EC Developers Escrow Accounts Updates - Discussion Board
Friends,
This Topic i have open so everyone can discuss about Escrow Account updates and if you need to discuss about developer escrow account progress. This will help organise discussion about relevant subject and availability of information at central topic for all investors and newcomers and joiners.
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Further Payments in Escrow
Friends,
Please note, as per ARRA, no further payment to be made to developer's account until Developer open's escrow account. All further payments needs to be made in escrow accounts. As part of the process of registering escrow account with ARRA, developer HAS TO TRANSFER ALL FUNDS RECEIVE TILL DATE from investors into the escrow account. It means all your payment made to the developer till date, they have to transfer to security account ( escrow account) and these exisiting funds will be secure in escrow accounts and will have limited excess to the developer. In no way developer can run away after registring with Escrow account. Even if he runs away, you funds will be secured in Escrow account and can be re-imburse by ARRA on case basis.
Please note, developer cannot force you to pay without escrow account and if you are force, you can collect a letter from ARRA, which clearly mention in it and instruct all developer not to ask investor for further payment and all payment to be halted till escrow account is open and the developer is register with ARRA. No developer can cancel the investor's contract or impose penalty if payment is not done by investor if developer have not open escrow account. If developer does so, ARRA have authority to re-instate investor's contract with the developer.
Letter from ARRA
Friends,
Who ever have visited ARRA, did you collect a letter from ARRA, which mention in it that no developer can collect further payment until escrow accounts are open and payments to be made only IN ESCROW ACCOUNTS. if you developer force you be pay without escrow, you can provide this letter to him. HE CANNOT ASK YOU FOR FURTHER PAYMENT WITHOUT ESCROW.
Its better if you all collect that letter for your safety and record
Further payment to ESCROW account
Very useful information deepineyez! Well done!
I am off to ARRA tomorrow with all my documents.
Will update you on the outcome.
Bravo
R Holding & ARRA
R Holding has suspanded payment till March 2009 from last December, Now its very much prove that the R-Holding is owned directly or indirectly by the Ajman govt. as they stop the receiving the payment first and now they setup ARRA and asking to the developer to come under ARRA.
If R holding realy want to prove a good leader, please perform build the towers build the infrastructure it will automatically build the confidence level of investor.
Today if master developer can't build any residential floor for Levender, Lilies & Eye tower ( Not yet started), where they have promised to handover in mid of 2009, not only that even no work progress as required to build the project in next two years, no work in night hours.
So since they have power they are trying to impress the investors using their power, I am not against any good movement but if they have so honest towards investor-
Why they not completed their promissed project?
Why no work on infrastructure since June 2006?
Why not moving the sand from basic infrastructure land?
Why Energy central has not setup their site office, where are they completion of this kind of District Cooling Plant will take minimum 2 years.
Why electrical substation building construction not yet started as it will take minimum 2 years
When we will see the sewage line being laid on the land of Emirates city
Is ARRA has proven engineering staff who can control and verify the progress
Is ARRA has proven accounting staff who can co-ordinate with engineering department before release the payment
Is ARRA has proven internal auditing system?
Is ARRA has appointed any external auditing agency?
Will ARRA hold the land money which to be paid to Master developer against the basic infrastructure
AND
Is ARRA has the right to pay back the money and trust in case investor loose in the land of Ajman.
There are several quiries will come once we see in depth, and R holding aware about it, but to divert the focus of an investor, to me it looks all propogenda, investore who has litle knowladge about the need of a 150,000 resident city they will ask this type of quiries before investment.
Smiling and helping front desk staff can not support us longer, if the base of ARRA is not strong.
Lots of time has been lost since June 2006, we are at begining of 2009, hope 2009 will not pass just like 2007 & 2008.
If some one ask me I am having very less hope with ARRA, it will prove as just mind diversion game and nothing more, as we always said " ACT NOW" and prove that you can build what you promissed, If they want our constructive support we all are ready to support them but for god sack don't play with our emotions and hard earn money.
I am very optimistic but constructive, if after loosing three years our developer still believe on the paper work and not real construction how they have hope that the investor will trust on their any move.
Regards
Business for Ajman bank
900 towers confirmed by the news agency, mean 900 ESCROW account and trillions dirham transcation, what else need to run a bank.
We have to wait when ARRA will ask all the contracts to be stampped from them with stampping fee of _% of the contract value.
Please undestand after set up of ARRA, GIGA group proudly announced the two years of delay for what they have already completed 60% construction.
within next month we will see almost every developer will announce their delay as till then all developer will be helping to run ARRA directly / indirectly and Ajman bank.
Poor Investor .... " Dream become ______"
Business for Ajman Bank
I understand your point dwarish. But I'd rather pay a few dirhams more to government authorities and be protected of my hard-earned money than be in the mercy of the developer to do whatever he wishes to do with my money, including running away with it and investing it somewhere else.
Equally, I do not mind seeing Banks having so and so many accounts - which is why banks are there anyway- than not having many accounts by giving the right of banking MY money to a developer alone: both as A Banker and Developer. No way!
Fully agree with you Dwarish
No one will trust them anymore. I remember that Emirates City project was launched in year 2006. Now we are coming to 2010.. Oh my God!! What a hell, I have not ever seen such delay in any part of the world. And after that delay comes what is called ARRA to push the investors to pay the money again. I called the ARRA and they told me they will not ask the developer why you have delayed up to this time. They will treat the case as if Emirates City is Launched in 2009.
Sorry, this is not acceptable at all. And istead of wasting your time convicing investors to pay money to developers, go and push the authorities to build the infrastructure for the projects. No water, no electricity, and nothing at all. What is the meaning of having a castle in the desert without infrastructure.
What is happening in Ajman is a rubbish thing and not acceptable and will make the investors depressed because simply they are cheated intentionally or non-intentionally.
I dont want the flat the i bought, and i will not pay any more dirham to them and let the developers go to the hell...
Escrow account
I know the feeling nader! But not doing anything, including refusing to pay due instalments to ESCROW account, is not the solution to your problem. It will make it only worse! What one needs to do is this.
Get ARRA written advice not to pay any more directly to the developer and pay all due instalments to ESCROW account - if it IS there- or pay nothing until ESCROW is established by the developer. ARRA letter is your protection, in future. In this with: You are both safe, legally and your money is practically in a safe place. Recoverable.
On the provision of public utilities, both developers and investors will have to put pressure on the Authorities in Ajman to provide such services as it is required not only by law but also by a de factor human right needs, recognised all over the world. It will only be a shame and failure to fulfil this right by Ajman's Authorities to the eyes of the whole World. They cannot afford it, nor other Authorities within UAE can.
This is how I would approach the current situation.
Regards
the Situation
Simply what happened in Ajman is exactly what a stupid scientist do in his Laboratory on somebody to achieve unrealistic thing that he is convinced in
Scientist are the developers in Ajman
Laboratory is Ajman Emirate
Somebody is the investor in Ajman
Objective of the test: Making Ajman Mini Dubai ( Mission Impossible)
The developers believed that they are smart enough and that what they can dream will come true. So they were doing their tests in the Land of Ajman. And after 3 years of testing in the labratory they discovered that they are failures and they have to come out of their dreams.
And now comes the ARRA which is the Lawyer for that scientist and its role is to push the investors to support the scientist in order to continue his tests on Ajman. Remember without the money of the investors the trials that the scientist is performing on investors will stop.
I guess all investors are fully aware of what's happening
ESCROW account
I think the issue of ESCROW account imposed by Ajman Authorities is the best solution, under the circumstances, to investors' uncertainty. Genuine developer would not and should not find it as a hindrance. Rather it's a confidence building measures for both the developer and investor as well as the guarantors (Ajman Authorities) of the whole enterprise.
It's a Win-Win situation and not win-loose situation! As simple as that!
Not convinced
Sorry man, em not convinced with what you are saying. I dont need such an investment in where you get you flat ready after 10 years. Let them build a power station before speaking about investments..
How ESCROW account would impact the original payment plan
For those developers like Sweet Home who had the following payment plan in their Reservation Contract (also much polularized in leading newspapers)
Payment upto 50 % of the value until the projects completion,
25% upon delivery,
and the remaining 25% after handover.
How the ESCROW account would affect this plan, as 50 % payment is supposed to be after completion.
Further how the delay in the completion would defer the payment plan?
Can ADMIN check with ARRA, the developers and the Ajman authorities
Escrow Account / Original Pmt Plan
Specifically speaking about Sweethomes - eventhough they advertised it very widely - that payment plan was a scam. Not many, if any contracts were issued as advertised. In my case at Uptown, I paid 35% so far, with barely any construction. So from that standpoint, I welcome whatever payment plan ARRA is going to introduced, especially if it is construction linked.
On the other hand, I am sure if someone has a payment plan, that say offers 50% on/after delivery...that is much better than whatever ARRA will introduce. Ideally, ARRA's role should be to introduce minimum standards .... so if your contract exceeds that standard, you should be allowed to follow that....but I doubt it. Ideally, ARRA should also have a process which allows buyers who are happy with their existing contracts to go and obtain a waiver for their developer. I would be surprised if there are 100 people...who are satisfied with everything as is.
ESCROW ACCOUNT ARRA OR RERA NO HELP
In Dubai RERA says you buy property with RERA approved agent your investment will be safe I did that I bought property through RERA approved agent Aryene Properties LLC they have office in Bur Dubai when I was buying flat with them they said owner of the sapphire lake view B 13 is from UK Mr Shouket from Aryene property Sale's executive its not true developer is not from UK Last month when I visited the site as I am not from UAE there was no building permit No on Sapphire lake view signboard and construction was not started yet when I contacted Aryene properties they told me that they are not doing any more business with Sapphire properties when I called RERA about it did not get any response in this regard I do not believe ARRA is any help when the construction cost is 400 Square feet from my information how can a developer will construct his building and give apartment for 390 ??? What we shall do is ask for our money back specially from those developers who have not yet started their construction.
Dear Zafir
I perfectly agree with you. and what you are saying i have been saying frm 1 months back, but unfortunately some members in the forum started acusing me of being a real estate agent. I am in fact an ivestor who bought three flats in EC project but construction did not start and it will not start. My developer sold out his projects at less than 400 dhs/per sqft which simply mean that they are a charity organization selling at cost prices.
I am sure that everything that is sold for less than 400 dhs/sqft will not be constructed and there was an article in the gulf news concerning this but people forgot or dont believe.
The prices of steel and cement will pick up again and at that time the developers will start eating their fingers
properties less than 300
but my friends properties like paradise lakes were sold for much less than 300dhs initially and their towers r over 10 floors that doesn't mean things bought below 400 wont b built .rashidya,al khor etc are also examples in ajman which r built and occupied as well.so the problem is not the rate but it is some builders who r delaying but will eventually work out for all of u.As such if projects were sold at less prices the developer was aware and everyone was aware of prices of constructiont last year at least now the construction cost is less so u can expect the developer to start their work now.the only thing we were not scared while buying the properties at cheap rate even when we knew abt the construction cost was there was no global crisis.
Sold apartment for less then 300 Dhirams
Dear ZP296,
You have a point where properties were sold for less then 300 Dhiram what they did was keep some top floor flat in order to sell later and gain profit so far now situation is changed some of the project have sold around 25% of there property and have paid for plot payments or have booked more plots in other projects now they do not have money to construct there project mostly investors have stopped installments if they do construction now they will not be able to sell even at 400 sqfeet since property is down in Dubai too where 1 bed apartment in international city have come down to around 500,000 dhiram from 800,000 so who will come to buy in ajman? I am going to request my developer to refund my money what do you think?
Regards,
Zafir
developer asking for proof
i contracted my developer after reading this post and told them that I would not pay in their account until and unless they provide me with an escrow account. They just emailed back and are asking for proof where ARRA has said that the investor should not pay the developer until an escrow account is provided. Since i do not reside in UAE, can anyone guide me or help me on how I can get this official information so that I show it to the developer? Thanks a lot!
Dear alikhan,
Dear alikhan,
You can call on this number 0097167444144 and speak to Latifa al naomi.
ARRA
Dear alikhan,
No one answering this number 0097167444144 kindly see if this is correct number thank you
Any email address of ARRA?
Any email address of ARRA?
info@arra.ae
email: info@arra.ae
Website(still under construction i guess): http://www.arra.ae
Just want to ask anyone who has talked to their developer and the developer has agreed to stop payment until the escrow account is provided?
I am still arguing with my developer and do not know where this whole thing will go.
Regards,
Ali Khan
e-mail adress
the e-mail adress of miss latifa is latifa.n@arra.ae
Heshmi
Salaam Mr Heshmi,
how are you doing thank you for your help when I came to dubai you took me to see my project B 13 sapphire lake view recently I heard that some thing is wronge with this group sapphire properties I don't know what to do need your advice.
regards,
Zafir
sapphire lake view
Let’s share sapphire lake view's news
The project status is stopped till the pilling stage and no more progress.
regards
Sapphire lake view
I heard that they are running away sapphire properties group I also have one bad apartment in this project they had one project name Crown Avanue in there website I heard that this project is never build they are showing its sold out I called them to clearify this issue they fail to answer if you are in duabi kindly take immediate action or please update me thank you
what time did you call??
what time did you call??
Figaro
I had called them yesterday around 12 afternoon Dubai time some one name usman ansewer the phone when I asked him about Mr. Jawad first he said let me chick and ask my name after one minute he came and told me that Mr. Jawad is sick he is not come to the office then I ask him about Crown Avenue he said he do not know anything about it he said only sales people can tell about Crown Avanue I said ok let me talk to some one from sales he said ok I will put you to Miss Ameera later told me that she is busy with some clints you can call later I called later she was still busy then Ask me to give me my number he will ask her to call me so far I have not received any call from sapphire properties one more other member also owner of two apartment in Sapphire lake view B 13 mr feb I received his e-mail he told me that sapphire properties are running away he suppost to get his SPA in January until today did not get it know he is saying that they do not even reply to his e-mails I am trying to call ARRA from last 3 days no one is picking up the phone some one in UAE has to do something about it or please update me on B 13 I am worried :(
Oh, That does not sound
Oh, That does not sound good! :(
Its not looking good, I will be in the Bur Dubai area tomorrow shall I take a look?
Figaro
yes you can visit them and ask them about crown avanue also why contractor is still not appointed? since they said it will be appointed in first week of January 2009 do you own an apartment is B13 ?
SAPPHIRE PROPERTIES
Hi,
No i have not got a property with Sapphire Properties, I'm in another development there, I go every week to check up on mine(which I'm happy with), I drive past your development and was just interested what was going on, wondered if people where aware.
I went today to meet somebody in Bur Dubai, I checked up on SAPPHIRE PROPERTIES and they were in the office, I did not ask them anything.
You must keep on this, maybe best if you went to there office to check up on your investment.
All the best and good luck, I hope it turns out to be ok for all the people involved.
I think you should put a thread on all the forums requesting other people that have bought with them.
Sapphire Properties
Hello,
I was in Dubai last month I did visit them at that time everything looked ok they said construction will start with 7 days so far not started yet I come a cross this link which got a point about Crown Avanue in Dubai and also in there website showing this project as sold out where as this building is never was approved when I called them about it they failed to clearify this matter that is the reason I am worried any ways thank you very much for your help yes I will try to put this link in other website's as well
Regards,
zafir
e-mail adress
ARRA e-mail adress : latifa.n@arra.ae ( Latifa Nuaimi )
Escrow Account
Dear Alikhan:
To your developer wanting proof of ARRA or an escrow account - you may want to refer them to the following;
http://www.thenational.ae/article/20090215/BUSINESS/754778969&SearchID=7...
Unfortunately, we(investors) don't seem to be able to get anything from ARRA in writing.
Excerpts as follows;
Omar al Barguthi, the director general of ARRA, has given developers until March 5 to begin the registration process for all projects in the emirate, with a May 1 deadline for all paperwork to be completed.
“No further payments should be made outside the escrow and developers have no right to ask investors to do so,” Mr al Barguthi said, adding that buyers should no longer write cheques direct to developers.
owners passport copy
In the same situation ;perhaps some of you in ajman may think this is a gd idea.
if you can get hold of a picture and passport copy of the owner of your projects
then if they take off you can catch them through interpol.
zafir
ARRA is having off onfriday and saturday.I will call them on sunday on your behalf and in form them about saphire properties .your apartment name is saphire lake and your tower is B13 right..
ZP296
Mr. ZP296 yes its B13 Sapphire lake view tower Emirates city Ajman kindly let me know once you call ARRA what is their reply in Advance Thank you for your help
Regards,
Zafir
What about PDC for paradise lake apartment
I gave sweet homes PDC for all payments for a Paradise lake apartment. Apartment was supposed to hand over on Dec/2008. After Dec/2008 PDC cheque also taken by sweet homes. Work for the construction of B4 building nearly 20% completeted. January/2009 payment also taken by sweet home because I have PDC (post dated cheque) to them. How Escrow account will help me. Could anybody suggest me what should I do. My understanding was 50% payment after completion as they advertisd in news paper. Sweet homes make the tricks in contract paper by not mentioning this. From the begining sweet homes have had bad intention to play with new investors. I am one of the victim. Some of sweet home paradise lake investors didn't give PDC which supposed to give after completion. They are smart. We paid 56% without getting anything. My next PDC date is 1 st March/2009. Please suggest how escrow help me for the stopping ofMarch payment.