Gold Crest Executive - Jumeirah Lake Towers
Amit Dattani
rakes...@gmail.com
Actually we need to ask them to compensate for the delay of 1 year,so let us talk and meet to sort this out,I have 3 units.
Good day.rgds.rakesh
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Rajoo Suchak
I have one unit and I too have received the mail. We should get the compensation.
Kind Regards,
Rajoo N. Suchak
rajoo...@gmail.com
P.
O. Box 32210 DUBAI, UAE
Mob: +971
55 9197770
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Amit Dattani
Amit Dattani
Thanks for the advice. I have found out ETA Star and Star Giga ask all their
property owners (Liberty House/Palladium) to issue a Corpus fund of that
amount. I am surprised as all other developers do not ask for undated
cheques. This Corpus Fund affects all Liberty House owners to.
Regards,
Amit
--------------------------------------------------
From: "yusuf husein " <churchi...@hotmail.com>
Sent: Sunday, September 13, 2009 1:33 PM
To: "Amit Dattani " <adatt...@hotmail.com>;
<dubai-proper...@googlegroups.com>
Subject: Re: [Dubai Property Investors] Gold Crest Executive - Jumeirah
LakeTowers
> My advice would be:
> a) stay calm, as everthings new territory here
> b) buy some time in a nice way with the developers consent
> c) get networking with other owners
> d) build a database as I'm doing with other 5evelopments and form an
> Interim Homeowners Association for which you need at least 51% . That
> gives you muscle for RERA to listen
> Yusuf Husein
> Sent from my BlackBerry® wireless device
Ali P
Majeure
This is a writeup on Force Majeure by Al Tamimi
Three critical elements to establishing a successful force majeure can
be extracted from the above provisions.
The first element is externality. The loss must arise out of an
extraneous cause in which the party played no part, ie the intervening
event was beyond the control of the party.
Secondly, the force majeure event must lead to impossibility of
performance, either partial or total. In an example involving the sale
of goods, impossibility may involve a situation where, without the
fault of either party, the subject goods are destroyed before the risk
has been transferred to the buyer.11
Finally, the “extraneous cause” must have been outside the
contemplation of the parties – the element of unforeseeability. Loss
or damage caused by a reasonably foreseeable event will not qualify as
force majeure, because steps can be taken to mitigate the potential
loss of a reasonably foreseeable event. A good example can be found in
the USA case of American Trading & Prod. Corp v Shell Int’l. Marine12
in which a marine carrier claimed that it had been discharged of its
obligations to deliver its cargo due to the closing of the Suez Canal
during the 1967 Six Day War. This argument was rejected on the basis
that the parties had contracted during a time in which widespread
media attention had been given to the decreased security situation in
the Middle East. It was held that a prudent merchant would have
planned an alternative shipping route or at least arranged for
increased insurance protection to meet any heightened costs associated
with the redirection of the cargo.
The question then becomes whether the impact of the credit crunch on a
party’s ability to perform their contractual obligations satisfies the
criteria or externality, unforeseeability and impossibility.
It is strongly arguable that in the case of the average investor, be
it an individual or a company, the health of the world’s financial
markets is outside their control. This is particularly so given that
the consequences of acts performed by say, American financial
institutions, can be felt across the globe.
With regards to impossibility of performance, in the case of a
property sale and purchase agreement, the complete lack of funds to
actually purchase the property will certainly stop a party from
fulfilling their purchase obligations. Of course, every case is
unique; however, there is an argument that the defaulting party could
arrange an alternative source of finance. Although lending in the UAE
has been severely restricted given the onset of the financial crisis,
it is still available, albeit at higher interest rates and with
additional qualifications such as lower loan to value ratios. The
degree to which funding is available to a party will therefore impact
on establishing whether that party’s performance is impossible.
The final element is foreseeability, in that the force majeure event
must have been outside the contemplation of the parties
(“extraneous”). Generally, if it is possible for parties to foresee
the risk that an intervening event may impact upon the performance of
their contractual obligations; the presumption is that they have
contracted with this risk in mind.13 However, it may be possible to
argue that the degree of the current financial crisis was
unforeseeable. Market volatility is without doubt foreseeable;
however, was the sudden collapse of historically solid financial
institutions like Lehman Brothers foreseeable? Was the abrupt and
significant drop in property prices across the UAE foreseeable?
Arguably, a degree of market movement is always foreseeable, but the
focus of the question must then shift to the extent of that movement.
http://newsweaver.ie/altamimi/e_article001365296.cfm?x=bff7PnT,0,w
This is by another firm:
Force Majeure
Another consideration is the concept of “force majeure” or exceptional
circumstances of a public nature which prevent the performance of a
contractual obligation. Where it is alleged that an obligation under a
contract cannot be performed due to force majeure, a contracting party
can approach the court with a claim to reduce the oppressive
obligation to a reasonable level. This is clearly stated in Article
249 of the Civil Code. It is also possible that force majeure could be
argued as a good defence in cases where natural crises completely or
partially prevent the performance of a contract. Examples of force
majeure in this regard are earthquakes, wars or floods. An Egyptian
court ruled in one case that, the 1967 war between Israel and Egypt
which caused the Suez Canal Authority to stop navigation in the canal,
is not a case of force majeure (in regard to that particular contract
in dispute) on the grounds that there were many signs publicly known
and widely disseminated that the state of war would soon be declared.
The contracting party, on entering the contract in question, was fully
aware of this fact.
http://www.hadefpartners.com/News/pageid/120-137/default.aspx?Mediaid=72
On Sep 14, 12:21 pm, "Amit Dattani" <adattani...@hotmail.com> wrote:
> Dear Rakesh & other owners,
>
> I had met Star Giga today to speak with the issues mentioned stating about delays/annual maintenance/corpus fund. This was their answers:-
>
> Delays?
> It is Force Majeure. SPA states 31/03/09 completion deadline. "I asked under what terminology can you state Force Majeure when both towers next to you are complete.?" No answer from them and said all payments must be received by 30th September or penalty will be applied for late payment.
>
> Annual Maintenance?
> SPA states provisional fee of approximately 8 AED sq ft. Under Star Giga "this clause means minimum 8 AED sqft not confirmed. Current maintenance rate for JLT is 10 to 12 AED sqft approved by RERA therefore they are adhering to the RERA law."
>
> Corpus Fund?
> This is written within clause 8.1 © of The Budget. Provisional Service Charge ...
> Star Giga"Stated this cheque will not be cashed in until Owners association is formed after 1 year and whenever anything not functioning such as elevators/plumbing pumps etc.. apart from structural work will be paid by the owners of the building.
> I have asked why 50 AED sqft which is almost 5 to 8% of original purchase price. Why not let the owners association decide on the policy and costs. As am surprised for a one year old building to start having problems. It is owners association who should decide on amount not Star Giga even though it is an undated cheque.
>
> Lets meet end of week and hopefully if there are other Gold Crest Exec. owners out there we can all consolidate and raise these issues.
>
> Regards,
> Amit
>
> Sent: Sunday, September 13, 2009 1:19 PM
> To: dubai-proper...@googlegroups.com
> Subject: [Dubai Property Investors] Re: Gold Crest Executive - Jumeirah LakeTowers
>
> Mr amit,
>
> Actually we need to ask them to compensate for the delay of 1 year,so let us talk and meet to sort this out,I have 3 units.
> Good day.rgds.rakesh
> Empower your Business with BlackBerry® and Mobile Solutions from Etisalat
>
tajmahalr...@gmail.com
Dubai Group had 'waves of layoffs' <http://www.google.com/url?sa=X&q=http://www.thenational.ae/apps/pbcs.dll/article%3FAID%3D/20090915/BUSINESS/709159862/1005&ct=ga&cd=NYvAOpEHdSs&usg=AFQjCNG70wmv6ERJzdHmBjfpDFvMqBJv2Q>
National
ABU DHABI // Dubai Group, the financial services and investment arm of Dubai Holdings, has cut more than 70 per cent of its staff since the financial crisis ...
Empower your Business with BlackBerry® and Mobile Solutions from Etisalat
tajmahalr...@gmail.com
We want only to stay <http://www.google.com/url?sa=X&q=http://www.thenational.ae/apps/pbcs.dll/article%3FAID%3D/20090919/PERSONALFINANCE/709189910/1056/BUSINESS&ct=ga&cd=CroLccxNwPI&usg=AFQjCNE7uJ_UG5M4FhxvPDvLAwfLTvL6gw>
National
“In Dubai, there's been a freeze on investor-based visas, so developers can no longer provide visas. You'll not receive a visa from developers in Abu Dhabi, ...
rakes...@gmail.com
jetfox
I just read your article about Goldcrest.
I have the same problem and even worst.
I own a 1 bedroom with balcony but in the contract is only mentioned
the sqft of the living area. Now after 4,5 years they want me to pay
extra 180.000,-DH just for the balcony area.
Unbelievable.
We should really all come together and open a case against ETA,
especially for being more than 1 year late AFTER the longstop date.
I send them already complain letters and even a letter from Notary
public without any answer.
If you need anything call me
050 4580462
Best regards
Eric
Amit Dattani
I had meeting with ETA and informed them about the lateness on handover to
which they simply said, Force Majeure. Means nothing. According to the SPA
it states 30th March 2009 last date for completion.
It is over 6 months beyond their handover date.
I suggest let us all meet end of week and this way forward to solve this
issue and hoping as handover delayed the 1st year maintenance fee should be
voided as it seems only fair.
Regards,
Amit
--------------------------------------------------
From: "jetfox" <bavari...@gmail.com>
Sent: Thursday, October 01, 2009 7:26 PM
Subject: [Dubai Property Investors] Re: Gold Crest Executive - Jumeirah Lake
Towers
>
jetfox
I have been yesterday at the lawyer and I am waiting for there
response,if we can file a succesful case or not.
If not we should all meet(try to get many more owners by pretending we
are buyers) and either complain as a group or put it in the news
paper.
Regards
Eric
On Oct 4, 1:07 pm, "Amit Dattani" <adattani...@hotmail.com> wrote:
> Dear Eric,
>
> I had meeting with ETA and informed them about the lateness on handover to
> which they simply said, Force Majeure. Means nothing. According to the SPA
> it states 30th March 2009 last date for completion.
> It is over 6 months beyond their handover date.
>
> I suggest let us all meet end of week and this way forward to solve this
> issue and hoping as handover delayed the 1st year maintenance fee should be
> voided as it seems only fair.
>
> Regards,
> Amit
> --------------------------------------------------
>
> - Show quoted text -
fa2...@gmail.com
There is a new law cooking up. We have not been able to get any information on it. We have heard that this is regarding arbitration and the cancellation process but we are not sure. Will inform you as soon as we hear something concrete.
Regards,
Farah
-----Original Message-----
Fuadsmile
Ali P
16. Note that the statute has not yet been defined for which type of
disputes can be brought to the center.
WAM Dubai, Sep 24th, 2009 (WAM): Vice President and Prime Minister of
UAE and Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum, in
his capacity as the Ruler of Dubai, has issued six laws and two
decrees which took effect from the day of its promulgation and
publication in the official gazette.
The Law No.16/ Year 2009 regarding the establishment of a centre for
amicable settlement of disputes contains 16 articles. The centre will
examine the disputes, which are to be defined by a statute from the
chairman, whatever may be the nature of them and the values involved.
Cases to which the government is a party as well as the cases
necessitating temporal order or summary proceedings will be exempted
from these disputes. The cases which do not fall under the
jurisdiction of the courts of law as well as the cases which have been
filed before the issuance of this law will also be exempted from this
category.
The law also stipulates that the disputes will be presented before the
centre, where a panel of experts led by a judge will endeavour to
settle them amicably. Any dispute which comes under the jurisdiction
of this category will not be filed before a court of law until it is
tried by the centre for reaching an amicable settlement and
transferred to the court if a settlement is not reached.
http://www.wam.ae/servlet/Satellite?c=WamLocEnews&cid=1248235763164&pagename=WAM%2FWAM_E_Layout&parent=Query&parentid=1135099399852
Tabrez Mohammed
http://www.business24-7.ae/Articles/2009/9/Pages/26092009/09272009_c653d77fb7ff4f17b1509163894b4280.aspx
By Parag Deulgaonkar on Sunday, September 27, 2009
Investors
can file a criminal case against a developer only if the reason for
developer's default is criminal in nature and there is evidence to
prove it, according to a lawyer.
"Investors can file a criminal
case against a developer on the basis that it has not started a project
and/or opened an escrow account, but only if the reason for developer's
default is criminal in nature, and there is evidence to prove it on its
face," Ludmila Yamalova, Legal Consultant/Partner, Al Sayyah Advocates
& Legal Consultants, told Emirates Business.
Raza
Mithani, Senior Associate, Al Tamimi and Company, Advocates & Legal
Consultants, said: In Dubai, a criminal case may be filed where there
is evidence of fraud. Failure to open an escrow account may, depending
on the circumstances, constitute evidence of fraud."
Tatjana
Fuhr, Legal Consultant at Fichte & Co Legal Consultancy and KK
Sarachandra Bose, Partner and Corporate, Commercial and Contract
Lawyer, Dar Al Adalah Advocates & Legal Consultants, agreed that a
buyer can file a case against a developer who has not started the
project and collected funds without opening an escrow account.
However,
Ashraf Sayed, Associate, Real Estate, Hadef & Partners, said this
depends on the location of the development and the actions of the
developer. "In general, unless executives of the developer have
committed clear criminal acts, it is unlikely that a criminal case
would be taken up by the police/public prosecutor," he added.
Can investors file a criminal case against a developer who has not started a project or opened an escrow account?
Mithani:
In Dubai a criminal case may be filed where there is evidence of fraud.
Failure to open an escrow account may, depending on the circumstances,
constitute evidence of fraud. Failure to commence construction in
itself is a civil matter, unless there is some evidence of fraud.
However, Article 17 of Law No8 of 2007 provides that if construction
has not commenced within six months of the date that approval was given
to sell off plan without an acceptable excuse, a developer shall be
cancelled from the register. That, of course, would be a regulatory
rather than a criminal matter.
Bose: The buyer
can file a case against a developer who has not started the project and
collected funds without opening an escrow account.
Yamalova:
Investors can file a criminal case against a developer on the basis
that it has not started a project and/or opened an escrow account, but
only if the reason for the developer's default is criminal in nature
and there is evidence to prove it.
Misrepresentation and
cheating are some examples of criminal acts under the UAE civil code.
Similarly, under Dubai Law 8 (escrow law), criminal sanctions will be
imposed where a developer either: 1)"knowingly offers to sell units in
bogus property development" or 2) "embezzles, uses or squanders
payments delivered to him for the purposes of construction of property
developments, and misappropriates such sums."
For a case to be
considered criminal there has to be undisputed or clear evidence to
that effect, sufficient to convince the public prosecutor. Thus, for
example, if there is a written statement from a developer himself
admitting that he had never had any right to the property, but yet
represented to the public otherwise, such written evidence may be
sufficient.
More often than not such evidence does not exist, at
least at the outset. Instead, further investigations must be conducted.
This arises in cases where a contract is at issue, therefore,
necessitating contract interpretation. In such cases, a public
prosecutor will transfer the case to the Civil Court. At that point,
the Civil Court will lodge an investigation, often by hiring an expert,
to determine the nature of the claim. If at any point in the process,
the court finds a developer's conduct was of a criminal nature, it will
transfer the case back to the prosecutor.
Today, many investors
try to file criminal cases first, mainly to use as leverage.
Increasingly, however, the public prosecutor transfers such cases to
the Civil Court. At that point, investors have to start from ground
zero again.
Fuhr: Yes, investors might be able
to file a criminal case against the developer for fraud and
embezzlement. Furthermore, for Dubai, the escrow account law (Art 16
Law No8, 2007) provides a catalogue of elements of offences that
justify a fine of no less than Dh100,000 or penalties of incarceration
to anyone who, for example, embezzles, uses and squanders payment
delivered to him for the purposes of construction of property
developments and misappropriates such payments. Another offence
according to the escrow account law is to carry on property development
business without a licence.
Sayed: This depends
on the location of the development and the actions of the developer. In
general, unless executives of the developer have committed clear
criminal acts, it is unlikely that a criminal case would be taken up by
the police/public prosecutor. It should be noted that not all emirates
have escrow laws and certain emirates have its own process for dealing
with developers that are alleged to have delayed a project or failed to
establish an escrow account. For example, in Dubai, Law No8 of 2007
concerning escrow accounts of real estate developments in the emirate
of Dubai (escrow law) deals with escrow accounts for real estate
projects located in Dubai. Article 7 of the Escrow Law requires an
escrow account to be established for each project; however, in practice
there are exceptions. Two other emirates in the UAE have laws similar
to the escrow law, Umm Al Quwain Law No3 of 2007 in respect of security
accounts of real estate (security account law) and Ajman Emiri Decree
No12 of 2008 amending Emiri Decree No8 of 2008 (Decree No12). Together
the escrow law, the security account law and Decree No12 (the escrow
account laws) contain similar principles and themes.
In the case
of the escrow account laws, penalties are set out that allow the
respective competent authorities in the relevant emirates to levy fines
and/or seek an order for terms of imprisonment against those who breach
these laws. If there has been a violation by any party of the escrow
account laws then without prejudice to any punishments stipulated by
other legislation [for example the civil code or the penal code], fines
and/or imprisonment may be imposed. Such breaches cover a wide range of
issues, including embezzlement or use without justification of funds
collected for the construction of real estate projects.
So far
as we are aware no other emirates in the UAE currently operate laws
similar to the escrow account laws, although we understand that Abu
Dhabi is close to issuing one. Accordingly, in other emirates, the use
to which the developer can put funds paid in respect of off-plan
properties will be governed by the particulars of the agreements
between the parties and general principles of law. If the agreement has
no restriction on the use to which the developer can put funds paid as
a deposit, then the developer may argue it is able to use those funds
for any corporate purposes and the purchaser's remedies lie in general
breach of contract if as a result of that action the development
project is not delivered within the time frames specified in the
agreement.
It is also worth noting that in addition, Article 404
of Federal law No3 of 1987 (Penal Code) generally makes it a criminal
offence for a party who has been given funds on trust for a certain
purpose to use those funds for another purpose, which could be a breach
of trust or fraud and there are a range of criminal penalties for
breaching the Penal Code. The ability to sustain a claim under the
Penal Code, however, will be dependent on whether it was clear from the
agreement that the specific funds paid by the purchasers were to be
used solely for the development or whether they would constitute the
general funds of the developer and subsequently the developer could
substitute or replace those funds. Please note that delays concerning
real estate projects are usually a breach of contract issue.
Is it advisable for people/investors to group together and file cases against a developer? Does such a move help them?
Mithani:
While it is possible for investors to group together and file a
complaint with the regulatory agency, it is not possible to bring class
action in the UAE Courts. This contrasts to jurisdictions such as the
US where class actions are a common feature of the legal landscape.
Bose:
Such a grouping may help the regulatory agency to handle disputes
collectively rather than addressing it one by one. Investors may
benefit as they can appoint a law firm to represent them before the
authority and in the courts if needed.
Yamalova: Investors
acting in concert against the same developer are very effective. There
are limitations, however, as to in what capacity they can group
together.
For example, for the purposes of bringing a legal
action in a UAE court, such collective actions are not allowed. In
other words, class action suits are not within the purview of the UAE
legal system, as far as courts are concerned. Therefore, investors have
to file individual lawsuits.
However, tremendous economies of
scale can be achieved in the due diligence necessary and/or helpful to
litigate a case. For example, investors can collectively hire one law
firm and/or experts to gather the factual evidence to be used in the
case and share the expense accordingly. Similarly, they can collect and
share research and knowledge among themselves. Also, not to be
underestimated is the leverage groups of investors gain on the
developer, Rera/Land Department, courts and the like. Their collective
voice is much louder and, therefore, harder to ignore. Also the safety
in numbers principle encourages greater number of people to come
together. Finally, investor groups take teeth out of developers'
attempt to set individual investor apart from all of the other
investors as being the only one in default.
Another benefit of
investors coming together is that certain judicial forums allow
consolidation of claimants and claims. For example, Dubai International
Arbitration Centre (DIAC) and Dubai International Financial Centre
(DIFC) allow for class action suits. Therefore, those investors whose
contracts provide for either arbitration or DIFC court will have an
additional benefit in joining forces.
Fuhr: Investors
can group up and file a complaint with the regulatory authority asking
to cancel the project. The more the majority of investors in a project
signing the complaint, the more likely their complaint will be heard.
Unfortunately if the investors decide to approach a court they will
have to file each case [meaning each single sales and purchase
agreement] separately, which means court fees and lawyer fees for each
case.
Sayed: The general legal consensus is
that the current UAE legal framework does not support class actions in
the sense prevalent in, for instance, the US legal system, except in
certain types of labour matter. As a result, to the extent investors
are in touch and have disputes involving the same developer, they might
approach real estate regulators on a collective basis to relay common
concerns. In Dubai, one should approach Rera, and in Ajman, Arra.
Groups often form by use of website forums or blogs, or by reference to
a large law firm which acts against developers. Pressure in numbers and
concern about adverse publicity would often make the real estate
regulator look more closely at investors concerns. Although we have
seen some levels of activity by real estate regulators where there are
issues of developer compliance with regulations, directives and
policies, if the matter of concern is a contractual dispute, this is
usually referred to the courts or arbitration bodies in accordance with
UAE laws and applicable contracts.
Should a dispute reach the
courts, an investor owning numerous units in the same project, may file
one case against the developer. However, the Dubai Courts usually
require an individual investor with more than one unit in the same real
estate project, to pay separate court fees for each unit particularly
where the investor holds separate sale and purchase agreements for each
of the units. Consolidation of cases where arbitration clauses apply is
similarly complicated. In the case of court action, separate investors
can only come together and file one case against the developer if all
the investors are party to one single sale and purchase agreement, a
situation that is uncommon.
How much cost benefit does such a move offer?
Mithani:
If the law as amended to allow parties to bring class actions, it would
offer significant benefits not only to individual litigants but also to
the administration of justice. First, it offers the advantage,
particularly in a legal system where there is no system of binding
legal precedent, that consistent decisions will be reached in cases
against a particular developer involving the same issues, such as delay
in construction. Second, it offers costs savings to both claimants and
defendants. This has particular relevance in a situation where there
may be an inequality of resources between the parties, as there may be
between a large developer and a number of small investors. If the
investors have the option of pooling their claims, there is a greater
chance of them being on a level playing field.
On the law as it
stands there is nothing to prevent a group of investors from
instructing a single lawyer, which may result in some costs savings and
may provide them with greater leverage but each case will be dealt with
separately by the courts. The costs savings will be less than if the
law permitted class actions.
Bose: Such a move
is cost-effective for the following reasons: they can be represented by
one person, preferably a lawyer specialised in property laws, rather
than spending money and time individually; they can appoint one lawyer
so that a reduced fee may be possible.
Yamalova: Collective
efforts by investors provide enormous cost benefit. First, as far as
legal and expert fees are concerned, they can share the expense.
Second, any costs incurred in gathering due diligence to litigate a
case can be also split across the board. Even bigger cost benefit could
be achieved if, because of their collective force, investors work out a
settlement with the developer without going to court.
Fuhr: There are no cost benefits since filing a complaint with regulatory agency is free of charge.
Sayed: As
discussed above, group court actions are not currently supported by the
UAE legal system. However, legal costs can be reduced by investors in
common projects appointing the same law firm and joint approaches being
made to the developer and the real estate regulators. It should be
noted that the real estate regulators in Ajman and Dubai have the
capacity to approve and cancel real estate projects in their respective
emirate. For instance, Article 5 of Dubai Law No9 of 2009 provides that
"the agency [Rera] may, following a grounded report, cancel a real
estate project, in which case the developer must return to the
purchasers all the amounts pad by them in accordance with Law No8 of
2007 [the escrow law]". Accordingly, it would seem that pressure from
investor groups would encourage real estate regulators to investigate
disputed projects especially where insubstantial progress has been made
over an extended period of time. Notwithstanding this power, there has
not yet been any officially published decision of the cancellation of a
project in such circumstances by real estate regulators based on
investor pressure. It is likely, however, that a number of projects
must be candidates for such action.
Investor groups should also
consider jointly approaching UAE law firms to receive generic legal
advice regarding a particular real estate project. Although court fees
would be payable per case file, investors could seek to reduce legal
fees by filing similar statements of claim in front of the court and
thus achieving economies of scale. It should be noted cases can differ
from one individual case to another even in the same project, for
instance due to different contracts, facts and investment timing.
Best Regards
Tabrez Mohammed
Ali P
'A UK-based investor, who owns a unit in Goldcrest Executive, said on
condition of anonymity that the developer had extended the handover
well past the ultimate long-stop date of March 31, 2008.
“But they refuse to pay compensation for late delivery under the
clearly laid out terms of my contract,” he alleged, adding that his
repeated calls to the developer had yielded verbal assurances that
compensation would be paid, but that was yet to happen.'
....
'A Star Giga spokesman said: “The delays were beyond our control and
we invoked force majeure after intimating the customers and Rera [Real
Estate Regulatory Agency]. Now, we have received the building
completion certificate for Goldcrest Executive and are in the process
of handing over the units. With regard to Goldcrest Views II, Star
Giga Establishment had invoked force majeure and the completion date
is now scheduled for January 31, 2010. It is 94 per cent complete
today."
Compensation to customers will be in accordance with the agreement.” '
http://www.xpress4me.com/news/uae/dubai/20015199.html
On Oct 7, 11:55 am, Tabrez Mohammed <muffa...@gmail.com> wrote:
> Dear Friends,
>
> http://www.business24-7.ae/Articles/2009/9/Pages/26092009/09272009_c6...
> By
> Parag Deulgaonkar on Sunday, September 27, 2009
>
> Investors can file a criminal case against a developer only if the reason
> for developer's default is criminal in nature and there is evidence to prove
> it, according to a lawyer.
>
> "Investors can file a criminal case against a developer on the basis that it
> has not started a project and/or opened an escrow account, but only if the
> reason for developer's default is criminal in nature, and there is evidence
> to prove it on its face," Ludmila Yamalova, Legal Consultant/Partner, Al
> Raza Mithani, Senior Associate, Al Tamimi and Company, Advocates & Legal
> Consultants, said: In Dubai, a criminal case may be filed where there is
> evidence of fraud. Failure to open an escrow account may, depending on the
> circumstances, constitute evidence of fraud."
>
> Tatjana Fuhr, Legal Consultant at Fichte & Co Legal Consultancy and KK
> Sarachandra Bose, Partner and Corporate, Commercial and Contract Lawyer, Dar
> Al Adalah Advocates & Legal Consultants, agreed that a buyer can file a case
> against a developer who has not started the project and collected funds
> without opening an escrow account.
>
> However, Ashraf Sayed, Associate, Real Estate, Hadef & Partners, said this
> depends on the location of the development and the actions of the developer.
> "In general, unless executives of the developer have committed clear
> criminal acts, it is unlikely that a criminal case would be taken up by the
> police/public prosecutor," he added.
>
> a project or opened an escrow account?*
>
> *Mithani:* In Dubai a criminal case may be filed where there is evidence of
> circumstances, constitute evidence of fraud. Failure to commence
> construction in itself is a civil matter, unless there is some evidence of
> fraud. However, Article 17 of Law No8 of 2007 provides that if construction
> has not commenced within six months of the date that approval was given to
> sell off plan without an acceptable excuse, a developer shall be cancelled
> from the register. That, of course, would be a regulatory rather than a
> criminal matter.
>
>
> account law (Art 16 Law No8, 2007) provides a catalogue of elements of
> offences that justify a fine of no less than Dh100,000 or penalties of
> incarceration to anyone who, for example, embezzles, uses and squanders
> payment delivered to him for the purposes of construction of property
> developments and misappropriates such payments. Another offence according to
> the escrow account law is to carry on property development business without
> a licence.
>
> against a developer? Does such a move help them?*
>
> *Mithani:* While it is possible for investors to group together and file a
> action in the UAE Courts. This contrasts to jurisdictions such as the US
> where class actions are a common feature of the legal landscape.
>
> they can appoint a law firm to represent them before the authority and in
> the courts if needed.
>
> group together.
>
> For example, for the purposes of bringing a legal action in a UAE court,
> such collective actions are not allowed. In other words, class action suits
> are not within the purview of the UAE legal system, as far as courts are
> concerned. Therefore, investors have to file individual lawsuits.
>
> However, tremendous economies of scale can be achieved in the due diligence
> necessary and/or helpful to litigate a case. For example, investors can
> collectively hire one law firm and/or experts to gather the factual evidence
> to be used in the case and share the expense accordingly. Similarly, they
>
> read more »
Amit Dattani
I went to ETA and had meeting with the accounts dept.
In regards to late handover, ETA have compensated since Dec 08 upto now. The
SPA stated if delayed from developer than 0.75% per month fee payable to
property owner.
I did not take the Corpus Fund cheque with me and ETA asked me to sign a
letter upon an association group for the tower has been formed whether being
one year or two this is upto the association group. Whatever payment
required shall be informed to all owners and paid within 10 days. This is
understandable as the expenses shall be handled by association members,
being formed by owners.
The annual maintenance covers the tower maintenance plus DMCC district
cooling fees.
The car parks are not yet allocated as DMCC are allocating these spaces.
I kept going to ETA for these issues and finally got resolved..
Regards,
Amit
--------------------------------------------------
From: "jetfox" <bavari...@gmail.com>
Sent: Tuesday, October 06, 2009 12:13 PM
ifthi...@gmail.com
They delayed more than a year &dont want to pay any compensation.
They are not at the least waiving the late payment fees
-----Original Message-----
rakes...@gmail.com
Amit,
Very good this is the experience each one has to share with each other and we will get the BENEFIT of being part of this group.
I have been negotiating for ONE YEAR free maintainence which is almost the SAME AMOUNT.
Any other experience,people wish they can share.
Rgds
-----Original Message-----
From: "Amit Dattani" <adatt...@hotmail.com>
Date: Tue, 13 Oct 2009 21:16:42
rakes...@gmail.com
Deyaar-customer care called up to check would I be interested in giving up 3 units out of my 6 units in FAIRVIEW RESIDENCY.They also have offered a discount of close to 20+ percent on the price.
For consolidation from 6 to 3,they asked us to lose 10 percent(which we agreed,since I have to pay nothing till handover and also ON HANDOVER,I have to pay VERY LITTLE amount,which is also in my capacity)and close the deal for PEACE for 30 months.(No threats,no defaults,no headaches).
All are welcome to do their own DEAL in their own way.
Above was my expereince.
Empower your Business with BlackBerry® and Mobile Solutions from Etisalat
-----Original Message-----
From: rakes...@gmail.com
Date: Wed, 14 Oct 2009 04:51:53
To: <dubai-proper...@googlegroups.com>
Subject: Re: [Dubai Property Investors] Re: Gold Crest Executive - Jumeirah LakeTowers
Hi,
Amit,
Very good this is the experience each one has to share with each other and we will get the BENEFIT of being part of this group.
I have been negotiating for ONE YEAR free maintainence which is almost the SAME AMOUNT.
Any other experience,people wish they can share.
Rgds
Empower your Business with BlackBerry® and Mobile Solutions from Etisalat
-----Original Message-----
From: "Amit Dattani" <adatt...@hotmail.com>
Date: Tue, 13 Oct 2009 21:16:42
Beny
Do you think they offered you this because they need your units to
offer it to Deyaar park investors? this way you lost 10% as well as
they get rid of Deyaar park investors, good thinking?
rakes...@gmail.com
That should be.
Thanks
Beny
backfilled again?
ifthi...@gmail.com
Pls advise Back filled means no basement made yet?
Construction stopped
rakes...@gmail.com
-----Original Message-----
dubaiinve...@gmail.com
UAE recovery to take longer than other Gulf states: bank <http://www.google.com/url?sa=X&q=http://www.google.com/hostednews/afp/article/ALeqM5icmTVb-3k4v_xe39V6l0Zdo1ijhA&ct=ga&cd=nTV8O0UD1zA&usg=AFQjCNHNrSsAvYHjPJWehvXh81r3-493Xw>
AFP
"The presence of high debt levels, weak bank lending, lower company profits and struggling real estate markets will continue to weigh on the economy for at ...
See all stories on this topic <http://news.google.com/news/story?ncl=http://www.google.com/hostednews/afp/article/ALeqM5icmTVb-3k4v_xe39V6l0Zdo1ijhA&hl=en>
dubaiinve...@gmail.com
ArabianBusiness.com
Dubai and Abu Dhabi need to create at least 100000 and 50000 white-collar jobs, respectively, to satisfy future supply of commercial real estate in the two ...
See all stories on this topic <http://news.google.com/news/story?ncl=http://www.arabianbusiness.com/570667-uae-needs-150000-white-collar-jobs-to-absorb-real-estate---nomura&hl=en>
dubaiinve...@gmail.com
<http://www.independent.co.uk/opinion/commentators/johann-hari/the-dark-side-of-dubai-1664368.html>
--
Mike
Dear Amit, and Friends,
I have office space in the same building...I recieved recently warning
that they wil terminate my SPA if I dont pay all what they are
asking. I have sent befor complaint email about the delay, but they
ignored it completely, and sent the warning.
the issues are :
1- the delay was in fact occuring long before the financial crisis. I
was following the progress since the begining, as I'm in construction
business, and i was visiting the area every now and then to follow my
business. I have sent them letter about delays since two years, and I
knew that it was impossible for them to hand over the project on time
long before the financial crisis. force measure is not applicable by
any means.
2- SPA says that office spaces will be handed over with paint. I did
the inspection... no paint on the walls!.
3- the building alltogether is not completed, and connot be used even
now, they only want us to pay because they dont have money...this is
illigal.
4- corpus fund is a surprize to every body, we can't trust them with
those undated checks.
I welcom a meeting next week any day any time....please let me
know....my email : munze...@yahoo.com
Dhanesh
process when one wants to renovate his own property, we are not touching the
exterior area so why do we need to go through all this hassle ???
I have told DMCC many times that due to this long and tedious process many
potential clients will not buy or rent property in DMCC and they should make
this area into a zone allowing Dubai companies to move their premises to and
not only for free zone companies.
Any comments from other owners ???
Amit Dattani
I understand the frustration everyone is through with developer for late
handover. I too was disappointed with ETA for all the delays and Corpus
Fund.
Spent time on a fortnightly basis with ETA and issue was resolved amicable.
As mentioned with previous emails, I suggest to all please do not waste more
money through lawyers etc.. be patient and keep going to developers office
weekly basis - become partner of the office furniture until you get
results..
Apologies I assumed developer paid interest penalty of 0.75% per month
actual fact.
It was 0.75% pa/365 x 273 x (amount paid already).. I dealt with Sathak from
collection department. sat...@etastar.com.
We were all informed of Force Majeure and yet ETA followed with clause 13
(13.1) from SPA giving us some reimbursement rather than nothing at all.
Good luck and let me know if you need more clarification for the above to
help with your issue with GoldCrest.
Regards,
Amit
--------------------------------------------------
From: <rakes...@gmail.com>
Sent: Wednesday, October 14, 2009 8:51 AM
To: <dubai-proper...@googlegroups.com>
Amit Dattani
Please deal with this person from ETA:-
sat...@etastar.com
He helped me solve all my issues. I own office 1711 and it has been painted.
You don't need to issue any undated Corpus Fund cheque, they will ask you to
sign an undertaking letter that is it.
Regards,
Amit
--------------------------------------------------
From: "Mike" <munze...@yahoo.com>
Sent: Thursday, October 15, 2009 11:50 PM
Subject: [Dubai Property Investors] Re: Gold Crest Executive - Jumeirah Lake
Towers
>
>