Chapal announced it's Escrow account
Dear Freinds,
Consequence of paying last Installment, Chapal World LLD. announced about registration for Escrow Account according to ARRA regulation and that seems developers feel their obligation thanks to memebers of this fourm which try to keep right of investing.
I hope we here more good news as time is passed look projects are growing as fast as installment time approached.
Regards
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CHAPAL ESCROW ACCOUNT OPENED AS OF JULY 15,2009
I HAVE RECIEVED CONFIRMATION THAT CHAPAL HAS REGISTERED WITH ARRA AND THEY ALREADY HAVE THE ESCROW ACCOUNT IN PLACE. pLEASE VERIFY BY CALLING THEM THANK YOU . bUT DONT MAKE ANY PAYMENTS TILL THEY AT THE SAME PACE WITH THE CONSTRUCTION
Chapal will have to write to each investor
Chapal will have to write to each and every individual investor informing him or her about the establishment of ESCROW account, giving full details including its association with the relevant project and its progress. The given information will then have to be verified by ARRA, and only then can an investor be ready to pay subsequent instalment in accordance with the level of development on the ground.
wrote to them in may/june
wrote to them in may/june telling them not paying until they registered with ARRA and set up escrow account.
they said thats fine and will let me know when set up.
however if its now set up, when do we pay.
either we continue paying into escrow at normal pace, and they can only withdraw funds from escrow when they reach certain stages of construction etc,
or in alternative we only have to deposit into escrow when they are about to reach certain construction landmarks
any thoughts anyone ?
CHAPAL THE GLORY
ESCROW DETAILS FOR GLORY
Account Name: The Glory Project- Chapal World L.L.C.
Bank Name: Ajman Bank
Account Number: 01-1002108-016
Branch: Ajman
Swift Code: AJMNAEAJ
They emailed me today with
They emailed me today with details of the escrow account for the Harmony.
but yes I have the same questions as Musafir. Should the payments now be construction linked?
And can we now query the bank to see how much money is in the account to make sure it is not being spent on other things?
the whole basis of escrow is
the whole basis of escrow is the money is controlled by govt. and only released to developer at key stages of construction.
i am thinking of continuing to make the payments, as the security aspect is there now, and no default on my part.
on basis of escrow chapal would not have access to funds till they reach key stages construction then at such times part payments released to them etc until completed.
if there is default on part of chapel in completing on time, then as long as i kept my side of bargain upto date (ie paid on time) i have stronger position demainding compensation in courts and negotiation for them to give me compensation for their delays etc.
there is a legal maxim one who comes to equity must come with clean hands
if you if one is bad, u sort him out, if both bad, how can one say other is bad
if delveoper delay u sort him out and get compensation,
if developer delay construction and investor delay payments, then both bad as each other, and courts can say wont give any comp etc.
Musafir, Clarify?
Musafir,
In your post above you mentioned: “the whole basis of escrow is the money is controlled by govt. and only released to developer at key stages of construction”, Well you explain:
1- How the money will be controlled by government?, Is the escrow
account in the name of government?
2- Who gave the permission to release the payment?, and How and
Who follow up the “key stages of construction”?
3- A lot of questions and procedure more complicated, So since you
seam to be have information, tell us Whose your source of
information?
This is common knowledge of
This is common knowledge of the basis of escrow accounts. If u have info to contrary please provide. As to mechanics of escrow details that I do not know, and so your questins do raise some interesting points - Iif anyone can find out and post here for all to know would be great
hamad, you should know better
hamad, you should know better than asking musafir, carlito and the like. They are merly on this site to lie to investors and paint a rosy picture about ajman. Either they are affiliated with developers or brokers who make money from developers...etc. regardless, the so called escrow account did not change and will not change anything on the ground.
chapal, esskay, r-holding, and others, until they make some real progress in building, not a derham going that way. They have betrayed our trust more than once already, do they really believe if they just say they have escrow, the money will come back pouring in?
I say not anymore. Poll this site, see how many investors already know the truth about ajman. Pretty much everyone.
ajman need many things, until these things happen, it would be really dumb to send a derham that way.
1- Real estate laws. Mainly to govern developers and ensure investors are not robbed like is happening now.
a- proper contracts
b- law enforcement
c- courts accessibility
2- infrastructure. electricity, sewerage...etc
3- Some developers have to go to jail. to recover the image of Ajman, ajman government has to put some developers in jail. otherwise, the emirate is not admitting they have a problem, no one is punished, and the emirate is not trusted to go beyond the image of a lawless land where theives operate.
Ajmanflat, Now Revealed what they are!!
Ajmanflat,
When I had posted asking Musafir clarification about the info. he had posted as a fact!!, I was expecting either he will not reply at all or reply with no answer, and actually I was right, since he replied with no answer.
He occurred in the trap and for other investors participating in this forum now they know exactly the truth about developers’s affiliates or brokers like Musafir and Carlito.
I've called ARRA and spoke
I've called ARRA and spoke to someone who confirmed that Chapal have registered and have an escrow account for the Harmony.
I then asked what the rules of the account were. She said "you pay the money into the account, and we control when the money gets released and only allow it to be used for building".
So far so good. So I asked if it was controlled according to the percentage of construction completed. She said that law is coming but is not in place yet. So I asked how it was determined now when money was released and all she would say is that it would only be allowed for building.
So then I asked if investors could find out how much money had been spent, and how much was left. Answer: "No".
The Irony of ARRA
One of the biggest Ironies of ARRA is that they will neither give concrete written answer or their suggestions to your question\s -which one would expect from a so-called Authority- nor would they EVEN put what they say ON THEIR TOTALLY DEAD WEBSITE! :( :jawdrop: :O :?
The poor investor in Ajman is, thus, left in the cold; doesn't know whom to trust any more!!!!! :? :? :? :? :? :? :?
Now, to state the simple obvious: If they cannot put their OWN house in order how can they possibly put someone's else house in order?!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
The answer: They cannot!
Chapal the Harmony- Escrow Account
Escrow account must have been opened after submission of audit report and construction plan related to the respective project by developer to ARRA. According to the original plan and contract the completion date is Dec.2010. I wonder if Chapal World L.L.C has sumitted the plan with the same completion plan or revised plan with date beyond Dec.2010. Moreover we need support from all developers to take up visa issue with ARRA authorities as non of the value of all properties is Dhs. one million which is the prerequisit to qualify for visa. Without resolving this issue the property value in Ajman will never appreciate.
rightly said
mr siddique is right abt the visa issue.also i want everyone to know there are diff kinds of registrations of developers such as temporary or final registration.each one should find out abt their respective developer.
visa
I really agree amongst all the problems the visa issue is huge, we all need the visa to live there or if you want sell on in the future, the million dirhams thing is no use to most people and no one in emirates city at all.