TAMANI ARTS Offices Business Bay: Change of Developer!

[farshid]

ratio

My ratio of gross to net is 210% !!!!!

 

[farshid]

tamani

Now when you search Tamani arts , this forum comes up first. We have to keep it that way by being active on it.
Farshid

 

[Oshkosh]

Thanks Paparulo for your initiative in setting up this forum and thanks to all members for their great contributions. I just received my 2 contracts for the 2 office units in Tamani Arts. Just like everyone else the floor area was reduced from 573.72 sq.ft to 314.31 sq.ft for each office unit. In my case, I never had a signed SPA with the old developer because of a major discrepancy in their records for the payments I made to date. I refused to sign the SPA at that time when KM Properties was proposing an increase in the floor area, because of the disputed payment amount and also because there was no completion date stated in the SPA. The only signed document I have in my custody is the preliminary sale agreement where the unit area is 53.3 square meters and the price for the office unit is 1,340,095 Saudi Riyals.

I agree with everyone not to sign this new SPA with the reduced floor area. I believe the law is on our side. Article 12 of Law No. 13 of 2008 states the following: "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". I believe a reduction of 45% in floor area is definitely not marginal and the new developer has to reduce the price of the sold units by at least 45% if he wants us to consider looking at the new SPA. Of course there are several other clauses in the new SPA that I don't agree with and I will highlight them in my next message.

Best Regards

 

[farshid]

tamani

Thanks Oskosh for your post.
Farshid

 

[paparulo]

Units currently for sale

Dear forum members,

Please have a look at the office spaces currently for sale at Tamani Arts and its current prices.... food for discussion.
paparulo

 

[paparulo]

Went to RERA.

The chap at the registration section was already aware of the problem.
More from B2B Tower than the Tamani Arts, both initially launched by
KM Properties in Business Bay.

However, in NUTSHELL:

DO NOT sign the revised SPA at all if not acceptable.

One can ask for the full refund of the funds paid OR
if one accept the reduced area then ask for the difference
in price.

RERA will only intervene when the project is completed.

Make sure stick to the original SPA and keep it safe along with
all the payment receipts.

The developer can only allow 0.10% of the gross area to the
common hold property as my original SPA states.

The above were the core of the suggestions given to me.

I will post more as I find but we need more unit holders to come on
the forum. One can encourage the selling agents to reveal
other unit holders identity they sold units to and ask them to join
the forum.

For construction update/progress report see Dubai Land registry/rera site.

Dear Kalu,

Did you ask RERA about the new developer not showing on their list of approved developers?

 

[paparulo]

Dear Paparulo, Glad to find out about this forum. I have one unit and received the new contract that I will never sign. I have other two friends who have 5 units. Size cut has no formula since each investor got different size cut using the excuse of common area. Interestingly enough discount is also given with different figures to each unit, just randomly I guess. I have no intention to sign whatsoever and will seek a group to join for legal claim against original developer since new developer has no credible status even in RERA.

Dear Emad,

Welcome to the forum and please tell your 2 friends to come and join the group in order to get more info / be bigger in case we take some joint action...

 

[Oshkosh]

Horrible Investment

Dear Paparulo,

It is very disappointing to see this kind of prices for units offered for sale at Tamani Arts if the data is accurate. The problem is that we are not aware of the deal between the old developer and the new developer and whether the project including the land was auctioned through RERA and sold to the new developer at a major discount. When I look at my costs in this investment, it is horrible. The office unit cost me around AED 2,288 per sq.ft in 2007, while similar units are now offered for sale at the price of AED 1,400 per sq.ft. To make the matter even worse, the cost per sq.ft after reducing the floor area in my case is around AED 3,909 per sq.ft. In other words, with the current prices, I believe I have already paid more than the current value of the office unit. So there is no point of signing a new SPA with this developer, and may be it is just better to default on future payments and let the developer take 30% of what I have already paid. What do you guys think?

 

[farshid]

Tamani

What is this 30% ?
Farshid

 

[Oshkosh]

Article 11, Law No. 13 of 2008

Dear Farshid,

Here is the answer on the 30% as per Law No. 13 of 2008:

Article (11)

1. In the event that the purchaser defaults on any term of the contract he made with the developer for the sale of the Real Estate Unit, the developer should notify the Department accordingly and the Department will then give the purchaser 30 days notice to fulfill his contractual obligations, by hand, registered post or email.

2. If at the end of the period referred to in item 1 of this Article the purchaser has not fulfilled his contractual obligations, the developer may cancel the contract and repay the purchaser his money less a deduction that does not exceed 30% of the monies paid by the purchaser.

 

[bokr]

Dear Tamani investor forum,
Very good initiative to setup this forum. I am also in the same boat and has invested in 2008 as second buyer in unit with 1205 gross sq.ft. AED 2m of which I have paid 90%. My local legal advisor had meetings with KM Properties and new developer back in Nov/Dec 2013 and were promised full discount of last payment and revised SPA within a month. Finally I just have received this new SPA and I have never in my life seen such a vague SPA in favor of developer!! Net sq. ft. 646 or c50% common area, only 2% disount of remaining 10% and rest 8% to be paid in 6 installments, developer can make 200 sq.ft. without compensation to buyer, if total developer costs are more than 15% over budget, developer can ask investors to compensate, 18 months delay without compensation etc etc etc. Absolutely not acceptable terms and if you also have these conditions DO NOT SIGN SPA and let us stick together. I have a good legal advisor I can recommend to run our case in common ??

 

[Oshkosh]

Dear Bokr,

Welcome on board. It is nice to have you among our forum members. If you know any other investor in Tamani Arts, please invite him to join the group. We are all facing the same problem and we need to work together as a team to achieve our common goal. Of course your contact with a legal adviser is certainly a plus to the group, because we might need his legal opinion very soon, and share the cost for his legal fees. Thanks

 

[paparulo]

Developer details unknown

Dear (affected) Tamani investors,

I´ve contacted another 4 office owners that would like to join for a legal consultation, although not willing to participate in the forum, as they are reluctant on who have access to it, etc (risk inherent to any forum..).

I think the first step is to know for sure who we will be facing to:
I have contacted 4 different real estate agents to get info as a potential buyer on the Tamani offices available for sale. All four have stated that Developer Properties LLC "is related to the government" that came to rescue some stalled project in Dubai...
As I mentioned before, I could not find anything about that topic on the internet, and the developer is NOT in the list of approved developers on Rera website. HOWEVER, one of the real estate agents contacted Rera vie email and got a confirmation on that the developer is approved, plus he provided a couple of names and contact phones for them.. Anyway there was no mention about government origin, nor why they are not in the list of approved ones.... I´ve got copy of the referred email, with the name and contact of the Rera person consulted.

I think it is necessary a personal visit to Rera by someone in this group living in Dubai, as we need to know for sure whether or not we are to discuss our concerns with a government sponsored group.. Obviously our odds of getting any change to the unacceptable new terms would be very different.
Comments welcome!

 

[farshid]

tamani

Dear paparulo
Thank you for your comments. I am doing some investigations myself, but I believe that the developer is connected.
I will e-mail you regarding this.
I have asked many questions from them but still waiting for some kind of answers.
Farshid

 

[Oshkosh]

Dear Paparulo

I can understand your concerns and the dilemma we are facing with Tamani Arts investment. The owner of the Developer Properties LLC is not only related to the Government i.e. a cousin of the ruler of Dubai, he is in fact the head of the Land Department in Dubai. In other words, RERA and all the real estate rules & regulations are under his authority. In the West this could be a conflict of interest situation, but here in our region it is a common practice to see royal family members holding governmental as well as business positions at the same time.

So, what do we do? Accept whatever they tell us in the new SPA? I believe there is nothing wrong in consulting an experienced real estate lawyer and getting his legal opinion. After that we will evaluate the risk and decide the next course of action.

I would like all forum members to participate in the discussion and provide their comments and feedback. Thanks

 

[farshid]

Tamani

Hi to all.
I am told that no work is being done in the property. Can anybody living in UAE check it?
It seems that nobody wants to sign the new contract.
Someone suggested appealing to RERA but again the person who is advising me told me that RERA will not get involved at this stage.
Farshid

 

[Abdultaiyab]

Work has resumed at very slow pace on stalled projects taken over by IAH from KM Properties. Quality of work is Grade B. At present, brokers are selling off units located in B2b, Tamani Arts and Park Lane at low price based on net area. Investors who have purchased on gross area immediately will give up on 50% price. Hence, recommendation is not to sign revised SPA. Further, revised SPA is Developer friendly and comes with rigid clauses. I represent investor and follow up closely with Dubai Land Department on projects of KM Properties. for more info write to me on - FOR FURTHER INFORMATION PLEASE PM THE MEMBER.

Note from moderators: No direct advertising or contact information is allowed on the forum as this will only attract spam.

 

[farshid]

tamani

Hi Paparulo
No new comments from anyone. !!!
Has anyone got further with the new contracts?
Regards
Farshid

 

[farshid]

Tamani

I am advised by someone who is working in real estate in Dubai, that I must go to Dubai Land authority and open a case. They will look into the dispute and give their decision.
Has anyone else had any progress in this matter?
Farshid

 

[amirz]

Just stumbled upon this forum and very glad that there's an avenue for investors to share information and hopefully make a better decision. I represent 2 other investors in this forum.

We recently received the new SPA and the net area was reduced by 50% relative to gross. I wrote a long letter to the new developer but haven't heard back yet. We are open to the idea of hiring legal counsel to address the issue.

Amir

 

[farshid]

Tamani

Hi Amir
We all have written to them and there has been no replies. As I said in my last post, I have been advised to open a case in courts in Dubai, and they will look into it. But it seems that we should not sign the new contract. My net area is actually less than half of the gross!! I don't know why for a while everyone on this board has gone quiet.
Farshid