Contract
RHolding gave away contracts with anticipated date of completion mid 2009, and says if the project is delayed the buyer can suspend their payment while informing the buyers the duration of the delay. Rholding said the project is single phased during Cityscope show, all the project developers will hand in 2010. Who will compensate the rent expected during that period, it doesn't say weather RHolding will pay the installment in the contract. Did any body know legal position in this case.
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No compensation for delays in Construction
In UAE, no developer or Master Developer will compensate for delays in construction. The best case that is offered in case of lengthy delays is that they pay you back all payments you made with zero premium, as the fact is that all projects without any exception get constructed well beyound the anticipated completion date. The minimum being one year, this delay is beyound the control of the developer in most of the times. If developers are forced by any means to pay compensation, this will ruin them. There is no law that forces them to make any compensation.
In 2005, I bought a flat
In 2005, I bought a flat from Best Homes of Internationla city (phase 3) dubai, an anticipated date of completion was end of 2007. but unfortunately, Best Homes said that master developer (Nakheel) has delayed the project untill end 2010. they offer me to pay back full and with interest. the value square feet was 499 AEDand now is 675 - 700 EAD. therefore i declined their offer.
any advices will be appreciated.
Contract
Hi Oshurie,
When did you receive your contrcat and for which project?
I have purhcahsed the apartment in tower B 08 and Villa Erica in Uptown project. I have only received the contract from Sweet Homes to date. Was I supposed to have received the contrct from R Holdings as well? Can some member update on this.
Lee
CONTRACT
Hi Yusuf,
My developer is RHolding(Lillie & Lavender towers), I am not sure if you will get a contract from them, I heard they are only developing those two tower blocks at emirate city and the rest by different developers.
Thanks Oshurie for your
Thanks Oshurie for your clarification!
Allah knows best but surely we shall have our investment in tact and in handsome profit on completion.
Lee
In fact you can do nothing
In the case of delay ,in fact you can do nothing ,because if you consider your main contract , in case of delay if & only if the delay is because of developer"s fault , you can only suspend paying your instalments , but if the delay is because of infrastructural sectors & their factors such as water or electricity suppliers (which are usually governmental organizations & naturally powerful) you cann"t suspend your financial undertakings.
And sugestion of giving the money of purchasers back, after completion date (if the project is not ready), is completely in favore of the seller because of inflation & rising the prices of the apartments.
So its better to wait , any way a long period delay will ruin the developer"s reputation too.
Rholdings signs only for Lilie & Lavender
Dear Yusuf,Oshurie is right. The main contracts should be signed only by the developers of the projects & Rholding is the developer of Lilies & Lavender towers only.
But you have to know that I have paid for reservation of my apartment in Lavender tower on 23rd July 2007 & I have signed my reservation form on 24th July, but know after 3 month I have not got my main contract yet, because my agent says that they have given the contract back ( after my signing) to Rholdings in Dubai about one month ago and Rholdings say that they have sent it for their branch ( & maybe their main office) in Ajman & it hasnt got signed till now.
Now its better we pay attention to two points:
1-Both agents & developers do their duties (like introducing the projects & attracting the buyers and even providing the reservation forms ) very well inorder to engage the purchaser , but after the booking price or down payment was paid & agent took its commision fee they move slowly and forget most of their undertakings.I have paid Down payments (about AED50000) in 24/07/2007 , & I have paid my monthly instalments for Oct., Nov. & Dec.2007 & even the instalment of Jan.2008 inadvance , but I have no contract till now.
2-By having such delays in the phase of bureaucratic affairs , you can suppose & calculate how much delay they will have in constructional phase.
Regards
Thanks Hassan, for that
Thanks Hassan, for that comprehensive clarification.
I can appreciate your frustration for not receiving your contract to date. I pray to Allah that the matter be resolve at earliest and also for all the investors to reap the benefit/Profit on our investment soon, Insha Allah.
Lee
Be in Safe Hand
You are always in safe hands if you are dealing directly with the developer/owner. Based on the above experiences, think of persons who are dealing with the agents.
As far as the delay is concern, a recent study shows that 50% of the construction projects in UAE encounter delays and are not completed on time. And the contractor/developer always gets justification for it. So no compensation is being paid to the end users for any delays in handing over the project/apartments.
contracts not received of eye tower
i have not received finall contract of eye tomer what should i do now
eye tower contract
I have received my eye tower contract however, i am reluctant to sign it in it current form. it is biased to the seller with little protection for the purchaser. Does anyone have any experience in having contract renegotiated changed.
Also, the size of the unit is approx 15% smaller than I was originally sold. Is this a breach of contract can i get my money back ?
Any answers greatly appreciated
Area-Eye Tower
Please note, that the area what you have purchased is the gross area and carpet area which you are calculating from drawing is always 15-20% less than gross area.
Gross area means thickness of wall / co-orridoor / roof / reception / lift area and all other common utility area equally distributed to each sellable area respectively.
Regarding the contract I do believe that this the right time to go and discusse with R-holding , raise ur voice against delay compansation and all other points , ask them to show all specification and type of material they r going to use, as most of us has just believe on them.
ask them if you have to sign on the documemnts which clearly state that you have read all specification and know about the finish product ask them to provide, Its buyer market now.
Eye Tower - unit size
Dwarish,
Thank you for your reply, there is a difference of 15% i.e; the reservation document had a higher square footage shown on it and the contract has a square footage of 15% less, This has also been reflected in the price. the contract price is 15% less than reservation document. The points you have made will also apply to the size of the unit on the contract. The point I' am making, that either the original reservation was misleading or rholding got it very wrong. in either case it is a significant difference and contractually making the reservation void. I am not familiar with UAE law but that's my logic. I would be interested to know if anyone has a view on what local laws say on this matter.
With regards to renegotiating contracts , i would be interested to know why you feel it is not a good point to rework this with rholding.
Contracts should be fair and in the interest of all parties. How can this be the case if heavy penalties are set on the buyers and the seller has none on his side. What stops them walking away and leaving us saddled with a project that may not be complete in time.
Also, with recent events in dubai, you are seeing heavy rises in service charges. Without a cap in place to restrict these charges how are we the buyers protected.
Dear Tictak
When I was speaking with one of the represantative of R-Holding, I lernt that Eye Tower and Lavender Tower has some issues with the area of the apartments, initially they sold all equal but the design of building and shape of building is in such a way where every floor have some variasion on gross area, Its good that R-holding has mantioned in the contract and with prorata basis charging less.
15% is comapartively higher variosion but the avalable area is enough for you thn just follow the R-Holding contract otherwise you can just figth for the alternative.
Be aware that ask to include the penalty clouse in case they delay ... no progress yet seen for EYE tower, why R-Holding can't control their own projects.
Dwarish, many thanks for
Dwarish,
many thanks for your reply, I am still reviewing my position and will start dialogue soon, I will post back any useful information.
TT
real estate investment est
hi all
can someone advise if they know of this company
i have purchased lake tower c4 thru them and they claim to be the sheiks sons office
real estate investment est
the contracts are with them also
mo
real estate investment est
hi all
can someone advise if they know of this company
i have purchased lake tower c4 thru them and they claim to be the sheiks sons office
real estate investment est
the contracts are with them also
mo
delay compansation
Dear all,
In my contract its mentioned that if the project is delayed I will get a compansation @ (0.5%) of tatal purchased price after six months of my possession date provided if the daley is not due to the utilities delay such as electricity from master developer in that case I will not get any compansation at all.
Regards,
zafir
delay compensation
Purchaser loses 25% of purchase price for not meeting his obligation
No obligation on the part of seller to write and let purchaser know if they are going to sell the unit on if purchaser is in default
No compensation to purchaser for any delays
Single Phased
This may be a silly question, but I started so i'll finish. W
hat does single phased mean ?. Does this mean that the master plan will be completed by a given date. All tower infrastructure ready by 2010.
Thanks