RERA Dubai – Dubai Property Investor Group Petition – Surprise
Posted by 7starsdubai on 2009/02/22
http://www.thenational.ae/article/20090222/BUSINESS/942576581/1051/rss
DUBAI
The Real Estate Regulatory Authority (RERA) and a group of private property investors will combine to create an investor’s advisory panel that will provide feedback to the Government as it tries to resolve disputes.
Marwan bin Ghalita, the chief executive of RERA, agreed to the plan during a meeting with the Dubai Property Investors Group, a coalition of more than 350 investors that was formed after sales began to slow last year. Group members say they are concerned about the safety of their investments and ability to get their money back if a developer cancels a project or refuses to start construction.
“We want to protect the real estate investors,” Mr Ghalita said. “We are studying project by project… Once we have enough information about a project, we will intervene as a regulator.”
Ludmila Yamalova, a lawyer with MAC Davidson & Associates and a member of the investors group, said she was encouraged by the meeting with Mr Ghalita.
“Until today’s meeting, we felt that the Government was in denial,” she said. “But he was very welcoming to investors. He said we all made mistakes, investors and developers. Now we need to solve the problems and move forward.”
Mr Ghalita emphasised to the group that all investors need to register their transactions with the Land Department, including reservation agreements and booking receipts, to ensure that the Government can help with disputes and investigate developers that are acting incorrectly. He warned that in many cases, the issue between buyers and developers is contractual and will have to be settled in court.
The investors group also discussed the details of a petition they delivered to RERA on Jan 18 that called on the Government to take measures to protect their investments and prevent unscrupulous developers from absconding with funds.
“Any measure short of announcing which developers are bankrupt will continue to let real estate prices free fall,” the petition said, according to Zawya Dow Jones. “We do not want to make any more payments until we have proof that the developers have the financial ability to deliver our units.”
The petition also called on the Government to cancel large developments now in their early phase, including Dubailand and Nakheel’s Waterfront, because they were no longer sustainable in the dampened market.
The Dubai Property Investors Group was set up to “discuss the protection of the rights of investors in the Dubai property market by seeking a dialogue with the developers and the government to find sustainable, working solutions in these demanding times”, according to the group’s website.
bhope@thenational.ae
Lilouti Khan said
Like you all, I too paid all the monies my contract said I am to pay, the unit was never finished December of 07 as stated in contract, so far MINc properties have refused to return my monies… Their only explination is ” because we can” Simon Everest has never returned any mail or messages, ignor, ignore and the problem will go away or at least the money will. I wrote the king and all the kings men ,no response. How long can it be before the world takes notice, do not do business with the ARABS. Minc is at p.O. Box 504919, Dubai, UAE. The Escrow bank National Bank of Dubai refuses to refund also Thanks Dubai. LKhan
Joe said
Mark,
1) They can’t take your off plan unit. They have to do it over Land Department
2) Usually there are first 4 installments connected with time period payment and other that follows are connected to stage of construction. Unfortunately first four are not connected to construction phase and thus you should have to pay it in accordance with agreement BUT
3) If they did not commence work 6 months after pre launching date they violate Law no 8 article 17 and thus can’t terminate your agreement over Land Department
4) You have to check if they registered your project and escrow account with RERA . If they did not than they violate Law No 8 and cannot terminate your agreement
5) Check also if they register with RERA exactly the same company name as it is on your agreement. If it is not they can’t terminate your agreement
6) If they are delaying construction there is no way for now than go to the Dubai property court and open the case. Just registration will cost you AED 31K. Then you will need to pay Lawyers and other ongoing costs. Process can last at least one year.
In general RERA has power and obligation to check any project and cancel it if project is not moving forward or developer is not keeping accepted property Laws. But as we can notice RARA is singing songs that ruler family list daily to them. They do not do their job independently and in accordance with power by Law they have. If they react as job ask from them than we should not have problem and property market will soon stabilize. Bad and fraudulent developers should vanish from Dubai and there will be far more clear situation that it is now. Current situation is devastating for Dubai future. Every more day of delay will mean less investors will stay with Dubai. What alone that any new investor will be very cautious jumping in investment with them.
Let’s hope that rulers will recognize that RERA’s passiveness to protect some individuals inside country means far more short and long term damage than cutting them from the scene.
Mark Stothart said
I purchased two off-plan properties with Chapal in Ajman (Emirates Lake Towers). Construction has stopped and I’m trying to get my money back. They are very uncooperative. I’ve already paid 30% on both properties and they’re saying they’ll keep this if I don’t continue paying. Any advice would be greatly appreciated!
Mark
Rod said
I purchased an apartment in the Sunset Gardens B development, in Jumeiral Village, to be built by Al Zahra Properties. I made this purchase in May/07. I have paid 50% of the monies due and still they have not commenced work.
We cannot contact developer or RERA and I am in Australia, so cannot do anything in person. I have had contact with Islamic Bank, who say at least some of my money is in the escrow account, but unsure if all is there.
Can you please tell me if you know anything about this developer and how I can confirm with RERA that I am registered. Are there any option to get my money back, at this stage?
Sara said
Hello,
I have a similiar case as Dina and Ajmal and would like to know what are my options?
I’ve paid the developer 30% already and only the foundation to the building has been put in place.
Can someone please advise who I can contact to help me with this case?
Many thanks in advance.
dina abara said
I booked a studio in R&R tower in Jumirah village in 2007. They pomised to deliver in 2009. Untill now they did not started. Before the world crises to happen they are late . I paid 30% of the cost.
they made the studio smaller in size unlike what I sighned.
I want my money. they will take 30% of the cost when I asked them that I cannot waite and I need My money!!!
1.The developers did not started the project.They are late.
2. Changed the descriptions without my permision.
3. I paid 30%.
4. I asked for my money. They said if you cancel.we will take 30% of the cost of the studio!!!!!or you waite waite and waite. not fair
Please dvice me what to do it seems I will lose mey money I paid.
Ajmal Bhatty said
Dear National,
I read with interest your news on RERA agreeing to form a group that would address investor concerns regarding problems they face from the falling proprty market in Dubai.
I am one such investor, having put my life savings in Damac’s off-plan project in Jumeirah Village (I have already paid 25% and there are 2 more payments of 10% each over due). They are demanding more payment as per original schedule but the project has not even started and there does not seem to be any possibility of it starting for at least a year. According to them if I don’t pay, I will lose all what I have already paid.
My purpose of writing to you is if you could please let me know how to get in touch with the Focus Group so that I can register my case with them.