Investors of dealyed Dubai Sports City file a petition to the Dubai Land Department

Hundreds of investors in the massive delayed real estate projects at Dubai Sports City (DSC) are to hand in a petition to Dubai Land Department urging authorities to audit the project and investigate delays by third-party residential real estate subcontractors. According to the investors’ petition, they claim “what we have is a half built sports city, with many building plots standing abandoned and investors chasing non-existent developers to try to get their money.”

 

The Petition RERA Dubai Help us :

We are the 2005/07 Investors of Dubai Sports City.

Many of us wanted a holiday home in Dubai for our families and before that we were part of the successful Tourism Industry that frequents Dubai every year. Some of us were planning to make Dubai our new home. We are not gamblers or speculators that invested beyond our means.

Our money was supposed to be protected by the escrow accounts. We were promised stadia and infrastructure. It is now 2012 with no end in sight…

The Developers have defaulted on mass scale since according to our contracts our projects were supposed to be completed between 2008 and 2010. Until today we have not received any request for an extension of our contracts and no explanation about why the projects have been stalled. Many of us were asked for more money and some of us were told that the construction was in progress when it was not. Many projects have stalled for years, but those Developers are still allowed to hold our money until “the market improves”. Despite numerous contacts with RERA our rights have not been upheld. Furthermore RERA is delaying the cancellation of non-vital projects. We feel that this  inaction has an additional negative impact on the Dubai economy and more precisely on its real estate market.

It is our belief that if RERA applied the law equally to Developers and Investors, we would be allowed to choose to receive refund of our money as per our contracts and could then reinvest the money in viable projects. If the Developers have misused the money they should be penalised according to the law.

We, the undersigned hope for the best future of Dubai. As Investors in Dubai we ask:
1. The Government to stop the Developers demands for additional payments beyond those already contracted;
2. To provide every Investor with escrow/trust fund/invested money information in every project in DSC so Investors can make informed decisions,
3. Create new escrow accounts for new payments,
4. Require the Developers to use the money already invested into the projects to complete them;
5.Mediate disputes between investors and Developers and come up with practical solutions -don’t send everybody to courts.

Click here to sign the Petition

Dubai property investors can seek refund and damages from developer

Draft Investor Protection Law released by Dubai Land Department for feedback from public. The intending investor, the draft law proposes, shall be entitled to recover compensation from whoever of the developer, investor or broker shall have caused the loss.
source Emirates 24/7

Developer’s failure to complete or handover a property within a certain timeframe from date specified in the sales contract, deliberate intention of defrauding an investor or altering the specifications of the unit without obtaining requisite permission will soon allow investors to recover all the amount by them, Emirates 24/7 reported.

The draft law regarding the protection of the real estate investor in Dubai was released on Wednesday (June 20) to get feedback, for the first time, from people involved and concerned with real estate investment in the emirate. The department will be receiving feedback until June 29.

However, it is not known when the law will be actually implemented. But in April, Sultan Bin Mejren Director General of Dubai Land Department, said the law was expected to be implemented by end of June.

continue reading original source Emirates 24/7

The Draft of the Law can be read/ download pdf  here dubailand.gov.ae

Click here to give a feedback to the Dubai Land Department

Dubai Developer Nakheel threatens defaulters with arrest

Nakheel denied 1,386 Palm Jumeirah Residents  access to beach clubs

Nakheel on Sunday banned more than 1,300 residents on its flagship Palm Jumeirah project from using the beaches, pools and gyms in the first stage of a controversial plan to charge for the use of facilities.

Owners or tenants living in these properties have now been denied access to any facilities, and were warned they could be arrested if they attempted to enter the pool and gym areas.

source …..continue reading ….Arabian Business and Emirates 247

Dubai canceled 217 Registered Real Estate Projects

217 Real Estate Projects canceled by RERA Dubai

Dubai continues to struggle with its real estate woes, the latest sign that things are not yet quite set to improve comes with the report that Dubai’s real estate watchdog organization has canceled around 217 registered property projects since 2009[. The Dubai Real Estate Regulatory Authority  (RERA), reviewed about 450 projects in the emirate and may have canceled as many as 217, although it admitted that 237 would likely be completed “in due course.”

Last year, the value of property transactions fells to 119.5 billion dirhams ($32.5 billion) from 152.9 billion dirhams in 2009, and residential prices in the region are still falling with declines of 1.2 percent in May.

Home prices are down 64 percent from their mid-2008 peak

Dubai real Estate development cancellation rise to 500 RERA said

source Arabian Business 

The number of real estate developments in Dubai facing cancellation this
year has risen from 300 to 500, the emirate’s property watchdog Rera Dubai said.

Marwan bin Ghalaita from RERA Dubai told Arabian Business:

“We have finished the technical review, site visits have already been
done, so we know what stage the projects are at and the strength of the
contractor. Now we’re waiting for the financial audit to finish and we will release the names [of the cancelled Dubai Property projects] very soon.”
continue reading……

RERA Dubai – 90,000 units face cancellation

Dubai April 7, 2011

In an interview with XPRESS, Marwan Bin Ghalaita, CEO of Dubai’s real estate regulatory agency, confirmed that 257 projects were under review, many of which were yet to even start construction.

He added that when assessing a project’s viability, RERA would be looking particularly at the ability of contractors and developers to deliver the project.

Last year, RERA cancelled 202 projects where little or no construction had taken place or where buildings were located far from the city’s main infrastructure

 

Rera Dubai-Questions-Answers-Confusion-Discussions

Further Stories

Arabian Business EXCLUSIVE: Poor Dubai building quality will damage market – Bin Ghalaita

Arabian Business EXCLUSIVE: Master developers ‘damaging’ Dubai property sector – RERA

Arabian Business EXCLUSIVE: Homeowners’ charges ‘should be reduced’ for poor service – RERA CEO Bin Ghalaita

Arabian Business EXCLUSIVE: Investors should use force majeure to withhold payments – RERA

Arabian Business EXCLUSIVE: RERA yet to prosecute a single developer – CEO bin Ghalaita

Arabian Business EXCLUSIVE: “There is a limit to transparency” – RERA boss Bin Ghalaita

Arabian Business EXCLUSIVE: “You’ll see a lot of cancellations in 2011” – RERA boss Bin Ghalaita

Arabian Business EXCLUSIVE: Two billion dirhams spent from Dubai escrow accounts – RERA boss Bin Ghalaita

source Arabian Business

 

Dubai Rera has only 1.36 Billion left in escrow account

Dubai’s Real Estate Regulatory Agency has only 5 Billion dirhams ($1.36 billion) remaining out of 7 billion dirhams originally deposited in escrow account it manages on behalf of buyers of yet-to-be-built properties, Arabian Business reported, citing Marwan bin Ghalaita, head of the regulatory body

RERA, which oversees the account and disburses money to developers during construction, has barred payments except those directed to contractors to pay for construction, the Dubai-based magazine said, citing RERA chief Marwan Bin Ghalita.

Read also: You will see a lot of cancellations in 2010 – Marwan bin Ghalaita

and      There is a limit to transparency – Marwan bin Ghalaita CEO RERA Dubai

Dubai Property Investors frustrated

source Emirates Business 247
Dubai, 29 July 2010

Investors in the UAE’s real estate are a frustrated lot, but not just because the sector is in the throes of the worst-ever slowdown it has witnessed. That’s a known fact, and most investors have reconciled to it.
However, what is not known and, therefore, much more frustrating, is the status of the projects in which they have invested their hard-fought cash.

Many developers in the country have apparently chosen to not communicate with their clients about when the stalled projects are going to take off and when will they be delivered, if at all.
Property blogs and social media sites are full of frustrated investors venting their ire.
continue reading….

Dubai seize properties from off-plan investors

original published The National – Angela Giuffrida Dubai-  Abu Dhabi 25 April

The Dubai Land Department may begin seizing off-plan properties whose owners are in default.

The authority has started notifying investors who have defaulted that if they fail to make their outstanding payments within two weeks that 40 per cent of any money they have paid so far will be confiscated, and the properties will be sold at auction.

The confiscated money, along with any profits from the auctions, will be handed over to the developers. The rule applies to projects that are 80 per cent or more complete.

The move, according to Mohammed Sultan Thani, the department’s assistant director general, is intended to spur the completion of unfinished projects. “The idea is to see what we can do before the property is cancelled,” he said.

During the property boom, many developers depended on the off-plan model, whereby a property is sold before building work starts to provide finance for construction. Many analysts say the model fuels speculative buying and inflates prices.

A number of developers, including Kuwait’s Al Mazaya Real Estate, which has eight projects in Dubai, have had such cancellation notices issued to investors.

Omar Ramaznouf, a Russian investor who has so far paid Dh10 million (US$2.7m), 60 per cent of the total price, towards 16 office units at Mazaya Business Tower in Jumeirah Lake Towers, recently received one of the Land Department’s notices.

Mr Ramaznouf, who has not made any payments on his development since December 2008, was told in the letter that the developer would be allowed to “sell the related unit[s] by auction in conformity with common regulations, and with the price asked for by the developer in addition to expenses”, unless he paid the next 20 per cent instalment within two weeks.

The final instalment is due when the properties are handed over.

Mr Ramaznouf said he has been unable to pay some instalments because of “cash-flow problems” brought on by the financial crisis. He has been trying to extend his payment plan with Al Mazaya, according to Medhi Guliyev, his business partner.

“But now he’s being told ‘you don’t own this property anymore,’” said Mr Guliyev.

George Ezman, a businessman from the Czech Republic who bought several office units in Jumeirah Business Centre 5, a project by the Dubai developer Al Fajer Properties, has received a similar notice. He has paid 30 per cent of the total cost and is due to pay the remainder on completion.

Mr Ezman complained, however, that the developer breached its agreement by delivering the property more than a year late.

He said that, according to his contract, he had the right to cancel the contract and receive a refund if the property was late.

The building was supposed to be finished in 2008, he said. “I’m not paying any more because the agreement to cancel our contract and get a refund has been ignored. This, along with the fact that they can take our money and keep our property, is insane.”

Spokesmen for Al Mazaya and Al Fajer were unavailable for comment yesterday.

Lawyers working for investors such as Mr Ezman say that while the Land Department can issue cancellation notices, a property agreement can only be officially cancelled by the courts.

Mr Thani said the authority had yet to auction any properties and did not believe there would be many such cases. “Very few people will opt for not completing payments if the building is almost ready.”

Dubai Property Law 13 on the way

source CraneCountry The National
Key changes are detailed after the jump…

From Hadef’s website: http://www.hadefpartners.com/News/pageid/120-137/default.aspx?Mediaid=124

§         The Regulations make it clear that a developer needs to only submit an application to register units under Article (3)(2) of Law 13 within the specified time in order to comply with the registration requirements. Applications made outside this time will still be registered but a fine of AED10,000 will be levied.

§         Developers cannot sell off-plan before taking possession (which includes actual control of the land) and only after obtaining the site location plan along with all necessary approvals from the competent authorities for the project.

§         Parking lots must be registered along with the purchasers’ units.

§         The developer cannot refuse to transfer units if the purchaser has fulfilled his contractual obligations even if the purchaser owes other financial obligations not arising out of the particular sales contract.

§         Developers who wish to sell using real estate brokers must conclude a contract with a registered broker and have that contract registered with the DLD.

§         Sales of units in projects that have not been fully approved by the authorities are void.

§         Where brokers market all or part of the project the broker must place all sums received against the purchase price for the unit in the escrow account and cannot deduct monies for brokerage until after payment into the escrow account. Any contract that allows otherwise shall be void.

§         The DLD has the authority to act as a mediation service for disputes between developers and purchasers.

§         Further clarity is given on the procedures for terminating purchasers. Developers appear to now be able to send their own termination notices (i.e. not through the DLD) provided they copy the notice to the DLD. A developer does not need to sell at public auction if he completes more than 80% of the project and may elect to terminate the contract and retain up to 40% of the purchase price.

§         A developer can only rescind a contract with a purchaser where construction has not started provided the developer proves he has fulfilled all his contractual obligations and proves the project was not initiated due to causes beyond his control and the failure was not due to his negligence.

§         Leveling and infrastructure works are evidence that a developer has started a project.

§         A developer may make use of or let a unit to a third party if the unit is not auctioned subject to the developer repaying any balance sums due to the defaulting purchaser in accordance with the timeframes set out in the Regulations.

§         A purchaser can request the courts to rescind a contract in the following cases:
(i)   if the developer refuses to deliver the contract for the unit without any justifiable reason;
(ii)   if the developer does not bind payments to construction based milestones as approved by the DLD;
(iii)  if the developer significantly changes the specifications agreed in the contract;
(iv)  if the unit is proved to be unusable due to major structural defects;
(v)   in any other cases applicable under general legal rules.

§         For the purposes of the Regulations causes beyond the control of a developer include:
(i)   the plot on which the project is to be built is re-possessed for public interest;
(ii)   if a government authority stops the project for re-planning;
(iii)  if excavations or service networks are found in the project’s location;
(iv)  if the master developer modifies the project’s location in a way that prevents the sub-developer from executing its obligations;
(v)   any other causes as deemed by the DLD.

§         Negligence by a developer includes:
(i)   delay in taking handover of the plot and obtaining necessary approvals from the competent authorities without any reason;
(ii)   sub-developer sells off plan without obtaining permission from the master developer;
(iii)  delays in obtaining written approval for plans and designs;
(iv)  delays in preparation of the project for actual construction works;
(v)   not providing the DLD with necessary information required to approve the project;
(vi)  non registration of project with DLD;
(vii) non disclosure of the project’s financial data to the DLD;
(vii) any other causes as deemed by the DLD.

§         The DLD can cancel a project on the basis of a technical report in the following cases:
(i)   the developer does not initiate construction without justifiable cause after obtaining the required approvals;
(ii)   the developer breaches Dubai Law 8 of 2007 (the Escrow Law);
(iii)  the DLD finds the developer not serious about constructing the project;
(iv)  the land on which the project is to be built is re-possessed due to breach by the sub-developer of its contractual obligations towards the master developer;
(v)   the land on which the project is to be built is affected by planning and re-planning projects by Dubai authorities;
(vi)  the developer fails to commence the project due to gross negligence;
(vii) the developer declares its intention not to commence the project for reasons acceptable by the DLD;
(vii)  the developer declares bankruptcy;
(viii) any other causes as deemed by the DLD.

§         A developer can appeal the DLD’s decision to cancel a project within seven days of being notified by the DLD.

§         If the balance in the trust account is insufficient to satisfy the purchasers’ rights, the developer shall repay the outstanding sums to the purchaser within 60 days of cancellation unless an extension is granted by the DLD.

§         If a developer fails to repay the sums to purchasers in cases of project cancellation, then the DLD has the authority to take necessary steps to protect purchasers’ rights including referring the matter to competent judicial authorities.

Additional notes from Hadef & Partners:

“The Regulations whilst providing some much needed clarity over many issues also throws up some interesting characteristics such as reinforcing the wide degree of power and discretion the DLD holds in respect of projects.

It is also still not clear how the DLD will approach situations where a purported termination of a purchaser is met with resistance and/or whether the DLD will remove an interest in the interim register without a court order where a legitimate dispute has arisen. Further clarity may also be needed where a bankruptcy event occurs as to how exactly the interim registered interests will be treated as far as priority is concerned in the bankruptcy situation.”

Dubai Apartment prices will fall 20 per cent this year

10 February 2010 DUBAI

original source Khaleej Times UAE

Sale prices and rents for villas, apartments and offices in Dubai will continue to decline through the first quarter o
2010 because of supply glut, with apartment prices likely to take the biggest hit and falling as much as 20 per cent in the next 18 months, property consultants Landmark Advisory said on Tuesday.

Landmark said that Abu Dhabi’s residential property prices, in the first quarter of the year, are likel
to remain stable on average, with some upticks in select localities. But rents are likely to maintain a downtrend.

High-end units in Abu Dhabi saw their rents fall up to 15 per cent, but it was low-end units that fared the worst, Landmark said in its Q1
Real Estate Report.

The report said that after increasing in the third quarter last year, villa prices in Dubai stagnated with a marginal increase of 0.2 per cent in the fourth quarter. A price bifurcation is emerging with coastal villa communities (along Sheikh Zayed Road) stabilising, while inland villa communities experience further declines, it said.

continue reading…

Technorati-Tags: Dubai Apartment Prices 2010, Dubai Real Estate Crisis

Dubai-More than fith of construction projects have been put on hold or canceled

original source The National

DUBAI // As an amateur photographer and property investor, Imre Solt found himself visiting construction sites throughout Dubai to document the progress of the rising skyline of Dubai on a daily basis. Now he is lucky to find a significant change at a project once a month.

“Sometimes I don’t take any photos at all because there is no progress,” says the Hungarian-born Mr Solt, who has captured the city’s growth in what he estimates are 100,000 pictures taken from the tops of tall buildings, helicopters and even a biplane. “There are a few buildings that have made very good progress, but I think more projects are on hold than before. Sometimes, there are just a few workers there.”

The numbers bear him out. More than a fifth of construction projects in Dubai have been put on hold or cancelled in the past year, with the remainder severely delayed, said Proleads, a construction information provider. Proleads also estimates that the number of construction workers in Dubai has declined 45 per cent from the peak of the property boom in 2008 to last month, a further sign of the city’s post-boom state.The problems are not isolated to Dubai, with projects in Abu Dhabi, Ras al Khaimah and Ajman similarly stalled.

“You have this stalemate,” says Andrew Charlesworth, the head of capital markets at the property consultancy Jones Lang LaSalle. “We are not seeing any distressed sales come through. Banks are reluctant to foreclose. Buyers can’t make payments and developers can’t build.”

continue reading…..

The official Dubai Real Estate Community – RERA Dubai

To get in Contact directly to the OFFICIAL DUBAI REAL ESTATE COMMUNITY RERA DUBAI please click here:

http://rpdubai.ae/English/about_us/about_ld.aspx

Protection Law planned for property buyer in Dubai

original published TheNational.ae
http://www.thenational.ae/article/20080619/BUSINESS/979078495/1041/ART
Angela Giuffrida
Last Updated: June 19. 2008 9:13PM UAE / June 19. 2008 5:13PM GMT

The proposed property law would also give home buyers the right to seek compensation against developers who make changes to a project’s design halfway through construction. Ryan Carter / The National

People who buy property off developers’ plans will be better protected from misleading marketing by developers if a new consumer protection law is passed by the Dubai Land Department (DLD).The proposed property law would also give home buyers the right to seek compensation against developers who make changes to a project’s design halfway through construction.Under the regulation, developers would have to give buyers a “disclosure statement” before signing a contract.

The statement must include full disclosure about a development, such as how many buildings it will include, the facilities it will provide and where it will be located. It would also include the estimated service and maintenance charges for the development and a date of completion.The regulation is also expected to contain a “statutory warranty” from the developer, meaning that home buyers will be entitled to seek compensation if changes are made to a development or the final product differs from its description in the disclosure document.

The aim of the regulation is to crack down on developers who sell properties off-plan and then fail to deliver on their promises.”This is going to be huge if they bring it in,” said Stephen Kelly, an associate with Clyde & Company legal consultants.”It will mean developers warranting that the information in their disclosure is correct and not incomplete. If a developer makes changes to the development later, for example they ­decide the development is only going to have five gyms as ­opposed to the original 20, then a buyer can seek compensation if they suffer loss from the changes.”

The National recently highlighted complaints raised by residents at Jumeirah Beach Residence after the developer, Dubai Properties, decided to cancel five of the gyms originally planned for the project and build a 500-vehicle car park where a beach park had been planned.In 2005, Emaar Properties came under similar pressure from residents at its gated community projects, the Meadows and the Springs. Owners complained that the developer had failed to deliver some of the facilities it had promised, and was also charging for amenities initially sold to them as free of charge.

“These changes, if introduced, will impact how developers market their projects and will hopefully assist in preventing some of the problems that have occurred recently, with developers not completing their developments as they have been represented to purchasers,” said Mr Kelly.

The Real Estate Regulatory Authority (RERA) was set up by the Dubai Government last year to regulate the emirate’s property market and stamp out malpractice among developers.

All developers now have to register with the RERA, and any money made from off-plan sales has to be placed in a specially managed account, known as an escrow.The escrow account must be opened with an approved bank, but before this can happen, developers must provide all details about a project to the DLD, such as the title deed of the plot, the designs and layout. Money made from off-plan sales is then placed in the account and used only to fund the construction of the project.

The system is also expected to ensure that construction firms are paid on time.

“You’re no longer going to see property developers collecting money at the launch and then just using it to buy another plot,” said Alexis Waller, a partner at Clyde & Company.”

The developer now has to work with the approved bank, RERA and the DLD to develop a cash flow system, so it’s clear how the development is running and what the money is being spent on. The bank will also have to approve the money being paid to contractors, and when.

It’s really about cracking down on those developers who take the money but then don’t do the work.”

Strata law – legal principles that lay out rules in freehold condominium and apartment developments – took effect in April in Dubai. However, the law is currently under revision and changes may be made.
The law also places the management of a development’s common areas – such as lifts, pools, gyms and parks – in the hands of the home owners, who will be entitled to set up a home owners association.

A spokesman for the RERA, who wished not to be named, said the authority was close to finalising the revisions of the law.
Walid Abdel Latif, the director of sales and marketing at Define Properties, which recently launched in Dubai with a planned portfolio of properties worth Dh8 billion (US$2.1bn), said the fresh regulations would weed out the poor quality developers in the market. “It’s a very healthy move,” he said.

“Through this, we will be able to provide the right services to buyers, will know how much those services will be and how good the actual quality of the building will be. Although we’re a new company, it’s good for us to start from scratch – so we’re building the right way from the start.”

agiuffrida@thenational.ae

RERA :1560 Dubai Projects – only 476 of them have a Escrow account

Dubai Developers deposit Dh4b in escrow accounts
DUBAI — A total of Dh4 billion has been deposited by developers in escrow accounts with 33 banks approved by the Dubai Real Estate Regulatory Agency (RERA), said Marwan bin Ghulaita, the agency’s CEO.

Speaking at the regular monthly meeting of the Dubai Property Group (DPG), Bin Ghulaita announced that the number of projects registered with RERA amounted to 1,560 projects, 476 of them have a so called Escrow  account.

He noted that by the end of April, RERA had registered 710 developers, 1,487 brokers’ offices and 2,909 agents.

RERA and Dubai Land Department representatives presented the latest procedures and regulations for registering and transferring freehold properties in Dubai to over 300 DPG members. In addition to Bin Ghulaita, Mohammed Sultan Al Thani, Assistant Director General of the Dubai Land Department and Khalifa Al Suwaidi, IT Director at the Dubai Land Department were present.

Al Thani announced that electronic forms for real estate agents are ready and can be easily accessed through the Department’s Web site, noting that by November 1, the Land Department will not clear any property transactions without these new official forms which are only accessible to RERA accredited real estate agents.

He added that the Land Department will be introducing two registration systems: one for completed property (the register) and the other for ‘off plan’ sales (the pre-register) in the coming two weeks.

RERA – Official Dubai Real Estate Community