ajman should jump in and save the investors who urgently need his help and support.