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What is the best way to break an mou

Discussion in 'Dubai property' started by memo123, Jan 11, 2009.

  1. memo123

    memo123 Member

    at minimal losses as my develop has done nothing collected an average of 55% on all his buildings and after 10 months there is nothing is sight , not even piling
    any one on this blog please I am open now to all suggestions
    I just want this ................... out of my hair .
  2. Sixgun

    Sixgun New Member

    Depends what you mean exactly,
    1) are you willing to just walk away and accept your losses, but don't want to be chased for anymore.... or
    2) you mean you want to try and get a full refund (and who wouldn't)

    You dont state what % you have put in yourself so hard to make a judgement, but whatever your situation, i would recommend a face to face meeting with your developer, and second recommendation is keep any threats well back until you believe you have ran out of all options.

    Everyone is different of course, but I found with Profile that a "firm but polite" stance worked. I had an arsenal of printed e-mails they'd sent me, to back up my threats (which i had tucked away) , but fortunately i didn't have to use them.
  3. PropGuy

    PropGuy New Member

    Is it triplanet?
  4. naxal

    naxal New Member

    In such situations ,I thank my God that I got involved in Dubai Lagoons coz before handover of the unit (studio apt) ,I would have just paid a fixed 50% of the unit price so THREAT is limited !!!
    Guess the main problem is that I will have to carry this s**t on my shoulders all through the ordeal .
    Last edited: Jan 11, 2009
  5. memo123

    memo123 Member

    1-If the developer is using our money to pay for the land for the land , then we should be part owners of the land , and not only the unit or built up area.
    2-also building materials are 70% lower then when they first evaluated the project and sold it to us at huge premiums , so they are literally making huge unrealized profits just from the OP .
    3-If the developer claims that the property is worth much less now because of the credit crunch , OK fair enough , that is compensated by the devaluation of the commodity prices and building material at which he is going to build . And most importantly if he does claim that the unit prices are much less , then let him change the original price and all will be happy to pay less , we will have some sort of trust built and we will all cooperate with the developer knowing that he is working for every ones interest . For we all know that if he builds now , it will be much cheaper than 4-5 months ago .
    4-added to that he has been setting on our hard earned needed cash, printing interest accrued and delivering nothing but sand that was already there .
    Hence , what ever excuse they give you , they are still printing it .
    So all in all , yes i have the right to demand back full refund
  6. Sixgun

    Sixgun New Member

    Well you've convinced me, but unfortunately I'm not the person you need to convince, hence the thread.
    Are you in talks with the developer? i mean, is he contactable and does he respond, or is he in hiding somewhere?
    Do you currently live in Dubai? and have you been to see him personally?
    I think you mentioned in another thread, about trying to talk to him, but he just keeps refusing to co-operate at all, and will demand more cash on schedule
    (is that you?)
    I think it's obvious by now that we can't rely on RERA, or anyone else as yet, they are just over-burdened and, from most stories, not overly interested either.

    You need to look through all your past correspondence and see if he's told any outright lies, or false promises, or tried to get you to sign any "false" documents about escrows etc (I was asked to sign a second "reservation form" 6 months after the 1st at a 40% reduced price.
    I refused, saying I would be entering uncharterd waters with that, and i brought up the subject again, with the fact i still had the e-mails, when i was looking for refund.
    Even if you find anything, you then have to hope he considers himself as having some reputation/ respect which he doesn't want to damage.
    He may not care, or just be past that point.
  7. revolutionary

    revolutionary New Member

    I'm interested in what you say as this is the first post that hints at the type of issue where the Dubai courts may have any deterrent effect on Developers.

    If a Developer tells a straightforward lie that can be proved, in order to receive money that isn't owed, would that type of information be a more useful bargaining chip? In those situations do the officers of the developer become criminally liable rather than simply liable to proven civil liabilities.

    My guess is that the developers are playing a numbers game with investors assuming most will do nothing, some may consider taking them to court but then not be able to fund the uncertain use of lawyers for several years, and only very few being successful in court at receiving back what they should have got in the first place. That makes a lot of sense for any Developer not worried about their reputation long term.

    However if there is a risk of criminal liability then the officers of the developer may well seek to avoid that possibility as any one case could land them in jail.

    Thoughts anyone?
  8. PropGuy

    PropGuy New Member

    I spoke to a developer about reducing OP since cost of construction has come down, but they refused. They said it was the market price at that time and they are not liable to reduce prices. One person said if costs would have gone up then purchasers wouldn't turned the other cheek and let them increase the OP.

    Well, they don't have to increase the OP but whichever developer does then it is making more goodwill in the market, but that is long-term marketing. I'll not buy from them again, thats for sure.
  9. memo123

    memo123 Member

    They all charged huge premiums at that time to protect them selfs from surging costs of building material added to that for pure profit purposes and if my developer was to tell me the price has gone up i would say " your huge margin that you took on me for selling me what ever should cover the increment in the cost of building material "
    people are not fools.
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