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    • Criminal Complaint filed against Al Fajer Properties Sheikh Maktoum
      Criminal Complaint filed in Germany against Sheikh Maktoum Hasher Maktoum Juma Al Maktoum CEO of Dubai Developer Al Fajer Properties The Dubai Sheikh who mislead and extort a German Couple  Germany – Dubai 2011 A German elderly couple , today 80 + 50 years old who have been Dubai Tourists since a decade, bought in 2005 an apartment at Nakheel´s Dubai Residen […]
    • UAE: Human Rights Blogger, Sorbonne Lecturer Charged With ‘Humiliating' Officials
      source Human Rights Watch www.hrw.org (Beirut) - The United Arab Emirates attorney general should immediately drop all charges against five pro-democracy activists to halt their trial, Human Rights Watch said today. The charges of "humiliating" top officials relate solely to the defendants' peaceful use of speech to criticize the UAE governmen […]
    • Nakheel Dubai Sunland Case
      June 5, 2011After 21 hearings, Chris O'Donnell, the Australian chief executive of Dubai's major developer, Nakheel, came to the defence of his former colleagues Matthew Joyce and Marcus Lee. Mr Joyce and Mr Lee are accused of profiting from the sale of land that had been earmarked for a colossal high-rise development, which was to include the futur […]
    • Dubai Nakheel CEO decided to leave the company
      Dubai June 7, 2011 Nakheel said on Wednesday that its CEO Chris O'Donnell had left the company "after completing his contract terms". O'Donnell, an Australian who joined the developer in 2006, said he had decided to leave Nakheel following five years spent with the company, the statement added. O'Donnell has overseen a traumatic time […]
    • Owner of Dubai Developer Damac Hussain Sajwani files case against Egypt corruption ruling
      Dubai property developer Damac said on Tuesday it had filed an international arbitration case against Egypt over a land dispute and the conviction of its chairman and owner, Hussain Sajwani.A Cairo court last week sentenced Sajwani in his absence to jail and ordered him to pay a $40.5 million fine in connection with his 2006 purchase of land at Egypt's […]
    • Dubai Palm Jumeriah - Investors plan to take legal action
      Investors in Dubai Palm Jumeirah’s Golden Mile complex will this week serve the developer behind the project with a legal ultimatum to hand over their units or issue them with a refund.Up to ten investors in the luxury complex plan to issue Souq Residences with legal notice in a bid to force a resolution to a dispute that has been ongoing for more than a yea […]
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Posts Tagged ‘Dubai developer’

Dubai Real Estate Cases before Court rose – no end in sight

Posted by 7starsdubai on December 4, 2012


real estate cases 2012 dubaiThe number cases with judicial claims of over Dh100,000 in the Dubai Real Estate Court rose 22 per cent from 1,063 in 2010 to 1,294 in the following year.

The real estate court considered 2,643 cases in the year 2011, including 1,394 brought forward from the previous year.

The court gave its verdict in 1,021 cases, or in 39 per cent of the new cases.

1,580 cases, or 60 per cent of the total, were taken forward to the year 2012.

continue reading original source Emirates 24/7

Posted in Dubai Developer | Tagged: , , , | Comments Off on Dubai Real Estate Cases before Court rose – no end in sight

Nakheel and Dubai´s Reputation – Interview with Khalaf Al Habtoor

Posted by 7starsdubai on February 26, 2012


 The headline for this article in Arabian Business was: Nakheel damaging Dubai´s Reputation “two million times for a few dirhams” – Al Habtoor

In an interview with Arabian Business on Sunday Mr. Khalaf Al Habtoor said :Nakheel’s decision to charge for beach access on its flagship Palm Jumeirah project is “dangerous” and “unacceptable” . He strongly hit out at Nakheel, claiming the decision would never have been approved by the Dubai government.

“It was 100 percent [damaging] and unacceptable. If I am buying a house and using the beach and later told I have to pay for the beach, this is abnormal. This is damaging the reputation of my country,” he said.

continue reading original source Arabian Business

Posted in Developer Dubai, Dispute, Dubai Real Estate, Nakheel, Palm Jumeirah Dubai | Tagged: , , , , | Comments Off on Nakheel and Dubai´s Reputation – Interview with Khalaf Al Habtoor

Dubai Marina Homeowners are planning legal action against developer

Posted by 7starsdubai on February 23, 2012


Dubai Homeowners of an upscale 45-storey residential tower in Dubai Marina are planning legal action against the developer, alleging a series of violations, including unfulfilled promises, mis-sale, misappropriation of funds and non-payment of bills to multiple service providers,.

Claire Grainger, Senior Partner from Prestige Advocates & Legal Consultants, who is representing the interim homeowners’ association of the building, said, “We intend to demonstrate in arbitration and court proceedings that either the developer never actually intended to deliver some of the promised facilities or cancelled some of them part way through the construction as published in their marketing material which was used to talk people into buying apartments”,  Gulf News Dubai reported.

continue reading original source Gulf News

Posted in Dubai Legal - Real Estate Lawsuits, Dubai Marina, Dubai Property Investors, Dubai Property legal, Sales Purchase agreement | Tagged: , , , , | Comments Off on Dubai Marina Homeowners are planning legal action against developer

Compensation for Breach of Contract Dubai – Damages under UAE Law

Posted by 7starsdubai on February 22, 2012


Consideration should be given to whether contracts yet to be entered into should specifically address these issues.

But what if the decision is taken not to do so or an existing contract does not address damages?

The Civil Code provides an entitlement to compensation for breach of contract even where the contract itself does not provide for such compensation.

Damages under UAE Law 

The purpose of damages is to compensate a party for any loss suffered as a result of default by counterparty to a contract. 

If damages for a breach of contract are not fixed under a provision of the law or in the contract itself, the Civil Code gives the court discretion to assess compensation “in an amount equivalent to the damage in fact suffered at the time of the occurrence”. The focus here is on the actual loss suffered by a party and gives the court a broad discretion to determine an appropriate award of damages on the basis of the facts and evidence before it. However, how is the ultimate determination made and what limits are imposed on the amount of compensation that may be awarded?

Other provisions of the Civil Code that do not specifically relate to contractual damages may give some guidance as to how compensation may be assessed by a court: “In all cases the compensation shall be assessed on the basis of the amount of harm suffered by the victim, together with loss of profit, provided that it is the natural result of the harmful act”.

The key element of this provision is that a party suffering loss will be compensated for that loss, including any loss of profit, which flows naturally from the default. The explanatory memorandum to the Civil Code says damages are payable in respect of the actual loss suffered as well as loss of expectation (that is loss of an opportunity to obtain a benefit under a contract or to avoid a loss).

Each type of damages claimed will need to be substantiated and shown to result from the breach. Consequential (or indirect) losses will generally only be recoverable where it can be shown that the party causing the loss did so with a malicious intent. While it is important to keep in mind the award of damages is always at the court’s discretion, a specific damages regime in a contract can have the benefit of providing greater certainty as to a party’s right to contractual damages and can assist parties negotiate ways of avoiding recourse to court in this challenging environment.

Read also Contract Law in UAE

source
UAE contract law – 5 legal points to remember

Recent legal developments
UAE contract law – 5 legal points to remember

When overseas investors in the UAE negotiate their contracts, the choice of governing law for their contract can be a point of contention. Often, foreign parties want to choose a neutral and well-established law, such as English law or New York law.
However, the respective bargaining powers of the parties may result in the foreign investor agreeing to UAE law. In other scenarios, the UAE law itself may dictate that it should be used to govern the contract, such as is required for Dubai government contracts under a Decree from 1988. Certain other types of contracts are also required to be governed by UAE law in practice, including UAE employment contracts and memoranda of association to establish a UAE company.
This article focuses on a few key legal points to note under UAE contract law as set out in the UAE Civil Code, particularly where they are different to English or other common law jurisdictions.
1.
Beware of agreements to agree – the courts may enforce the missing details
Article 141 of the UAE Civil Code provides that the parties to a contract must agree on the essential elements of the obligation, but that they can leave matters of detail to be determined at a later date. In this circumstance, if a dispute arises, the judge will make a ruling on the missing terms in accordance with the other provisions of the contract and the law. However, it is clear from the Ministry of Justice official commentary that, for a UAE court to do so, it must be clear that the parties intended to reach an agreement even if they fail themselves to finalise all of the details of the contract.
This departs from the usual position under English law, for example, under which agreements to agree in the future are generally not capable of being enforced. Contracting parties may often tactically choose to phrase a point of detail as an agreement to agree in the full knowledge that if they do not agree in the future, it will not become a term of the contract.
It is also worth noting in this context that the implied obligation of performance in good faith may mean that the courts will find bad faith (and therefore a breach of contract) if the parties fail to agree in certain circumstances, such as one party failing to take reasonable efforts to reach an agreement, or entering into parallel negotiations with a third party.
Therefore, under UAE contract law, parties may be well advised to expressly state that there is no intention that the parties will be bound by Article 141, unless and until an agreement is entered into in writing between the parties.
2.
Only fraudulent behaviour constitutes misrepresentation
Common law lawyers are used to the legal concept of misrepresentation forming an alternative cause of action to breach of contract for parties who have been induced to enter into a contract by statements made by one party which have subsequently be proven to be untrue (and which may also be incorporated in the contract in the form of warranties, for example). Misrepresentation is effective because its scope is wide and includes innocent and negligent statements. It may also be fraudulent or reckless. It has a different basis for the calculation of compensation to a claim for breach of contract and also allows rescission of the contract.

continue reading… original source

Posted in Dubai law, Dubai Legal - Real Estate Lawsuits, Sales Purchase agreement Dubai | Tagged: , , , | Comments Off on Compensation for Breach of Contract Dubai – Damages under UAE Law

Damac Palm Springs Dispute solved – Investors recieved full refund

Posted by 7starsdubai on January 30, 2012


Dubai Property buyers on the Palm Jebel Ali Damac Palm Springs  project, who have waited eight years for construction to begin, were previously offered a 70 percent refund of their deposits, or 25 percent immediately followed by a further 25 percent annually for the next three years.

Now the Investors in Dubai’s stalled Palm Springs project have reached a deal with Dubai developer Damac for a full, upfront refund on payments made for their uncompleted properties.

Of the 48 investors involved, 21 have received payment, and a further 27 are expected to receive their cheques in the next two weeks, Arabian Business reported.

source Arabian Business

Posted in Damac, Damac Palm Springs Jebel Ali Palm, Dubai Property Investors, Dubai Real Estate Scandal | Tagged: , , , | Comments Off on Damac Palm Springs Dispute solved – Investors recieved full refund

Dubai Contractual Law – Legal Opinions

Posted by 7starsdubai on April 20, 2011


Having a Problem with your Contractual Partner (Developer in Dubai) ?

Here is an Extract of the  UAE Dubai Contractual Law

Article 243 in particular:

(1) The contract shall apply to the subject matter of the contract and the consideration…shall not de is pend upon receipt or any other unless the law provides otherwise.

(2) With regards to the rights (obligations) arising out of the contract, each of the contracting parties must perform that which he is obligided to do under the contract.

The developer is not entiteled to make the providion of the subject – matter, i.e. the delivery of the Unit dependent upon the receipt of the plot from the master developer and therefore, cannot indedinitely bind the Client to wait for the Developer to receive the plot.
Furthermore, No agreement can run indefinitely and has to be discharged at one time.

Article 244 of the Civil Code in particular……

A Developer is also in Clear breach of Article 244 of the Civil Code in the case of commutative contracts ( One in which each of the contracting parties give and receives an equivalent). If the contract of sale is of this kind, the seller gives the thing sold, and receives the price, which is the equivalent) for specific property, provided the conditions for the validity thereof are satisfied, each of the contracting parties must have an established right to dispose of the property and each shall have an obligation to deliver the subject matter of the contract to , the Developer is nethe other.

Article 246 of the Civil Code in particular…..

(1) The contract must be performed in accordance with its contents, and in a manner consstent whith the requirements of good faith.

(2) the contract shall not be restricted to an obligation upon the contracting party to do that which is ( expressly) contained in it, but shall also embrace that which is appartenant to it by vitue of the law, custom, and the nature of transaction.

Therefore, the Developer not only had the obligation to construct or deliver the Prooperty but als had an implied contractual obligation to do that is necessary to be done in order to complete the performance of the express obligation.
It is the Developer`s implied obligation to ensure that the pre-conditions neceddary for the commencement of construction are met and therefore it is the Developer who is liable if such does not occur.
Even thought the causes are outside the control of the Developer nevertheless legally accountable to the Investor fir such failures.

TERMINATION of Agreements under Law

Article 267 of the Civil Code provides, ” if the contract is valid and binding, it shall not be permissible for either contracting parties to resile from it, nor vary or recind it, save by mutual consent or an order of the court, or under a provision of the law.

Termination of a sale and purchase agreement under the law depends upon several factors and circumstances and may only granted in extreme cases where the breach cannot be remedied.
The court when considering the question of wether to grant termination or to order compensation along with specific performance considers
a) the magnitude of the breach
b) possibility if the agreement can still be performed

Article 727 of the Civil Code states:

(1) In contracts binding on both parties, if one of the parties does not do what he is obliged to do under the contract, the other party may, after giving notice to obligor, require that the contract may be performed or cancelled.

(2) The judge may order the obligor to perform the contract forthwith or may defer ( performance) to a specific time, and he may also order that the contract be cancelled and compensation paid in any case if apprpriate.

As per Article 273 of the Civil Code

(1) In contracts binding on both parties, if force majeure supervenes whih makes the performance of the contract impossible, the corresponding obligation shall cease, and the contract shall be automaticly cancelled.

(2) In the case of partial impossibility, that part of the contract which is impossible shall be extinguished, and the same shall apply to temporary impossiblity in continuing contracts, and in those two cases it shall be permissible for the obligor to cancel the contract provided that the obligee is so aware.

Article 274 goes on state:

” If the contract is cancelled automaticly or by the act of the parties, the two contracting parties shall be restored to the posotion they were in before the contract was made, and if that is not possible, compensation shall be ordered.”

When performance of an obligation under a binding Agreement becomes impossible, the contract will be terminated thereby extinguishing the corresponding obligation and returning the parties to their pre-contractual positions, which each party being required to return that which he had received und the Agreement.

Upon termination the Client is also entitel to receive twelve percent annual interest pursuant to Article 78 of Federal Law No. 8 of 1993 ( the Commercial Transaction Law)
on all payments made towards the Purchase Price of the Unit.

 

Posted in Contractual Law Dubai, Dubai Property Court, Dubai Property dispute, Dubai Property Investors, Lawsuit Dubai | Tagged: , , | Comments Off on Dubai Contractual Law – Legal Opinions

Dubai Rera has only 1.36 Billion left in escrow account

Posted by 7starsdubai on December 8, 2010


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

Posted in Marwan bin Ghalaita, Real Estate Scandal Dubai, Rera Dubai | Tagged: , , , | Comments Off on Dubai Rera has only 1.36 Billion left in escrow account

Dubai developer Georg Recker wanted over alleged Hotel fraud

Posted by 7starsdubai on April 1, 2010


source TheNational

Authorities in Germany are seeking the arrest of a German national on
suspicion of a multimillion-euro fraud in connection with a Dubai hotel
project that was never built.

A court in Dortmund issued an
arrest warrant in November for the developer Georg Recker, who is in
Dubai and has denied any wrongdoing.

Investors are said to have
provided about €25 million (Dh123.7m) for Mr Recker’s Dubai 1000 Hotel
Fonds towards building a 1,050-room, four-star hotel in Dubailand.
continue reading…
and
from the archive…… 7starsdubai

Spiegel online Auf fen Spuren eines 107 Millionen Euro Phantoms
or
Manager Magazin part I
part II , part III

Posted in Dubai Legal - Real Estate Lawsuits, Dubai Property legal, Georg Recker, Real Estate Scandal Dubai | Tagged: , , | Comments Off on Dubai developer Georg Recker wanted over alleged Hotel fraud

DUBAI – Delays hit building projects

Posted by 7starsdubai on May 26, 2008


original published The National

Last Updated: May 24. 2008 10:51PM UAE / May 24. 2008 6:51PM GMT

DUBAI // Only one in five construction projects is likely to finish on time, as shortages of materials and skilled workers – and an overabundance of red tape – take their toll.

Industry experts said few of the 4,000 or so projects currently under way would be handed over to clients on the scheduled date. The emirate is currently undergoing a construction frenzy and as the pace of building quickens, so do the risks of delays.

Residential and commercial developments along with road, bridge and utilities projects are all competing for the same resources, compounding the problem.

The same issues could crop up in Abu Dhabi and the northern emirates of Ras al Khaimah and Ajman, as they launch their own large-scale development plans.

The problem is also beginning to manifest in other Gulf states.Qatar, for example, has had to introduce price escalation clauses into contracts to stem the impact of higher building materials prices.

As a result of the delays, the relationship between builders and clients is starting to sour.

In Dubai, only a handful of projects are being completed to the satisfaction of all parties involved, said Kez Taylor, the managing director of Alec, a local building firm.“Only one in five are being completed on time,” said Mr Taylor. We should be hitting the success factor at a much greater rate than we currently are.”

He said the tensions which this led to had threatened to ripple into delays on other projects.
Successful projects … are not the norm in this part of the world.

From this, a blame culture develops, relationships break down, people become despondent and don’t want to do repeat business.”

A major factor in delays and its impact on the relationship between builders and developers was the reluctance of clients to make difficult decisions quickly, Mr Taylor said.
Because of bureaucracy, nobody wants to stick their head out and make a decision, he said.

But it is vital that the client takes the lead – it’s their project.

Emil Rademeyer of Proleads, a research firm, said more than 90 per cent of projects in Dubai were on average two months late.

I don’t think I’ve ever heard of a project being handed over early – that’s probably the question … and I’m pretty certain the response would be very few.

Mr Rademeyer said that late changes in design were a common problem among projects in the region, which led to a complete project overhaul in some cases. The situation was also compounded by a severe shortage in good quality contractors, which impacted on the standard of construction.

While there are the challenges of materials and resources shortages, much of the problem lies with changes to design – I’ve heard of cases when a project has almost been completed but then the owner decides they don’t like it and so they start over,” he said.

And because of the shortage of materials and contractors, clients are sometimes just taking what’s available, which might not be the best quality and is a big threat to the final product.”Developments in Dubai also face severe delays in connecting power, water supplies and telecommunications, with many forced to rely on temporary backups.“

There are internal risks when dealing with partners, but there are also external risks that affect a project,” said Ali Hamdan, the corporate finance manager at Sama Dubai, the developer behind The Lagoons project.

“When it comes to a large-scale project such as The Lagoons, success is dependent on dealing with organisations like the RTA (Roads and Transport Authority), Dewa (Dubai Electricity and Water Authority) and Etisalat – if you don’t connect with the infrastructure on time, you get delayed.

Jubeir Shamte, the executive director of the commercial and contracts department at Dubai Properties, which is developing Business Bay, said that clashes in culture and business practices between foreign and local firms also caused problems.

A lot of foreign companies do not understand the culture here, and when you try and bring in culture from other places such as the UK or America, a lot of problems come with it,” he said.“

For example, the concept of partnering is being treated as a new phenomenon, when it is something that we’ve been doing here for many years.”

agiuffrida@thenational.ae

Posted in Dubai, Vereinigte Arabische Emirate | Tagged: , | Comments Off on DUBAI – Delays hit building projects

RERA Dubai – Four Dubai Developer under investigation

Posted by 7starsdubai on May 5, 2008


Four Dubai development companies are being subjected to an “internal audit of transactions”, Marwan bin Ghalita, the CEO of Real Estate Regulatory Agency (Rera) told a Dubai Property Group meeting on Sunday.

“We cannot let people promise and not deliver in Dubai,” he said.
“We want a transparent relationship between parties and have rules and regulations that will be strictly implemented.”
He declined to name the four Dubai developers under investigation.
Last month Damac Properties was involved in a controversy over an attempt to cancel its project Palm Springs on The Palm, Jebel Ali, which has since been reinstated.
Rera has a tough job regulating Dubai realty since its creation last July. Now 2,909 real estate agencies are registered and an estimated 4,000 more illegals in the marketplace have until the end of July to register or face fines.
“From November 1 only licenced agents can advertise property by law,” said Bin Ghalita. “We will not tolerate freelance agents.”
Rera has also licensed 710 development companies, 1,560 projects and 1,487 brokers since its formation, and opened 476 trust accounts worth more than $1.2 billion (Dh4.4bn) with 33 registered banks. “We also want to correct some misleading claims made by developers,” said Bin Ghalita.
“If developers say they sold out in half an hour, how is that possible? If this is advertised they must show data, and not keep us waiting for a month for it.”
In addition, Bin Ghalita said there must be no payment of percentage transfer fees to developers, who are only entitled to claim administration fees for handling such transactions. “Why should developers benefit like this?
It is not their business, we do the transfers.
“He said buyers and sellers should “refuse to pay extra transfer fees”. Bin Ghalita said the proper registration fee is a total of two per cent: one per cent for the buyer and one per cent for the seller.
“Nobody has the right to charge anything else, and please tell me if they do,” he added.

Posted in Dubai Property dispute, Dubai Property Investors, Vereinigte Arabische Emirate | Tagged: , | Comments Off on RERA Dubai – Four Dubai Developer under investigation

Wall Street Journal – Scandals in Dubai Cast a Cloud

Posted by 7starsdubai on May 1, 2008


original published Wall Street Journal http://online.wsj.com/article/SB120941603017750659.html
and
http://www.zawya.com/story.cfm/sidDN20080428017680/lok233629080428?weeklynewsletter&zawyaemailmarketing

Some Problem Deals In Real Estate May Dent Trust
By MARGARET COKERApril 29, 2008; Page C2

DUBAI, United Arab Emirates — This city-state’s real-estate market is booming. Massive building projects scrape the sky. Sales and rental prices appear buoyant as investments flow in from other oil-rich Persian Gulf states, the former Soviet Union, India and Iran.

But a series of legal tussles and property-related scandals could dent foreign-investor confidence and tarnish the business-friendly reputation the government has tried so hard to burnish.
Earlier this month, the chief executive of one of Dubai’s largest publicly traded developers was jailed. And two disputes involving European and U.S. investors have raised concerns about Dubai’s regulatory and legal safeguards.
Foreigner-Friendly

The U.A.E., a collection of seven, semiautonomous emirates, was the first of the Arab Gulf states to allow foreign-property ownership. The country, a major oil producer, remains at the center of the Gulf region’s construction surge. More than a third of the estimated $1.2 trillion in projects under way in the region are in the oil-rich U.A.E., according to a report by the London-based Middle East Economic Digest, which tracks building projects.

While Dubai lacks the big oil reserves of its neighbor Abu Dhabi, it has diversified away from petroleum, building a reputation as a hub for tourism, business and transportation. Crucial to that strategy are its development projects.
Dubai has regaled tourists and investors alike with megaprojects such as the construction of Burj Dubai, the world’s tallest building, and the planned Palm developments, three separate man-made island clusters in the shape of palm trees.

“The perception of Dubai is based on the Burj, the Palm trilogy and sunshine 365 days a year. So far, you could call it a successful marketing campaign,” said Martin Kohlhase, a senior analyst in Dubai for Moody’s Investors Service, the credit-rating company. “There is so much at stake.”
Marwan bin Ghalita, chief executive of Dubai’s Real Estate Regulatory Agency, said he has worked hard over the past few months to improve rule making and enforcement among Dubai’s 742 licensed developers. “We are doing a very good job, but there are still lots of things to do to achieve awareness about the rules and procedures here,” said Mr. bin Ghalita.

Deyaar Development PJSC said earlier this month that its former chief executive, Zack Shahin, had left the company and was being held by Dubai police. The company, listed on the local stock exchange, disclosed the moves after the Zawya Dow Jones wire service reported the arrest.
Mr. Shahin, a U.S. citizen, is being held as part of an investigation into alleged financial wrongdoing at the company. In a jail-house interview, he told the wire service he was innocent.

Mystery has shrouded the case, raising concerns about the extent of its repercussions on the company, one of Dubai’s biggest developers. A Deyaar spokeswoman declined to comment.
Another project — on the Palm Jebel Ali archipelago, one of the three clusters — also recently became a battleground between a Dubai developer and disgruntled investors.
In 2003, Damac Properties, one of Dubai’s largest private developers, sold apartments in a 25-story building, known as Palm Springs. The company targeted British investors, eager to snap up retirement or rental properties.

Last month, Damac sent letters to those investors, saying the project had been canceled, giving few details. When investors pressed, they were told Palm Jebel Ali’s government-controlled master developer, Nakheel PJSC, hadn’t given Damac suitable land on which to build.
‘Out of the Blue’

Damac promised to return investors’ money, plus 6% interest, or give discounts on another Damac property. The Palm Springs apartments were sold for about $220 a square foot, according to investors. Current market prices in the same area are as much as $890 a square foot.
“It came out of the blue,” said Colin Murray, who lives southwest of London and bought two Palm Springs apartments.

Mr. Murray helped band together 80 investors in the United Kingdom. They filed a formal complaint with Dubai’s Real Estate Regulatory Agency. Nakheel denied it had caused the project cancellation, and regulatory officials launched talks between Nakheel and Damac. Damac then told investors that the project was back on.

The agency’s Mr. bin Ghalita said Dubai law gives Damac six months to start construction. He said he “would be keeping my eye” on the situation.

The controversy over Palm Springs was just the most prominent in a series of property-investor complaints. The local English-language press has reported stories of middle-class families being bilked by unlicensed brokers or unscrupulous developers who have taken large deposits and failed to deliver. And then there are delays in finishing construction. Damac has completed only 18% of its $30 billion real-estate portfolio.
Financiers in Tussle

It isn’t only small investors getting ensnared. U.S. private-equity firm Capital Partners, a real-estate-development arm of McKinley Reserve, of Wisconsin, is in a $1 billion legal dispute with Tecom Investments, a subsidiary of Dubai Holding, which is owned by Dubai’s ruler, Sheik Mohammed bin Rashid Al Maktoum.

In 2005, Capital Partners and Tecom signed a contract allowing the Americans to develop a 15-hectare site called Riverwalk. Months later, however, the deal had turned sour. Capital Partners accused Tecom of selling it land that it didn’t own, specifically, almost a hectare that was a designated archaeological site.

With $10 million already sunk into the project, Capital Partners refused to make a scheduled second payment to Tecom until the ownership issues had been worked out. Tecom said that missed payment was grounds to terminate the contract. The case is before the Dubai International Arbitration Center, an independent tribunal.

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Mehr als riskant – Immobilienerwerb in Dubai

Posted by 7starsdubai on February 13, 2008


Wer in Dubai seinen Platz an der Sonne sucht, liegt klimatisch richtig.

Weniger sonnig sind die Vertragsbedingungen in Dubai, die der Immobilienkäufer unterzeichnen muss. Meist weht ihm ein arktischer Orkan ins Gesicht, der schon manchen an den Rand des Ruins getrieben hat. In der Presse und im TV stellen sich die grossen wie Nakheel und Co. mit farbenfrohen Luxusbildern gern als die zuverlässigen Macher dar, doch der Schein trügt. Das die Käufer dieser angeblichen Luxusobjekte reihenweise vorgeführt werden wird in den Medien natürlich nicht gezeigt.

Oft geht der Albtraum schon nach der sogenannten Reservierung für das Traumferienhaus oder das Apartment los. Inzwischen liebgewonnene Praxis auch sogenannter renomierter Bauträger in Dubai ist eine kurios anmutende Hinhaltetaktik. Nachdem ein Käufer seine Anzahlung Kraft des unterzeichneten Reservierungsvertrages geleistet hat wartet er oft vergeblich auf den zugesagten Vertrag. Die in dem Reservierungsvetrag ausgemachten weiteren Raten möchte man dann aber schon fristgemäß haben. Nakheel, so haben wir erfahren spielt dieses Spiel gern.

Briefe werden nicht beantwortet, die vereinbarten Ratenzahlungen jedoch verlangt. Die angegebenen Fertigstellungsangaben sind oft reine Fantasie.  Sobald sich ein Käufer erlaubt einen Anwalt zu nehmen , in der Hoffnung auf rechtlichem Weg zu einer Antwort auf seine Frage zu kommen, wird auch dieser Versuch oftmals scheitern. Dieses Hinhaltetaktik Spiel wird genüsslich von so vielen – auch den sogenannten renomierten – Developern betrieben.

Zu guter letzt bringt man es in Dubai sogar fertig dem Käufer zu drohen, und zwar in massiver Weise, wenn er nicht Ruhe gibt. Das sind die wahren Machenschaften von Nakheel und Co. wie Emaar , Al Fajer Properties und wie sie so alle heisen, die grossen renomierten die sich gern auf gigantischen Messeständen und in den Medien als die vertrauenwürdigen von Dubai darstellen.

Bezeichnend daher auch der Satz am Ende der Rede von Sheikh Mohammed bin Rashid als Maktoum and der FU Berlin: Many Leaders promise – we deliver.

Wenn man annehmen könnte, der Mann wisse nicht was in seinen eigenen Firmen wie Nakheel und der seiner Verwandten wie AL FajerProperties in Sachen Kundenfreundlichkeit von statten geht, dann könnte man ihm glauben.
Natürlich ist auch diesem Mann bekannt was tagtäglich in Dubai internationalen Immobilienkäufern mit unglaublicher Kaltschnäuzigkeit widerfährt und das tausenden eben nicht – delivered weerden wird …was ge-promised wurde.

Da fragt man sich natürlich: Warum läßt es dieser Mann zu, das auf diesem Weg das einst so PR reich aufgebaute Image vom Dubai Immobilienmarkt wie ein Kartenhaus zusammen brechen wird, das in Firmen wie Nakheel einstmals euphorische Kunden derart behandelt werden – damit der einstmalige Vertrauensbonus den die Kunden diesem Unternehmen entgegenbrachten – von Tag zu Tag auf Null sinkt ?
Teilweise haben Käufer mehr als 50 % der Kaufpreises gezahlt und warten seit Jahren darauf das auf der Baustelle mit den Arbeiten begonnen wird. Im schlechtesten Fall erhalten diese dann einen schlichten Brief mit dem Inhalt: Projekt gestrichen – Geld zurück, aber ohne Zinsen oder Entschädigung.  Nach dem Motto: So wie es uns gefällt – nach dem Grund fragt man besser nicht – denn eine Antwort wird man nach der 100ersten Anfrage so oder so nicht bekommen.
Hinhaltetaktik, ein Flipping Spiel …..nichts sagen, nichts schreiben ist besser als jede weitere Ausrede die dann vielleicht noch zur Lüge motiert, besser Hoffnung und Geduld suggerieren , das funktioniert anscheinend.

Käufer warten Jahre hoffnungsvoll auf ihr Haus oder Apartment für das sie bereits die geforderten Raten gezahlt haben und finden dann nach Jahren Nichts oder etwas vor was so nicht gekauft wurde, was in den Hochglanzbroschüren und selbst in Verträgen so nicht angegeben war.  Auch hier, ganz einfach nach Dubai Art. Wenn s dem Käufer nicht passt: Geld ohne Zinsen oder sogar nur einen Teil des gezahlten Gelde zurück… und tschüss.

Der letzte Hit um angebliches Vertrauen zu schaffen:

Der Gesetzgeber hatte nun ein Einsehen und erließ Vorschriften, die die Entwicklungsgesellschaften zwingen, den Kaufpreis bis zur Fertigstellung einer Immobilie auf einem Treuhandkonto anzulegen. Dort sind sie vor dem Zugriff der Gläubiger sicher.

Doch Achtung, auch diese könnte reiner Kulissenzauber sein.

In den Vereinigten Arabischen Emiraten gibt es in der Regel keine “Häuslebauer”, die ihre eigenen vier Wände nach Maß errichten lassen. In der Praxis werden vor allem Ausländer Immobilien zunächst von einer der großen Projektentwicklungsgesellschaften erwerben. Dabei handelt es sich meist um halbstaatliche Firmen wie Emaar, Dubai Properties, Nakheel (Dubai), Mubadala, TDIC (Abu Dhabi), Tameer (Sharjah) oder RAK Properties (Ras Al Khaimah), um nur die größten zu nennen. Diese Megagesellschaften treten zwar in privatrechtlich organisierter Form auf – in der Regel als Aktiengesellschaften oder Holdings – befinden sich aber zum Großteil in Hand des Staates beziehungsweise in Händen der Entscheidungsträger in Staat und Gesellschaft. Von ihnen erwirbt der Käufer dann Eigentum, Nießbrauch oder ein ähnliches Nutzungsrecht – was Ausländern ohnehin nur in besonders ausgewiesenen Gebieten möglich ist.

Harsche Bedingungen für Erwerber

Im Normalfall sind die Verträge nicht aushandelbar, der Käufer wird vor die Wahl gestellt “friss oder stirb”, und das letztere ist beinahe wörtlich zu nehmen – bedenkt man das finanzielle Risiko, das dem vertraglichen Ungleichgewicht in der Regel anhaftet. So verwendet zum Beispiel Emaar eine Allgemeine Geschäftsbedingung, nach der bei Verzug einer einzigen Kaufpreisrate der Verkäufer – also Emaar – zur Kündigung des Vertrags berechtigt ist und die bereits angezahlten Raten nicht rückerstatten muss, sofern eine Mahnung erfolglos geblieben ist. Unabhängig von ihrer bereits geleisteten Höhe verfällt dann die gesamte Anzahlung – eine mehr als harsche Konsequenz für den Käufer.

Umgekehrt kann es passieren, dass der Käufer den Kaufpreis beinahe abgestottert hat und das Projekt – aus welchen Gründen auch immer – nicht oder nicht ordnungsgemäß fertig gestellt wird. In der Praxis ist es gang und gäbe, Apartments sofort nach der Planung zu verkaufen. Eigentum oder Nutzungsrechte kann der Käufer erst nach Fertigstellung eintragen lassen. Zuvor muss er alle Raten gezahlt haben. Sicherheiten hat er keine – sieht man einmal von der Quasi-Vormerkung ab, die Art. 24 Abs. 2 Dubai Land Registration Law (Gesetz Nr. 7/2006) normiert. Entspricht das Apartment nicht dem Kaufvertrag oder wird es nie fertig gestellt, dann nützt dem Käufer auch eine Vormerkung wenig. Er muss in langwierigen Prozessen versuchen, an sein Geld zu kommen. Fällt die Entwicklungsgesellschaft in Konkurs, sieht er im schlimmsten Fall keinen Dirhem wieder.

Genau hier setzt der Gesetzgeber den Hebel an. Das Dubai-Gesetz Nr. 8/2007 über Sicherheitskonten für Immobilienentwicklungsprojekte bedient sich einer doppelten Strategie – Einrichtung von Sicherheitskonten und höhere gewerberechtliche Anforderungen an Entwicklungsgesellschaften.

Sicherheitskonten

Zum einen sind die Entwicklungsgesellschaften gehalten, Treuhandkonten einzurichten, auf die die Zahlungen der Käufer eingehen. Darüber hinaus sind Darlehen Dritter, die mit dem Projekt dinglich abgesichert werden – etwa im Wege einer Hypothek – auf das Konto einzuzahlen. Dort ist es der Verfügungsgewalt der Entwicklungsgesellschaft entzogen. Erst nach Bescheinigung der Fertigstellung (arab. schahâda al-indschâz), also nach Abnahme, sind 95% der Beträge frei gegeben. Die Gelder sind jedoch zweckgebunden und dürfen ausschließlich dafür verwendet werden, Ausgaben des Projekts zu decken. Eine Stufenabnahme ist denkbar, so dass nach jedem Bauabschnitt über die Freigabe der Gelder zu entscheiden ist. Die Verfügungsgewalt über die restlichen 5% bekommt das Unternehmen erst, nachdem ein Jahr verstrichen ist, seit die Erwerber als Eigentümer oder Nutzungsberechtigte in das Grundbuch eingetragen sind. Dadurch wird das Unternehmen zur zügigen Umschreibung der Eigentums-/ Nutzungsrechte und der Beseitigung von Mängeln, die dieser entgegenstehen, angehalten.

Für jedes Immobilienprojekt ist ein solches Konto zu eröffnen (Art. 9 Abs. 2). Eine Entwicklungsgesellschaft richtet also so viele Konten ein, wie sie Projekte hat, wobei ein Projekt auch aus mehreren Gebäuden bestehen kann, sofern diese einen “Komplex” bilden. Das Gesetz definiert nämlich die “Entwicklung” (arab. tatwîr) als ein Projekt für mehrstöckige Gebäude oder einen “Komplex” (arab. mudschamma’ât) für Zwecke des Wohnens oder der Ausübung eines Handelsgewerbes (Art. 2).

Gläubiger der Entwicklungsgesellschaft haben keinen Zugriff auf das Geld. Sie können die Sonderkonten nicht pfänden (Art. 9 Abs. 1).

Spezielle Registrierungs- und Lizenzierungspflichten

Zum anderen dreht der Gesetzgeber an der gewerberechtlichen Schraube und verschärft die Anforderungen an Projektentwicklungsgesellschaften. Diese müssen sich nun in ein spezielles Register beim Dubai Land Department, das unter anderem die Funktion eines Grundbuchamtes wahrnimmt, registrieren lassen (Art. 4). Zuvor müssen sie eine Lizenz des Dubai Department of Economic Development einholen. Sie dürfen kein Marketing mehr betreiben ohne schriftliche Genehmigung des Land Departments (Art. 5). Auch der Verkauf einer noch nicht fertig gestellten Immobilien bedarf einer Sondergenehmigung. Wird mit der Bauausführung nicht innerhalb einer Frist von sechs Monaten nach Erteilung der Genehmigung begonnen, löscht das Land Department die Gesellschaft aus dem Register (Art. 17). Bereits bestehende Unternehmen haben bis zum 28.12.07 Zeit, den neuen Anforderungen nachzukommen (Art. 18) – wobei das Land Department diese Frist nach seinem Ermessen verlängern darf. Die Behörde hat bereits angekündigt, Projekte, die zu mehr als 80% fertig gestellt sind, von der Pflicht zur Einrichtung eines Sicherheitskontos auszunehmen.

Zur Klarstellung: Das Gesetz gilt nur im Emirat Dubai. Andere Emirate haben bislang keine entsprechenden Regeln getroffen. Das Gesetz ist im Amtsblatt von Dubai Nr. 323 vom 28.6.07 auf den Seiten 5 – 11 verkündet worden. Es trat am gleichen Tag in Kraft. Eine englische Übersetzung stellt das Land Department unter http://www.dubailand.gov.ae/ld_website/PDFS/trust_law_eng.pdf zur Verfügung.

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