Tamweel-Forced to take possession in Remraam

[Good Fellas]

Hi Peter,

 

Please need your advise on my case.

 

I have mortgaged/purchased the property through Tamweel @1300 Dhs per sqft. 1 bedroom apt. Paid total of AED 65K to date way back in Sep 2008. As per Tamweel I have to start paying my monthly installments @AED 9K x 25 years + rental fee of AED110K upon possession.

 

Letter will be sent early November for me to take possession since they claim that they have paid 100% to DPG already. So regardless of whether I complete the snagging or not I have to take possession and start paying their monthly installments. They told me to keep sufficient balance in my bank account since the security cheques has been deposited already and 3 warnings will be issued if the cheque bounces after which case will be referred to Dubai Police/Court.

 

I also told them that my apartment no. has been changed for which they said that is normal and it is the standard procedure for all apartments.

 

I told them we are in the process of filing a petition and sent out legal notices to DPG through BUSIT LEGAL. They are saying it is none of their concern since they have paid everything on my behalf to the developer which is AED 1.1 Million and that I owed them this sum. I said to them you have paid only AED 525K to which they said the balance is their profit which has been already accounted in their balance sheets so they cannot offer any discounts nor they can reduce the interest rate which is 8.4%.

 

Please advise if I can take any action on this as this is totally unfair on their part.

 

Thanks

Sandy

On Tue, Oct 11, 2011 at 5:06 PM, Peter <peterhudson...@gmail.com> wrote:

BEWARE......IT'S A TRAP !!!

DPG and Dubai Bank (incidentally owned by Dubai Holding which is the
parent company of DPG too) know that contractually they are on an
extremely weak wicket!!

Investors are not obliged to take possession of the apartment if they
were offered after 30th June 2011. The Contract requires them to
refund the money if they were not able to give "POSSESSION and
OCCUPATION" (not completion) before 30th June 2011 .........and they
know it.

The strategy they have now devised to buy time and keep everyone busy
is to do a mock "Snagging exercise".  They will try to fool investors
into visiting the premises, to conduct a snagging visit and make them
sign the snagging inpection sheet after listing down your snags.

ONCE YOU DO THAT, THEY HAVE YOU TRAPPED, AS IT IS A TACIT AGREEMENT
THAT YOU ARE PARTICIPATING IN THE HANDOVER PROCESS.  BY SIGNING THAT
SHEET, YOU IMMEDIATELY SIGN AWAY ANY RIGHTS (or chances) TO A REFUND
AND CANCELLATION.  ADDITIONALLY, immediately after you sign the
snagging inpsection sheet, the Bank will pay DPG (internal book
transfer only) and start charging you the interest for it !!!

The way to avoid this, is to ask for a date of possession in writing
before you agree to do a snag visit, i.e after how many days of doing
the snagging will they give you actual possession with Electricity and
Water.

They can't give you a possesion date because there is no power and
water connection as yet and they don't know when the property will
actually be ready to offer for possession.

They will try and trick you into attending this mockery of a snagging
exercise by saying that if you don't attend, they will do the snagging
for you.  Don't worry as unless you yourself sign the possesion paper,
their exercise has no validity !!!  Additionally you have a one year
defect liability period during which all unknown defects are to be
rectified by them regardless of whether or not you identified them
during the snagging exercise.

Of course one always has the other option of quietly attending the
'snagging option', signing the sheet, start paying the interest and
still not get your property till December  11 / January 12 !

Hope that helps!

On Oct 9, 11:29 am, Rajesh Vasdev <rajesh.vas...@gmail.com> wrote:
> I have an apartment in Phase 1 financed through Dubai Bank - S2-3A4.
>
> Have received a snagging request from Cluttons retained by Dubai Bank.
>
> Appreciate your advise as to what are my options/ what should I be doing?
>
> Regards,
> Rajesh.
>

> On Sun, Oct 9, 2011 at 1:12 AM, Peter <peterhudsoninvestme...@gmail.com>wrote:

>
>
>
> > Sheilabee,
>
> > Phase 3 is likely to be delivered not before mid June 2012 (assuming
> > your building is under construction) or thereabouts but with DPG you
> > never know.  Best to ask them although they themselves have no clue!!!
>
> > Their Constrcution schedules are completely out of control and with
> > the group struggling for day to day financing, progress at Remraam has
> > been a victim of their poor strategizing and non existant project
> > management.
>
> > Now that you are away from the UAE, you have several options......
>
> > What you should do with your apartment depends largely on:-
>
> > a) The extent of your equity in the apartment i.e how much of your own
> > money is invested and what price per square foot you booked it at.
>
> > b) Whether you have mortgage finance or not and if you are paying your
> > EMI's regularly
>
> > c) If yes, is it Sharia or non sharia based mortgage
>
> > d) If Sharia based, from which bank
>
> > Ultimately it's a commercial call.  With REMRAAM apartment prices
> > expected to trade in the AED 400-550 per sq. ft (gross area) range
> > once the apartment handover commences in January 2012, and property
> > prices (for apartments only) not likely to start rising till late
> > 2014-2015, you would need to see if your strategy is to hold long term
> > (till 2018-2020) to recover your investment plus your holding costs.
>
> > Every investors purpose and investment horizon varies, as do their
> > individual circumstances.
>
> > It's good to discuss this with a couple of experienced investors to
> > get their views and help clarify your own thinking.
>
> > Good luck
>
> > Peter
>
> > On Oct 8, 8:24 am, sheilabee <sheila.b...@gmail.com> wrote:
> > > hello every one
>
> > > i live in india now and have been following all these discussions
> > > closely .
> > > theres so much confusion as to what the deleivery date on my remraam
> > > apartment.
>
> > > would like advice on what to do if the apartment is ready for handover
> > > and im not in the country.
>
> > > please help.
>
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[Peter]

Sandy,

I don't know enough about the particulars of your case to be able to
offer any meaningful advice. An appropriate strategy for cases
related to Remraam properties sold by Tamweel would depend on:-

a) What phase was the property you originally booked?

b) Has your originally booked apartment been constructed or are they
trying to palm off an alternate apartment to you? Please note that
the apartment you booked has to be delivered to you by Contract and
not an alternate apartment of their chioce. That is of course
assuming you did not sign a amendment agreement agreeing to do so.
The same apartment could be given a different number due to a changed
numbering system but regardless of the apartment number, it has to be
the same apartment that you booked.

c) What is the contractual delivery date in your contract with DPG/
Mizin and/or with Tamweel.

d) If it was 30th June 2011 (originally 30th June 2010, but
contractually permitted to be extended by 4 quarters, i.e 30th June
2011) did you send them a notice of termination on 1st July 2011 or
subsequently. (A notice of termination followed by a termination
letter after 30 days is the first step towards the legal termination
of your Sale Purchase Agreement)

e) Is your finance Sharia based or non Sharia

f) Have you paid all your EMI's till date i.e you have not defaulted
on any of your payment obligations

A few other aspects.

What TAMWEEL paid to DPG is irrelevant as your purchase is from
TAMWEEL and you are bound / obliged by only the provisions of that
agreement.

I do hope you have consulted a good lawyer and are actively managing
your case. This is serious business with serious outcomes, so my
advice would be to not take it lightly at all and devote the required
time, attention and resources to it.

Petitions have no legal value and more often than not serve little
purpose. A legal notice/ legal action does have contractual value and
should not be neglected.

I'd be happy to share my thoughts on your particular case once I know
a bit more about it but would strongly recommend you taking GOOD legal
advice too.

Cheers

Peter

[Good Fellas]

HI Peter,

Please see my reply in Italic font.

Appreciate your advise.  I am already in touch with few lawyers all who give different advise.

Thanks

Sandy

 

On Wed, Oct 12, 2011 at 8:51 AM, Peter <peterhudson...@gmail.com> wrote:

Sandy,

I don't know enough about the particulars of your case to be able to
offer any meaningful advice.  An appropriate strategy for cases
related to Remraam properties sold by Tamweel would depend on:-

a) What phase was the property you originally booked?

Phase 1. My apt no. is S1-21-C5. On the DPG plan my apartment is nowhere to be seen. When I checked with Tamweel & DPG they said the apartment no. has been changed however my total area of 846 sq.ft is unchanged and also the floor has been moved from Podium to 1st floor. As per them it is normal and they have got authorisation from RERA to do so.

 

b) Has your originally booked apartment been constructed or are they
trying to palm off an alternate apartment to you?  Please note that
the apartment you booked has to be delivered to you by Contract and
not an alternate apartment of their chioce.  That is of course
assuming you did not sign a amendment agreement agreeing to do so.
The same apartment could be given a different number due to a changed
numbering system but regardless of the apartment number, it has to be
the same apartment that you booked.

 

I have not signed any amendment agreement todate and they are saying my apartment is the same. Only the unit no. has been changed.

 

c) What is the contractual delivery date in your contract with DPG/
Mizin and/or with Tamweel.

Contractual delivery is June 2010. As per Tamweel any delays caused should be handled between myself & DPG. Tamweel has got nothing to do with it since they have paid to DPG on my behalf. I said I have purchased through Tamweel to which they said that my contract is with DPG. Only mortgage is with Tamweel.

 

d) If it was 30th June 2011 (originally 30th June 2010, but
contractually permitted to be extended by 4 quarters, i.e 30th June
2011) did you send them a notice of termination on 1st July 2011 or
subsequently. (A notice of termination followed by a termination
letter after 30 days is the first step towards the legal termination
of your Sale Purchase Agreement)

Yes I sent a legal notice of termination through BUSIT LEGAL in July 2011 for which there was no reply from DPG. Tamweel signed the letter acknowledging that they received it however they said they cannot stop payments to DPG. By now they claim they have paid 100%

 

e) Is your finance Sharia based or non Sharia

Sharia based.

 

f) Have you paid all your EMI's till date i.e you have not defaulted
on any of your payment obligations

I have not yet started paying EMI's. I have to start paying once I get possession which as per Tamweel has to be in Nov 2011 regardless of whether I do snagging or not.

 

A few other aspects.

What TAMWEEL paid to DPG is irrelevant as your purchase is from
TAMWEEL and you are bound / obliged by only the provisions of that
agreement.

I do hope you have consulted a good lawyer and are actively managing
your case.  This is serious business with serious outcomes, so my
advice would be to not take it lightly at all and devote the required
time, attention and resources to it.

 

Already consulted BUSIT LEGAL who say I am on a weak ground.