RERA - Complaint site

Discussion in 'Dubai property' started by Roshan, May 4, 2008.

  1. Roshan

    Roshan New Member

    Attended a Dubai property group meeting held today where RERA addressed the procedure for transfer.

    What RERA says is that the transfer fees applied by a developer for transfer is illegal. The developers misguide the investor by calling it administration fees.

    A percentage of the sale what they claim is termed as illegal. Very soon RERA will introduce a fixed administration fee that a developer can charge.

    In time to come no longer a developer can charge a percentage of the sale fee but will be able to charge a fixed fee.

    I highlighted the delays I experienced on my investment where having paid 60% of the project value with only 10% of the project complete. What RERA says is get the problem to them. I told them of the cancellation notice that has been served to me. RERA says that they have no right to cancel the contract.

    I have been told specifically not to make any payments directly and tell the developer future payments will be made to the trust account, meaning ESCROW. In time to come no developer can ask for direct payments. I have ben told to send a fax to the developer mentioning that henceforth all payments will be made to trust accounts.

    Let's see what happens.

    Meanwhile I raised the problems that a lot of international investors had with developers. I was told that they can address their grievances to info@dubailand.gov.ae

    If anyone has any grievances, they could probably email RERA on the above address and see what happens.

    From what I see everything will be streamlined in time to come and RERA means business. Had a chance to interact one on one with Mr. Marwan Ahmed Bin Ghailita ( CEO of RERA ). A man of action and with a vision to streamline the whole process in Dubai.

    Hope this info is of use to you guys.

    Regards

    Roshan
     
  2. richie83

    richie83 New Member

    that is really interesting to read, good work roshan!

    regarding transfer/registration fees, if you're contract already stipulates that there is a percentage fee (eg 2%), would this still stand regardless of any new rules coming in? would a new rule only be valid for contracts which are drawn up after the rule is introduced?
     
  3. Roshan

    Roshan New Member

    I would strongly recommend you to go RERA. They have a complaint desk and they seem to be very pro active.

    I am taking both my investments to RERA and ensure that I make payments based on construction.

    Regards

    Roshan
     
  4. Sixgun

    Sixgun New Member

    Roshan,
    Just so you are aware (this is no complaint towards you) I contacted that e-mail address with a few enquiries and never got a reply from them.
    Couple of weeks ago, I guess they could be snowed under though.
     
  5. Investoman_uae

    Investoman_uae New Member

    Roshan,

    Oh I was there, it was really embarassing for them. People kept asking questions and the guy couldnt answer them properly so he referred them to the head of the lands department lol :D

    Man they were brave to say that Emaar are doing something illegal (indirectly) lol.

    The first part of the conference talk was interesting... everything is now done through the internet dadadada... 2008 we are keeping up with technology ... then the second part was were things started going pearshaped lol.

    Inv.
     
  6. Roshan

    Roshan New Member

    Inv,

    I went to RERA today only to be asked whether I have an appointment. The appointment is rescheduled for Monday. I came back Dhs 5 poor as I had put a parking ticket for 2 hours anticipating a marathon session :D

    Watch out for this space :)

    These meetings are more for networking than anything else. Be assured I will be there for the next meeting.

    If you were there, you must have seen how the Nakheel rep got taken left, right & centre.

    Regards

    Roshan
     
  7. Roshan

    Roshan New Member

    I will try and give you another address.

    Roshan
     
  8. Investoman_uae

    Investoman_uae New Member

    Not just him, even the Dubai Lands Department guy and the speaker and everyone who was sitting in that far corner :D I wonder why there werent any Emaar, Dubai Properties, Damac etc guys present there.

    Let me know how your RERA meetings go! I am curious to understand what they are up to. They seem to be creating alot enemies in the development scene lol.

    Inv.
     
  9. mirpuri

    mirpuri New Member

    Hi Roshan
    good work pls you can let us know when & where these meetings are held?

    Mirpuri
     
  10. Roshan

    Roshan New Member


    I do not know when the next one is, but I will let you know.

    Roshan
     
  11. Roshan

    Roshan New Member

    It's time the developers need to geta taste of their own medicine.

    Emmar, Dubai properties must have got taken in the previous meetings :D

    Damac might be the centre piece on each table to be taken left, right, centre.

    Are u a real estate agent ??

    Roshan
     
  12. Investoman_uae

    Investoman_uae New Member

    No, by profession I am a qualified chartered valuer from the RICS. You know all those 100s of properties bought by investors on a weekly basis? We value a portion of them for the banks in order for them to give mortgages, 80% of the value we tell them. But I specialise in commercial valuations.

    I am pushed on a daily basis to be more like an agent because I know what a property is worth and people are asking me to find them this and that.

    I am also an investment consultant... I remember my uni professor used to tell us you have to be a valuer first before you can advice clients on what to buy, when, ... good investment opportunities . etc.

    What about you? What do you do?

    Inv.
     
  13. mpat

    mpat New Member


    Dear Roshan .

    I hope u r fine

    I got a request to make
    .
    When you go to the next meeting at RERA,please check whether there is any regulatory body working to ensure the quality of the work,other than Dubai municiaplity ?
    I was in sc today with more time to spend there and found that there are cracks on one of the contractor's work,fortunately its not on my investments, but I m especially more worried with the amount of work (I call it MASS PRODUCTION ) tht is going on in the area,which might afffect the quality of the job. Ultimately it should not happen that we are living in Dubai with stinks all around the building and no proper arrangments.

    Thanks and Regards

    Your friend.
     
  14. Investoman_uae

    Investoman_uae New Member

    If it is a serious structural crack, you have to alert the developer asap.

    But interesting, what can one do, if he invests in a property then the finishing is very poor and not as promised by the developer? Any regulations on this?

    Inv.
     
  15. Roshan

    Roshan New Member

    I work as a Senior sales engineer for an air conditioning company. Probably we can meet up. Dubai chapter is on. You could add a lot of value to the discussion. Can u pm me your email address so that I can advise you when we meet.

    I have this strong gut feeling that Dubai property is over priced. There is a correction round the corner, could be a major one. What's your take on that ??

    Regards

    Roshan
     
  16. Roshan

    Roshan New Member

    Dear mpat,

    I must hand this out to you. Never have I seen anyone who visits sites and gets totally involved in a project. However do not forget the developer has to guarantee 10 years on the development.

    On the next RERA meeting, I will certainly find out.

    I did not like the attitude of the lady I was supposed to meet at RERA. However I was really impressed by Mr. Gelaitha ( CEO of RERA ). What can one man do if the others do not work in tandem.

    Your dear friend.

    Roshan
     
  17. Investoman_uae

    Investoman_uae New Member


    Yes, I also think there will be a correction, the market will mature as more laws and regulations are introduced. Also I hear they are thinking of introducting some form of taxes like VAT for example.

    Anyway, what you must know is that there is every factor to suggest that this market will continue to be strong. The Western Markets are declining, so Western and European investors are flooding in to Dubai.

    Its one of the best places to live in, everyone wants to live here, and you have a oil rich country which isnt shy of producing spectacular projects, never seen before. World's Tallest, World's Biggest, ....etc. People like that sort of thing,...its good to live in a place out of the ordinary.

    Plenty of banks lend 90%+ of the property's value, and the repayments are within people's capabilities. Its not like in the UK for example where banks lend to people who are already struggling with prices of food, petrol, taxes, property taxes, National Insurance, ...etc etc so this system failed, people couldnt cope anymore,.... same in the US.... they borrowed more than their capability to pay back.

    So its looking good for Dubai and the Gulf Markets also.

    The only way it will mature and go through a correction is when it gets regulated. As you've seen from the last RERA conference, its only now they are beginning to introduce concrete property law.

    Anyway I am hungry and when am hungry I cant think anymore lol.

    A PM is on its way.

    Regards,

    Inv.
     
  18. memo123

    memo123 Member

    Thank you Roshan for your hard work and effort to educate us
    I already told my agent who refused even to give me any papers showing that i bought the property until i pay at least 30% . I already paid 15 % of the value to an account in the owner name and not escrow account , i made my checking around find the developer number, when my agent in London refused to give me any info on him. and I told them that they wont see a penny without showing me papers of ownership with developer signature , showing me exactly what i bought
    it has been 3 weeks and he has done nothing , and i wont pay .
    i also have another property , the agent claims that this is an escrow account and i am 100% sure it is not escrow . it is written in the name of the owner of the building in a sharja bank .
    I have decided that from now on I wont make any payment until i have proof that my money wont fly with the developer overnight
    Today i confronted one agent when he wanted to charg me 2% transfer fees and told him that , that is illegal , he pretended like he doesn't know and will check tomorrow
    thank u Roshan again
    and keep up the good work
     
  19. Roshan

    Roshan New Member

    Hey, you are most welcome. I was very happy to see that you benifitted from what was posted. Gives you a sense of satisfaction and your experience is a motivation for others to follow.

    WOW...I love it on how you stuck your ground. I will be meeting RERA on Monday and will have more insight on how they will handle cases.

    Frankly, I was impressed by the CEO while the staff are yet to impress.

    When going in for investments. Ask for 2 numbers.

    RERA approved developer number which should be cross checked on the RERA site.

    Trust account number and trust account partner ( always a bank or a finnance house )


    Regards

    Roshan
     
  20. mpat

    mpat New Member



    Thanks Roshan,Actually I learned it from you, you said that real estate inv is like a baby.So I m doing it that way.

    I will be waiting for the out come from your RERA meetings,Pls dont forget to discuss my issue.

    Thanks my dear friend
     
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