Naming the Dubai property scamsters
Posted on 05 May 2008 with no comments from readersMany thanks for the feedback on my modest scoop in the Emirates Business 24/7 newspaper today about the Real Estate Regulatory Agency investigating the accounts of four developers in Dubai.
And thank you for naming the names which may or may not be under due process at the moment. For obvious legal reasons I am not going to get into the business of making unsubstantiated allegations that will cause considerable damage to what may be legitimate operations.
My trust is with RERA which seems to be doing a fantastic job in transforming the Wild East of Dubai real estate into a mature property sector. It is going to be a rough ride, perhaps particularly rough for four companies, but CEO Marwan bin Ghalita and his team deserves the support of the sector at this time.
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An early indication that RERA is proving effective of sorting out disputes between off-plan buyers and developers came this week with the resolution of the allegedly missing monies in the Bonnington project in Jumeirah Village. All 250 buyers who paid deposits to Bonnington have reportedly now received their money back plus five per cent interest. Only 250 apartments were sold in this 900 apartment scheme which has now been cancelled. This is not likely to be the last case. But the Dubai Government is a very proactive organisation and will protect its market with the same determination seen in pushing ahead with real estate development in the first place.
RERA – Property Complaints -
NO REPLY FROM DUBAI
Marwan Bin Galita, chief executive of Dubai’s Real Estate Regulatory Authority (Rera), said :
“Miscommunication and lack of transparency are the major concerns among real estate investors in Dubai!
He added:
What is abnormal is to ask a question and never get an answer. This is what annoys investors.
We are sending e-mails to these developers and asking questions. They don’t tell us anything.
We, investors from Germany ask questions to RERA since 5th March 2008 and didn’t get an answer from RERA.
So… this is also abnormal !!!
In 2005 we bought an apartment directly from Nakheel It was promised us by Nakheel to give us the contract 14 days after paying the deposit. We paid the deposit, we didn´t get the contract. We paid the further installemts until June 2006 ( 45 % of total 775.00 Dhs). We wrote letters to Nakheel, no response no contract until June 2006.
August 2006 we got a letter from DMCC ( 100 % government) that Nakheel has cancel Falcon Tower in it`s current form.
We ask for the reason , we got the answer::It was just a decission of Nakheel Mangement.
DMCC told and confirmed us in November 2006, that they found a new developer for Falcon Tower. This developer will built the Tower in the current form under the same condition we once agreed with Nakheel, nothing will change, only the completion will be 6 month later in December 2008. So we agreed to be tranfered, to get our apartment in a 100 % residetial tower. They wrote us that the contract will be given to us by the new developer.The new developer was Al Fajer Properties ( ownded by Hasher Al Maktoum).
Since November 2006 AFP leave us the illusion everything is going smooth. We ask again and again for the contract, meanwhile with our lawyer.
We wrote endless letters since that time to AFP. In November 2007 we ask for a meeting together with our lawyer. Here the CEO AFP, Dr. Shahram Zadeh told us, it will be better for to give up, because Al Fajer will now built only commercial tower. Falcon Tower will now be named Jumeirah Business Centre 8.
The general message given by Dr. Shahram Zadeh was: Give up, this will be the best for you. He offered a compensation of 80.000 Dhs,that´s it, he said, what we consider is a bad joke.
If we wish to proceed, he will give the tower only 1 or 2 floor residential,the rest will be offices. He called this 99% commercial and 1 % residential construct a MixedUse Building. But I advice you,he said, this is the worst situation you can have, to live in a building which is going 99 % commercial.
For this option he gave us a contract,without any drawings of the unit and building, without any specifications. The contract was to this peppered with unfair conditions, a contract which was absolute not signable.
Januar 2008 AFP pushed us to sign the contract by saying: Deadline to decide 1 week, if you don`t agree we chancel every right and refund only the paid monies ,without compensation.
We didn`t agree to this and the case was given from us to RERA March, 5th. 2008.
Starting March 10th, 2008 we got absolute aggressive letters from Denton Wilde Sapte, lawyers AFP. Our lawyer answered, they ignored our statements ,simply sent a cheque via courier to our lawyer. This cheque was not accepted and returned from us to AFP.
Instead of staying to their word AFP kick us out with illegal methodes? Our illegal canceled unit today is worth 1.7 Mio. Dhs.
We are from Germany an had convert Euro to Dhs in 2005/2006. The convertion rate at this time it was 74.000 Euro.
The offered refund of AFP is 345.000 Dhs, which is today 60.000 Euro.
3 years without interest, 14.000 Euro currency loss, no apartment plus additional cost for our lawyer etc.
AFP is causing us a damage around 800.000 Dhs.
May we remind RERA :
“What is abnormal is to ask a question and never get an answer”
We have sent our complaint to RERA Dubai in March 2008 …no answer… !!!!.. we are still waiting for an answer