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
Monday, December 20, 2010
Wednesday, October 13, 2010
Sunday, October 10, 2010
Sunday, September 26, 2010
Monday, August 23, 2010
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=
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=
Saturday, June 26, 2010
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
Wednesday, May 12, 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/
Saturday, April 3, 2010
Can National Bonds Corporation turn a Nelson's eye?
Can National Bonds Corporation be mute spectator to what is happening to its bond holders for the issues faced in relation to ‘Skycourts’ the very first project that was launched with object of giving the bond holders homes at affordable prices or a decent return on investment. With no clue to the date of possession and because of delay in the project the bondholders are paying for living in rented houses. Also with properties prices taking a sharp nose dive sales or rent would hardly fetch any profit. There have been sustained efforts by the Skycouters to see that they get a reasonable deal but all the efforts are going down the drain with the banks and Deyaar turning deaf ears to their repeated pleas.
Two very important points come to fore:
National Bonds Corporation is still the owner of the property, Deyaar is just a manager
National Bonds Corporation is not a commercial property developer, profit earning is not it’s primary objective but it is an institution to help people earn decent return on their hard earned money
Given National Bond Corporation’s position in relation to the project and as one of government's frontline organization it can prevail upon financial institutions and the property manager. All is what the bond holders are asking for a reasonable pricing looking at the prevailing gloomy situation. The financing banks or companies to the project would readily charge for any delay in any form of payment due, shouldn’t these companies penalize contractor or property managers who have delayed the project? Above all why should bond holders be forced to pay for profit during construction for none of their faults?
The only door of the hope left to be knocked is that of Mr. Mohammad Qasim Al Ali, Chief Executive Officer, National Bonds Corporation. What is heard about him is that he gives patient ear to genuine issues and is very generous man. Above all National Bonds Corporation is organization of high repute and integrity and wouldn’t wash off its hands from the situation that would leave it’s bondholders in lurch.
Insha'Allah something fruitful would happen.
Two very important points come to fore:
National Bonds Corporation is still the owner of the property, Deyaar is just a manager
National Bonds Corporation is not a commercial property developer, profit earning is not it’s primary objective but it is an institution to help people earn decent return on their hard earned money
Given National Bond Corporation’s position in relation to the project and as one of government's frontline organization it can prevail upon financial institutions and the property manager. All is what the bond holders are asking for a reasonable pricing looking at the prevailing gloomy situation. The financing banks or companies to the project would readily charge for any delay in any form of payment due, shouldn’t these companies penalize contractor or property managers who have delayed the project? Above all why should bond holders be forced to pay for profit during construction for none of their faults?
The only door of the hope left to be knocked is that of Mr. Mohammad Qasim Al Ali, Chief Executive Officer, National Bonds Corporation. What is heard about him is that he gives patient ear to genuine issues and is very generous man. Above all National Bonds Corporation is organization of high repute and integrity and wouldn’t wash off its hands from the situation that would leave it’s bondholders in lurch.
Insha'Allah something fruitful would happen.
Wednesday, January 27, 2010
‘SKYWATCH’ The First Official Newsletter for Skycourts update
‘SKYWATCH’ The Official Newsletter for Skycourts update has been published.
Highlight (an excerpt from the newsletter)
“The Skycourts project is undergoing rapid progress. The handover will be based on completion of individual towers and we expect the handover for all six towers to be completed by the third quarter of 2010”
GKB
Highlight (an excerpt from the newsletter)
“The Skycourts project is undergoing rapid progress. The handover will be based on completion of individual towers and we expect the handover for all six towers to be completed by the third quarter of 2010”
GKB
Tuesday, January 12, 2010
Skycourts Update 9th January 2010
The new thing to watch in 9th January update pictures is that the outside parking paneling has commenced from Tower A, other the pack of tiles placed behind the building seem like interlock bricks, that means the landscaping would start soon.
All towers have reached canopy level. It seems 90% of glass paneling for Tower A has finished, followed by Tower D and then others.
Government seems to be seriously developing the community since more street and traffic lights have come up. Also the vicinity is buzzing with construction activity. The building behind Skycourts is almost finished with other buildings near by under way.
All towers have reached canopy level. It seems 90% of glass paneling for Tower A has finished, followed by Tower D and then others.
Government seems to be seriously developing the community since more street and traffic lights have come up. Also the vicinity is buzzing with construction activity. The building behind Skycourts is almost finished with other buildings near by under way.
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