Delay: Penalty for developers?

Extract from Arabianbusiness.com: Question asked to RERA boss Bin Ghalaita

Have you thought about introducing a penalty for developers who are late delivering?

Yes, I like this idea. But the way it is… when we introduced the laws, developers already existed. Contracts had already been signed. If you sign a contract, it is a contractual agreement, between you and the developer. I cannot introduce new articles or amendments to those contracts. But what we are doing is, we are already by law giving penalties to a developer if they are late or if they don’t submit documents. About AED10,000. And I have a penalty up to half a million I can impose on the developer. Half a million, and then I can make it a million, and then I can make it a million and a half.

But this is all regulation penalty, if they don’t share information with me, if they do a fraud on an investor… If they play tricks with the progress report. But if they are late, we are doing a new step now, at the Land Department we are introducing the Real Estate Investor Protection Law, and we are telling all the developers for the new contract: ‘if you are putting a penalty on the investor, you should put a penalty on yourself. It should be equal.’ And this is coming very soon, and we are encouraging all investors to ask for this clause in their contracts.

More:http://www.arabianbusiness.com/the-regulator-366578.html?page=2

Three Islamic banks consider merger with eye on Amlak target=

Three Islamic banks consider merger with eye on Amlak target=

Skycourts in Dubailand readies for handover target=

Skycourts in Dubailand readies for handover target=

Call for banks to support mortgage customers - Banking & Finance - ArabianBusiness.com

Call for banks to support mortgage customers - Banking & Finance - ArabianBusiness.com

Developers hang on to defaulters initial payments

Extract/ Highlights:
Developers in Dubai are no longer moving court against defaulters but are cancelling their sales and purchase agreements (SPAs) instead, retaining whatever monies have been paid till the time of default.

“We find that developers are generally looking to cancel sale and purchase agreements (SPA) using the provisions of Decree No 6 of 2010 with the assistance of the Land Department of Dubai, rather than take investors to court……

With the exception of a few cases, Ludmila Yamalova, Partner, Al Sayyah Advocates, says developers have not been pursuing investors in court for outstanding payments.

She believes one of the main reasons for this is that developers themselves may be in default of contractual obligations.

Particularly where construction has been significantly delayed, escrow funds mismanaged and regulatory registration requirements ignored.

Read more……Developers hang on to defaulters initial payments target=

Skywatch June 2010 - Skycourts official newsletter

Highlights of Skywatch June 2010 - Skycourts official newsletter

• Skycourts opens customer service centre in preparation of the project handover
  600-5222-60
• New Skycourts website launched: http://www.skycourtsdubai.com
• Scheduled delivery: Second half of 2010

Skycourters meet & family get together

14th May 2010, Friday from 5 PM onwards at Zabeel Park, Star Gates Entrance (Zabeel Park Gate 4). Please do confirm your attendance & forward suggestions through yahoo groups - http://groups.yahoo.com/group/skycourts/