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Need more help than the kids in africa !!

Discussion in 'Dubai property' started by ngn97141, Feb 17, 2009.

  1. ngn97141

    ngn97141 New Member

    Hi guys, Need some help.

    a) I bought a 1 b/r unit in Motorcity in phase 2 @ 866/sqft. Not the worst buy in Dubai I think.. I have paid 40% as yet. As most of u must already know, its coming up for handover in May/June 09 and I have to pay the balance of 60%.

    I went through the reservation form and it clearly states that if I dont sign the sale contract within 15 days, UPP will refund the monies paid less 2% and I will lose all rights over the unit. So I went to UPP to find out if thats possible and read out the clause to them.. They turned around and said to me that
    1) They have the right to refer to RERA and will get protected by RERA.. hence might refund the monies paid only when they resell the unit. ( Does not say so in the Reservation form )
    2) They might return only 70% of the monies paid ( Again hiding under the Reras umbrella )
    3) They might chose to not return a single penny since I will lose all rights over the unit and the title deed wont exist and the apartment will still belong to UP.

    My question here is.. Can UPP do this ? I mean ' Is the Rera Law above all laws and will it overrule the clause in the contract ? ' or should I consult a lawyer and take it to court ( Not that I will ever win against these giants ). Pls advise.

    b) I bought a 1 b/r in Remraam phase 3 as well. The Op was about 1045 and I paid a premium ( worthless ). Have paid 20% as yet and they are asking for the next 10% ( which they are ready to negotiate and have offered me to pay 5% now and 5% in 6 months ).
    Again, theres a clause in the contract that they themselves pointed out which says that if I default for over 3 months, they will cancel the unit and refund all the monies paid ( OP only ofcos.. no premium ) less 10% as charges.
    But once again these guys have also referred me to RERA saying that they will only pay me back once the unit has been resold. ( Once again not mentioned in the reservation form or the sale contract ). When i debated and asked them if they were above the law..The lady went right at me and said that 'They are the Government and hence they are the law' Again, Pls advise. I am also wondering if other Remraam buyers are going ahead with the payments or should I just default and wait for them to resell ( In a gazillion years if they can) and then pay me the money less 10%.. They claim that construction is in full swing. Or does it make sense to pay as the risk will always be of 10% of whatever I pay them (as they will refund when resold blah blah).

    c) I got myself stuck into a buyback deal with Emyproperty Development that is in Sultan Business Centre near Lamcy Plaza. I bought a 2 b/r unit in Bab-Al-Badr in Marjan island in RAK @ 1150 per sqft (Really dumb of me I know) and paid 20% of the OP and was promised a 25% return in 6 months. My MOU clearly states that I am not liable to make any further payments. It also states that if the chequr bounces I can sell the property to recover my money ( Not an option at the moment)
    The date of the PDC was 07/02/2009. The developer has requested me not to present the cheque as he is short on liquidity and so I havent yet. He has asked for an extension of 2 months and is ready to pay a further penalty for the same. The Bab Al Badr project on Marjan has not begun construction as yet as he has still not gotten the land from RAK Govt. I have seen the island and dredging international was stilling dredging the island till 2 weeks ago.
    He seems like an alright guy except he has blatantly told me that I can go and bounce his cheque if I want and refer the case to Rera as he will get more time from Rera to pay. After a lot of negotiations, he has agreed to give me some additional security
    1) A letter from his lawyer that states that he has a guarantee deposit with Rera which is due to be released in April and that as soon as that happens we will be the first ones to be paid from that deposit.
    2) His completed properties in Arabian Ranches (partially mortgaged hence 1st lien lies with bank) on MOU ( not transferred in my name ) that states that if he does not pay by April 15th, we will mutually agree to sell his villas at market price and take our money. Again, I will have only second lien on the property and I dont know if this is legally enforceable as it is only an MOU ( Cannot notarise as properties are partially mortgaged)

    My question is

    1) Should I bounce his cheque and file a lawsuit ?
    2) Should I wait for 2 months and what option should I take ?..
    3) Any legal advice anyone has to offer me here ?

    What is really pissing me off here is that these guys are actually overlooking and overriding the clauses in the contracts signed by them and me as now they have RERA protection.

    Anyone have any similar experiences that they wanna talk about so as to resolve my issues. Would greatly help out.

    Oh and yes, any people here that bought in the Mansions project by emaar in the burj area ? I am the proud owner of 3 apartments there. I was told its a royal project and all apartments will face the burj and the largest fountain in the world. ( I guess at the price I bought I could have made the largest fountain in the world right in my backyard)
    Would love to hear if anyone has any good news of it getting cancelled.( OP was about 5000-8000 per sqft ). Would also appreciate if someone can help me negotiate with Emaar to downgrade the apartments to 1 b/rs or studios. Pretty pls help a brother out :D


    Yes I own the crappiest properties in town ! I know ! I know !
  2. memo123

    memo123 Member

    I have some experience in the buyback , the developer in your case sounds honest , he didn't flee the country or gone into hiding , he is showing you good options that he will pay you , hiring a lawyer will cost too much money and the case will take forever , it seems he is open for dialog , so give him the benefit of the doubt.
    I wish I can say the same for myself.
  3. financier888

    financier888 New Member

    1) A letter from his lawyer that states that he has a guarantee deposit with Rera which is due to be released in April and that as soon as that happens we will be the first ones to be paid from that deposit.

    check with RERA about this
  4. Saim

    Saim New Member

    Any good news?????

    We made the blunder of investing in the Mansion project. Emaar has already bullied us into paying 20% and now they are demanding the next 15% installment due as of today the 1st of March!!!

    We inspected the site. There is a big hole there alright. I think in technical language they call it deep excavation. Keeping in mind that the tower is supposed to be 60 storeys high, is it not unfair of Emaar to demand 35% of the price when not even the excavation stage is complete yet?

    We requested them for a different payment plan linked to construction phases. They refused. We requested to flip properties, they refused. We requested for a decrease in the OP, they refused. We requested for extension of the third payment, they were benevolent enough to offer us an extension period of one month provided we pay 5%!!!!

    If there are any other investors out there who have managed to get some sane options from Emaar, pleassssssssseeeeeee contact me at 050-8605880

    I shall be eternally obliged!!

  5. georgihh

    georgihh New Member

    a) Pay the balance – at least the OP price is not that high
    b) Lost – don’t pay and open a case against them
    c) Ask for your money back (no profit) immediately. Or at least a portion until April
  6. davidps

    davidps New Member

    RERA will not allow them to retain all of your money and the reservation form should prevail in RERA and in court. However - and this is a big one - just because they will agree to return your money, doesn't mean they will do it (or have to do it) in the near future. The OP is decent, keep it.

    Again, even if your documents state you will get a refund, they do not state when and how. This is a key flaw (or advantage, depending on who you are) in most Dubai SPAs - they are very vague and do not describe the mechanisms of refund in detail, hence allow developers to use this vagueness to their advantage.

    1) Yes.
    2) No, bounce the cheque, then you will have more leverage.
    3) Don't do this again.

    Ouch. Btw, don't dream of getting your cash back even if the project is cancelled - you will be getting a credit note that will allow you to buy other overpriced Emaar property.

    Yup, you sure do.
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