I will talk with them in person in a few days and i will go personally to ARRA.
I think there is no point in the building being finished by Nov 2011 as the utilities issue won't be resolved. Also there is no more talk of rental guarantee, of course in 2011 nobody can move into a place without water and power.
Friends, this is new payment plan for GCD2 B type apartment. As per this plan, we have to pay the installments continuously till the full payment. before, the big amount of 65,000 had to be paid at the time of possession, which they have changed and now it is splitted to 8111 per quarter, it means even if the project delays mor, they will get their money from us.
in my opinion, we should tell them to follow the old payment plan and the amount of 65,000 should be paid at the time of possession only, even if it delays we will pay it at the time of possession only. we have singned the contract on these terms so that new payment plan is not aceptable to us.
Also, they have not mentioned anything for rental guarantee in ths new payment plan. so we should ask them for it. because most of us prefered this project due to this attraction.
ur comments and suggestions are required to talk with developer more effectively in this matter.
Yes, these are my plans also. The cant change the terms of the agreement at will (to my knowledge) and therefore I will stick to the original payment schedule and give them the big payment at handover. I will be calling Giga to see if they can point out the clause in our contract that lets them cancell the rental agreement at their will and also to ARRA to see what their opinion is. Maybe we are stuck, maybe we aren't... the most important thing is not to panic yet, this is all a part of the game!
Yes, these are my plans also. The cant change the terms of the agreement at will (to my knowledge) and therefore I will stick to the original payment schedule and give them the big payment at handover. I will be calling Giga to see if they can point out the clause in our contract that lets them cancel the rental agreement at their will and also to ARRA to see what their opinion is. Maybe we are stuck, maybe we aren't... the most important thing is not to panic yet, this is all a part of the game!
It is obsurd for them to do what they like, changing the contract details and what agreed on initialy about the 8% rental which have no mension in the new payment schedule, how could they get away with this, i think we should all seek legal advice and lodge legal action against the developer to demand compensation or our money back. To me the new payment plan does not mean anything, the handover date on the Nov 2011 i can assure you will not be met.
If any of you going a head with the payment, you should demand evidence on the building progress because the building up to now still at the foundation level.
I sent them an E.mail & asked about rental guarantee,but received still no answer.They dont have right to change the completion date or any other terms of agreement at their will only,or cancel some parts of it.Rental guarantee was the most attractive term of this projects(GCD2)& they ,instead of giving some advantages to purchasers for their delay, are trying to get more too.its really shameful.
There is no point to correspond with star Giga by e-mail, you'll never get answers. I pointed out to them, that in order to restore confidence they need to improve on the customer relations. They have left us in the dark concerning the construction halt even though it was pointed out to them several times. Unfortunately the people in the offices in Deira are totally disconnected with what's going on on site.
I will also go to ARRA even though I was advised, that they are not giving anything out in writing.
I will keep you posted on my findings, when in Dubai.
If we all will put pressure on them to stick with old contract payment plan, it will definately be effective. the contract terms and conditions are agreed and signed by both parties and it is a legal document which can not be changed by one party without approval of second party, otherwise it can be challenged in court.
I think, we should insist on old terms and conditons for payment plan and rental guarantee. they should not eleminate any point from the contract. therefore, i request all friends who booked the apartments in GCD-2, all should insist on same point and must not accept any changes in the contract terms and conditons regarding payment plan and rental guarantee.
they are big cheaters
they make every change make good profit for themselves
and they put us in one way
even they dont give us interest for delay , plus that with remove 8% rental guarantee we are buying units in more price than ago
where is court,government,sherif in dubai
it seems chief and police are partners there
i think if we pay more installments we'll be bigger losers
and what is guarantee that they handover in 2011 , maybe they change everything again and again
and 2011 become 2013 and later that
i want look positive to that but when i open eyes and see reality , there is something different
we paid %25-%30 of price and tower should be built at least 7 floors
but it's just a fondation , few irons installed under ground!
so where is our money , it's in their bank account
we could hold our money ourselves in our own account ....
now they want more money since may , for what!
we paid already and no progress compare with our losing money
My personal feeling that we should not to pay any single dirham beyond original schedule, and as they are playing with our emotion by spliting of big payment into equal installment, but why we pay now we can keep that money with ourselves and pay to them at completion.
I don't have direct investment with GDC projects. Developer is in the fault, why they lounched the project with R Holding when it was known to them that they wont get the infrastructure before 2011, 2012... If they trust on R Holding let they fight with them and not bag the money from poor investore.
Its not at all Investor fault and hance no right to re-schedule payment plan which is not suitable to the investor, even investor should ask the compansation for delay and gauranteed rantel income as promissed.
I am very surprised that no body from ajman government is discussing the problems in ajman projects. As if everything is going fine and at the same time that all investors are now silent as if they dont care about the money they paid.
Okay there is financial crisis, but the problems in ajman projects and delay in starting the construction exists before the crisis and its good the crisis come to break everything and to enable investors to discover the intentions of the developers
As we see they didnt do anything about GCD2&GCD3
so why they dont allow anyone wants go out of biz and anyone of investors want stay , they give him units in GCD1
then all investors will be glad and it will reduce their problems because they'll have only one project
so they can focus just on one project and do complete it with current scenario
they can't complete GCD2 before next 4 years because they need big materials and workers and just it makes another pain for investors
i agree with passargad ,if developer launch 3-4 tower cant manage it its better to cancel development of 1-2 tower and focus more on remaining project ,psyched of these developers are beyond my imagination ,frustration part is they keep us on dark and hoping against hope that things will get better as times goes without taking any action.
I spoke with the Star Giga office this morning and they told me that they are officially trying to use the Event Force Majeure (utilities) to justify the delay in the project and to push the ultimate long-stop date to 2011, or beyond. Time to read up on these parts in your contract!
Here is the reply I received from Star Giga regarding the rental guarantee...
Dear Sir,
Thanks for your mail and noted its contents.
We hereby confirm you will enjoy the benefit of three years rental guarantee starting from February 2012 to November 2014 and the detailed schedule will be sent to you shortly.
Regards,
Customer Support Team
Star Giga Establishment Limited
What a kick in the balls! 8 years after I purchase the property, I can move in!
First, collect information about the situation and my rights. Second, register a complaint with ARRA. Third, continue with payments (hopefully with an acceptable payment plan) and eventually take possession of the unit.
I want to share the reply I got from star Giga concerning several topics, including ELECTRICITY AND WATER.
read it carefully, as the English isn't always clear:
Dear Sir,
Thanks for your mail and noted its contents.
Regarding rental guarantee you will be getting the detailed schedule along with the installments.
We are confident that we would be ready with all such facilities by then. If not, we will be providing you with the required generator and all other facilities by then. But it should be kept in the mind that the operating cost will become higher than the normal utility charges.
The delay are natural part of such kind of mega projects, due to its complexity and dependency on various factors, including governmental regulations, which are beyond our control, therefore to say that the project has been delayed for any exact reason would be misleading. However wish to emphasize one of the main reason is the delay in providing utilities and developing infrastructure in the Emirates City region, and hence, we thought it to be feasible to slow down the construction and match it with the expected availability of the utilities. It may appear as though we are making an excuse in the shadow of utilities but logically a completed unit with the absence of infrastructure facilities does not suffix for the possession as per the sale and purchase agreement.
In order to match the availability of the utilities, we have delayed the construction process which is a requirement to protect many finishing item like Doors, Tiles, etc. If there is no power to run the Air conditioners, it could cause damage to all the items fixed such as Doors, Tiles.
We acknowledge that additional resources to strengthen the contracts team and to initiate the process.
Yes, we will be in touch with you concurrently on the status of this project as well as the milestones achieved. Please note that we also contribute more than 50% of the project cost along with you, during construction period. Please note that we have equal interest in this project, like you. Hence, you need not worry and you have to strictly adhere to the revised payment schedule, which has been sent to you.
Please do not hesitate to contact us for any more queries.
Regards,
Customer Support Team
Star Giga Establishment Limited
about rental guarantee message:
It's clear message , apartments will be handover 2015 surely , so all enjoy! after 6 years since now
and they want more and more money
damn , it's all bullshits and we are all losers who did trust to uae government
if you want pay more goahead but my money is safer in my pocket than i send it out to dry desert
i think we should do a hard action against their fault and got lawyers
they did default first contract strongly and second one isnt legaly because it is accepted only from one hand
Going to the court simply means laughing at ourselves. Nothing will happen and we should accept the fact that we lost our hard savings by the ponzi scheme ( emirates city)
The rental guarantee is after all a guarantee. You may or may not invoke it on possession. If one wants to occupy the unit himself the possession will be in Feb 2012 and not 2015.
I recieved the same E.mail from Star Giga about rental guarantee,& I think its going to be acceptable now.In the current global crisis & in comparing with many other towers which has gathered big amounts without any noticeable improvment in construction,& thier considerable progress in project GCD1,& their reputation as one of the best developers in Emirates,I think we must agree with it & cooperate with them.They should send us a new legal & formal payment plan with their sign & stamp too.
Anyway , I am optimistic now.
I suggest forming a common grievance committee with one person representing us with all matters with the builder and the Ajman government. This way we will be seen as a strong group on all fronts and will help us meet our common goal.
Got now the payment plan with rental guarantee, too. i will take it to their office and have it signed by someone, because the only thing signed i have is the contract with the old payment plan. As of possession: i willl inquire about this as well. I understand it like Smitty: possession is after the rental guarantee is over. This needs clarification. Will visit them in a few days. will keep you posted. Btw: feel more upbeat now.
Why not we all , who has booked the apartments in GCD-2, launch a complaint with builder and insist on following the Old payment plan. Ofcourse with new dates which can be mutually decided. By that way, we will have to pay the big amount of 65,000 at the time of possession only. whereas in new payment plan, it is splitted in the quarterly installments.
If we all talk with builder and togather we say to make it changed, it will definately work and they will have to do something for it. We have strong reason as we accepted the old payment terms and conditions which were suite us that time. Now for new plan also, both parties should agree then only can be implemented.
"pay the big amount of 65,000 at the time of possession only"
That's what I thought too, but then when I reviewed my contract I noticed the big payment was actually the quarter BEFORE the stated handover date. Are you sure that your contract says the big payment is at/on handover?
Hello Guys,
We all are facing the same problem and all we are doing is posting our issues here and not taking any action.
I had send them an nasty email demanding my money back and in return received this email so thought i should share this with you all.
HERE IT GOES:
Dear Sir,
Thanks for your mail and noted its contents.
Please find below our answers for most of your queries.
The contract entered between us, is for the purpose of developing and handing over your unit. We have already completed land purchase and have progressed substantially on the design development related works and have also commenced the construction and we are already on the Ground floor. In order to progress further it is important for us to have your cooperation and continued support on the payments.
The only exit option available is termination of the contract and if the contract is terminated 30% of the sale value of your unit will be forfeited as per clause no 9.8 and 15.3 of sale agreement.
It states “In the event of cancellation/termination of this Agreement by request of the Buyer or by default by the Buyer of any clause in this Agreement, all payments previously made by the Buyer, subject to a maximum 30% of the Sale Price will be absolutely forfeited by the Seller” and,
“The Seller and the Buyer agree that the forfeited amount constitutes a genuine and reasonable pre-estimate of the damages that will be suffered by the Seller as a result of such default by the Buyer. The Buyer hereby acknowledges and agrees that the forfeiture of the Agreed Amount as provided for in this clause 15.3 and 9.8, fair and equitable, is not harsh or unconscionable and does not constitute a penalty. The Seller also reserves a right to recover costs and losses, if any, that the Seller may suffer in the process of termination of this Agreement in accordance with clauses 9.8, 15.2 and resale of the Unit”.
Hence, this is not an advisable option at all.
The delay are natural part of such kind of mega projects, due to its complexity and dependency on various factors, including governmental regulations, which are beyond our control, therefore to say that the project has been delayed for any exact reason would be misleading. However wish to emphasize one of the main reason is the delay in providing utilities and developing infrastructure in the Emirates City region, and hence, we thought it to be feasible to slow down the construction and match it with the expected availability of the utilities. It may appear as though we are making an excuse in the shadow of utilities but logically a completed unit with the absence of infrastructure facilities does not suffix for the possession as per the sale and purchase agreement.
In order to match the availability of the utilities, we have delayed the construction process which is a requirement to protect many finishing item like Doors, Tiles, etc. If there is no power to run the Air conditioners, it could cause damage to all the items fixed such as Doors, Tiles.
We acknowledge that additional resources to strengthen the contracts team and to initiate the process.
Please also refer to clause 17.1 with reference to clause 1.1 for – “Event of Force Majeure”
Trust the above clarifies your position in this regard.
Please do not hesitate to contact us for any more queries.
They make a good point. We all agreed to the terms of the contract and we need to adhere by it as much as they do. What their contract shows is that they looked to the future, came up with a list of possible problems and created a plan to deal with them.
If they look at clause maximmum penalty why dont look at another clause that says if they delayed more than 6 months they should
return money to us ith interest
delayed more than 6 months they should return money to us with interest - but is not true. They are saying in case of force major like water and electricity they can delay max 2 year, only after 2 years we can ask for the interest. this is the last update from their office, we have been yesterday for signature. they said they are in process of escrow account and next installment in july will be in escrow account, and they will resume the construction.
We hope everything goes well, and at least in 1 year and half to be ready....:-(
I think first of all we should note down what are our points to worry about.
As the Builder is committed to construct and will handover after few years, which point we should talk about. As i know in Dubai also, all projects never completed in time. One year delay is normal and here there weremany other problems like global economic crisis which runied the property market in UAE.
So, we should note down first the points then we should go for discuss and argue with builder.
For me, the main point is only change in payment plan, i am not agree with this. the amount of 65,000 should be given at the time of handover the apartment.
For Mr. smitty, It is clear that the 65,000 will be at handover time, because from next installment, ur Rent will start, it means the apartment is handed over to u.
i read first contract many times and it has very clear clause that say if delay was more than 6 months they should give us interest
and there is nothing about if electric and water cant be provided so they can delay 2 years (however i think it'll go for next 3-4years)
My contract may be different than yours, but it clearly states in the definitions (clause 1.1)...
Completion Date: means a date not before February 28th 2010...
In my payment schedule the big payment is to be made Nov of 2009. I always thought my handover date was Nov 2009 because that is when the big payment happens, I was mistaken (and not impressed as I am sure I was told at the time of purchase completion was end of 2009). Feb is also when the rental guarantee starts, which logically coincides with the original handover date.
I've got a contract with rental guarantee for Dreams 2, are you in the same dreams development?
Pasargad: Look at the definition for Event Force Majeure (clause 1.1) in your contract and also clause 17.1, which explains what will happen in the event a force majeure occurs. Again, this is in my contract, but yours may be different.
Saw the developer today:
Got told not to pay any further installments until ecrow account is set up and until construction work resumes. Was told work on both GCD 1 and 2 shall resume before the end of this month.
The project of GCD 2 was halted last year , when the developer wanted to alter plans and add another parking floor. This was finally denied by the municipality, but they have found another solution in order to deliver more parking. Then came the new laws and the expected delays in infrastructure work. They kicked in the FM clause. I was told as by contract FM can't delay the project more than 2 years. If the project was delayed more than 2 years, the developer has to pay all the moneys back including interest. Again, this was pointed out by the person I talked to at Star Giga. They promised from now on to keep all the investors updated on construction progress on a regular basis (text and photos)
NEW Payment plan GCD2
To post something like this on here is really hard, not good for uploading stuff.
Here is an attempt. This is for a type C flat.
Schedule of Installments Payments (Rescheduled & Original)
SNO Due Date Old Plan Amount New Plan Amount
1 On Booking 35,000.00------- ------- 35,000.00
2 01-Feb-07 6,000.00 ------------ --- 6,000.00
3 01-May-07 6,000.00------------ 6,000.00
4 01-Aug-07 6,000.00------------- 6,000.00
5 01-Nov-07 6,000.00 -------------- 6,000.00
6 01-Feb-08 6,000.00---------------- 6,000.00
7 01-May-08 6,000.00-------------- 6,000.00
8 01-Aug-08 6,000.00 ---------------- 6,000.00
9 01-Nov-08 6,000.00 -------------- 6,000.00
10 01-Feb-09 6,000.00
11 01-May-09 6,000.00-------------- 6,000.00
12 01-Aug-09 6,000.00-------------- 6,000.00
13 01-Nov-09 65,000.00------------ 7,889.00
14 01-Feb-10 15,000.00------------ 7,889.00
15 01-May-10 15,000.00-------------- 7,889.00
16 01-Aug-10 15,000.00--------------- 7,889.00
17 01-Nov-10 15,000.00--------------- 7,889.00
18 01-Feb-11 15,000.00 ---------------- 7,889.00
19 01-May-11 15,000.00---------------- 7,889.00
20 01-Aug-11 15,000.00 ------------------ 7,889.00
21 01-Nov-11 61,344.00--------------------- 7,889.00
22 01-Feb-12 ----------------------------------- 15,000.00
23 01-May-12 ----------------------------------- 15,000.00
24 01-Aug-12 -------------------------------- 15,000.00
25 01-Nov-12 -------------------------------------- 15,000.00
26 01-Feb-13 ------------------------------------ 15,000.00
27 01-May-13 --------------------------------------- 15,000.00
28 01-Aug-13 --------------------------------------- 15,000.00
29 01-Nov-13 -------------------------------------------- 61,344.00
TOTAL: _______332,344.00____________________ 332,344.00
More
I will talk with them in person in a few days and i will go personally to ARRA.
I think there is no point in the building being finished by Nov 2011 as the utilities issue won't be resolved. Also there is no more talk of rental guarantee, of course in 2011 nobody can move into a place without water and power.
New payment plan of GCD2 B-type apartments
Schedule of Installments Payments (Rescheduled & Original)
SNO..........................Due Date..........................old Plan Amount..............New Plan Amount
1).............................On Booking......................37,000.00............................ 37,000.00
2).............................1-Feb-07 ........................8,000.00.............................. 8,000.00
3).............................1-May-07 ........................8,000.00...............................8,000.00
4).............................1-Aug-07..........................8,000.00.............................. 8,000.00
5).............................1-Nov-07..........................8,000.00.............................. 8,000.00
6).............................1-Feb-08..........................8,000.00...............................8,000.00
7).............................1-May-08 ........................8,000.00...............................8,000.00
8).............................1-Aug-08.........................8,000.00................................8,000.00
9).............................1-Nov-08. ........................8,000.00................................8,000.00
10)...........................1-Feb-09..........................8,000.00.......................................................
11).......................... 1-May-09 ........................8,000.00................................8,000.00
12).......................... 1-Aug-09..........................8,000.00................................8,000.00
13).......................... 1-Nov-09.........................65,000.00...............................8,111.00
14).......................... 1-Feb-10.........................17,000.00...............................8,111.00
15).......................... 1-May-10 .......................17,000.00...............................8,111.00
16).......................... 1-Aug-10.........................17,000.00...............................8,111.00
17).......................... 1-Nov-10.........................17,000.00...............................8,111.00
18).......................... 1-Feb-11.........................17,000.00...............................8,111.00
19).......................... 1-May-11.........................17,000.00...............................8,111.00
20).......................... 1-Aug-11.........................17,000.00...............................8,111.00
21).......................... 1-Nov-11.........................51,168.00...............................8,111.00
22).......................... 1-Feb-12...................................................................... 17,000.00
23).......................... 1-May-12 .....................................................................17,000.00
24).......................... 1-Aug-12 .....................................................................17,000.00
25).......................... 1-Nov-12.......................................................................17,000.00
26).......................... 1-Feb-13.......................................................................17,000.00
27).......................... 1-May-13.......................................................................17,000.00
28).......................... 1-Aug-13.......................................................................17,000.00
29)...........................1-Nov-13 ..................................................................... 51,168.00
TOTAL:............................................................360,168.00.............................360,168.00
Friends, this is new payment plan for GCD2 B type apartment. As per this plan, we have to pay the installments continuously till the full payment. before, the big amount of 65,000 had to be paid at the time of possession, which they have changed and now it is splitted to 8111 per quarter, it means even if the project delays mor, they will get their money from us.
in my opinion, we should tell them to follow the old payment plan and the amount of 65,000 should be paid at the time of possession only, even if it delays we will pay it at the time of possession only. we have singned the contract on these terms so that new payment plan is not aceptable to us.
Also, they have not mentioned anything for rental guarantee in ths new payment plan. so we should ask them for it. because most of us prefered this project due to this attraction.
ur comments and suggestions are required to talk with developer more effectively in this matter.
Regards.
My Plans exactly...
Yes, these are my plans also. The cant change the terms of the agreement at will (to my knowledge) and therefore I will stick to the original payment schedule and give them the big payment at handover. I will be calling Giga to see if they can point out the clause in our contract that lets them cancell the rental agreement at their will and also to ARRA to see what their opinion is. Maybe we are stuck, maybe we aren't... the most important thing is not to panic yet, this is all a part of the game!
My Plans exactly...
Yes, these are my plans also. The cant change the terms of the agreement at will (to my knowledge) and therefore I will stick to the original payment schedule and give them the big payment at handover. I will be calling Giga to see if they can point out the clause in our contract that lets them cancel the rental agreement at their will and also to ARRA to see what their opinion is. Maybe we are stuck, maybe we aren't... the most important thing is not to panic yet, this is all a part of the game!
It is obsurd for them to do
It is obsurd for them to do what they like, changing the contract details and what agreed on initialy about the 8% rental which have no mension in the new payment schedule, how could they get away with this, i think we should all seek legal advice and lodge legal action against the developer to demand compensation or our money back. To me the new payment plan does not mean anything, the handover date on the Nov 2011 i can assure you will not be met.
If any of you going a head with the payment, you should demand evidence on the building progress because the building up to now still at the foundation level.
unacceptable
I sent them an E.mail & asked about rental guarantee,but received still no answer.They dont have right to change the completion date or any other terms of agreement at their will only,or cancel some parts of it.Rental guarantee was the most attractive term of this projects(GCD2)& they ,instead of giving some advantages to purchasers for their delay, are trying to get more too.its really shameful.
There is no point to
There is no point to correspond with star Giga by e-mail, you'll never get answers. I pointed out to them, that in order to restore confidence they need to improve on the customer relations. They have left us in the dark concerning the construction halt even though it was pointed out to them several times. Unfortunately the people in the offices in Deira are totally disconnected with what's going on on site.
I will also go to ARRA even though I was advised, that they are not giving anything out in writing.
I will keep you posted on my findings, when in Dubai.
If we all will put pressure
If we all will put pressure on them to stick with old contract payment plan, it will definately be effective. the contract terms and conditions are agreed and signed by both parties and it is a legal document which can not be changed by one party without approval of second party, otherwise it can be challenged in court.
I think, we should insist on old terms and conditons for payment plan and rental guarantee. they should not eleminate any point from the contract. therefore, i request all friends who booked the apartments in GCD-2, all should insist on same point and must not accept any changes in the contract terms and conditons regarding payment plan and rental guarantee.
they are big cheaters they
they are big cheaters
they make every change make good profit for themselves
and they put us in one way
even they dont give us interest for delay , plus that with remove 8% rental guarantee we are buying units in more price than ago
where is court,government,sherif in dubai
it seems chief and police are partners there
i think if we pay more installments we'll be bigger losers
and what is guarantee that they handover in 2011 , maybe they change everything again and again
and 2011 become 2013 and later that
i want look positive to that but when i open eyes and see reality , there is something different
we paid %25-%30 of price and
we paid %25-%30 of price and tower should be built at least 7 floors
but it's just a fondation , few irons installed under ground!
so where is our money , it's in their bank account
we could hold our money ourselves in our own account ....
now they want more money since may , for what!
we paid already and no progress compare with our losing money
Not to Pay - GDC
My personal feeling that we should not to pay any single dirham beyond original schedule, and as they are playing with our emotion by spliting of big payment into equal installment, but why we pay now we can keep that money with ourselves and pay to them at completion.
I don't have direct investment with GDC projects. Developer is in the fault, why they lounched the project with R Holding when it was known to them that they wont get the infrastructure before 2011, 2012... If they trust on R Holding let they fight with them and not bag the money from poor investore.
Its not at all Investor fault and hance no right to re-schedule payment plan which is not suitable to the investor, even investor should ask the compansation for delay and gauranteed rantel income as promissed.
strange
I am very surprised that no body from ajman government is discussing the problems in ajman projects. As if everything is going fine and at the same time that all investors are now silent as if they dont care about the money they paid.
Okay there is financial crisis, but the problems in ajman projects and delay in starting the construction exists before the crisis and its good the crisis come to break everything and to enable investors to discover the intentions of the developers
one solution
As we see they didnt do anything about GCD2&GCD3
so why they dont allow anyone wants go out of biz and anyone of investors want stay , they give him units in GCD1
then all investors will be glad and it will reduce their problems because they'll have only one project
so they can focus just on one project and do complete it with current scenario
they can't complete GCD2 before next 4 years because they need big materials and workers and just it makes another pain for investors
win win solution
i agree with passargad ,if developer launch 3-4 tower cant manage it its better to cancel development of 1-2 tower and focus more on remaining project ,psyched of these developers are beyond my imagination ,frustration part is they keep us on dark and hoping against hope that things will get better as times goes without taking any action.
Force Majure (GCD)
I spoke with the Star Giga office this morning and they told me that they are officially trying to use the Event Force Majeure (utilities) to justify the delay in the project and to push the ultimate long-stop date to 2011, or beyond. Time to read up on these parts in your contract!
Rental Guarantee
Here is the reply I received from Star Giga regarding the rental guarantee...
Dear Sir,
Thanks for your mail and noted its contents.
We hereby confirm you will enjoy the benefit of three years rental guarantee starting from February 2012 to November 2014 and the detailed schedule will be sent to you shortly.
Regards,
Customer Support Team
Star Giga Establishment Limited
What a kick in the balls! 8 years after I purchase the property, I can move in!
what you do
What you want to do
i personaly dont know them honestly at all and havent trust to them
Re: What you do...
First, collect information about the situation and my rights. Second, register a complaint with ARRA. Third, continue with payments (hopefully with an acceptable payment plan) and eventually take possession of the unit.
Reply from Star Giga
I want to share the reply I got from star Giga concerning several topics, including ELECTRICITY AND WATER.
read it carefully, as the English isn't always clear:
Dear Sir,
Thanks for your mail and noted its contents.
Regarding rental guarantee you will be getting the detailed schedule along with the installments.
We are confident that we would be ready with all such facilities by then. If not, we will be providing you with the required generator and all other facilities by then. But it should be kept in the mind that the operating cost will become higher than the normal utility charges.
The delay are natural part of such kind of mega projects, due to its complexity and dependency on various factors, including governmental regulations, which are beyond our control, therefore to say that the project has been delayed for any exact reason would be misleading. However wish to emphasize one of the main reason is the delay in providing utilities and developing infrastructure in the Emirates City region, and hence, we thought it to be feasible to slow down the construction and match it with the expected availability of the utilities. It may appear as though we are making an excuse in the shadow of utilities but logically a completed unit with the absence of infrastructure facilities does not suffix for the possession as per the sale and purchase agreement.
In order to match the availability of the utilities, we have delayed the construction process which is a requirement to protect many finishing item like Doors, Tiles, etc. If there is no power to run the Air conditioners, it could cause damage to all the items fixed such as Doors, Tiles.
We acknowledge that additional resources to strengthen the contracts team and to initiate the process.
Yes, we will be in touch with you concurrently on the status of this project as well as the milestones achieved. Please note that we also contribute more than 50% of the project cost along with you, during construction period. Please note that we have equal interest in this project, like you. Hence, you need not worry and you have to strictly adhere to the revised payment schedule, which has been sent to you.
Please do not hesitate to contact us for any more queries.
Regards,
Customer Support Team
Star Giga Establishment Limited
Re: Rental Guarantee
about rental guarantee message:
It's clear message , apartments will be handover 2015 surely , so all enjoy! after 6 years since now
and they want more and more money
damn , it's all bullshits and we are all losers who did trust to uae government
if you want pay more goahead but my money is safer in my pocket than i send it out to dry desert
i think we should do a hard action against their fault and got lawyers
they did default first contract strongly and second one isnt legaly because it is accepted only from one hand
Not possible
Going to the court simply means laughing at ourselves. Nothing will happen and we should accept the fact that we lost our hard savings by the ponzi scheme ( emirates city)
Rent Guarantee.
The rental guarantee is after all a guarantee. You may or may not invoke it on possession. If one wants to occupy the unit himself the possession will be in Feb 2012 and not 2015.
Rental Guarantee
Good point.
have you something of date
have you something of date of possition in contract ?
Rental Gurantee
Yes, it states possession will be after the rental guarantee period and not before said period has ended, which is 2010 - 2012.
its good now
I recieved the same E.mail from Star Giga about rental guarantee,& I think its going to be acceptable now.In the current global crisis & in comparing with many other towers which has gathered big amounts without any noticeable improvment in construction,& thier considerable progress in project GCD1,& their reputation as one of the best developers in Emirates,I think we must agree with it & cooperate with them.They should send us a new legal & formal payment plan with their sign & stamp too.
Anyway , I am optimistic now.
Committee
I suggest forming a common grievance committee with one person representing us with all matters with the builder and the Ajman government. This way we will be seen as a strong group on all fronts and will help us meet our common goal.
Got now the payment plan
Got now the payment plan with rental guarantee, too. i will take it to their office and have it signed by someone, because the only thing signed i have is the contract with the old payment plan. As of possession: i willl inquire about this as well. I understand it like Smitty: possession is after the rental guarantee is over. This needs clarification. Will visit them in a few days. will keep you posted. Btw: feel more upbeat now.
Why not we all , who has
Why not we all , who has booked the apartments in GCD-2, launch a complaint with builder and insist on following the Old payment plan. Ofcourse with new dates which can be mutually decided. By that way, we will have to pay the big amount of 65,000 at the time of possession only. whereas in new payment plan, it is splitted in the quarterly installments.
If we all talk with builder and togather we say to make it changed, it will definately work and they will have to do something for it. We have strong reason as we accepted the old payment terms and conditions which were suite us that time. Now for new plan also, both parties should agree then only can be implemented.
That's what I thought too...
"pay the big amount of 65,000 at the time of possession only"
That's what I thought too, but then when I reviewed my contract I noticed the big payment was actually the quarter BEFORE the stated handover date. Are you sure that your contract says the big payment is at/on handover?
Read this Email..
Hello Guys,
We all are facing the same problem and all we are doing is posting our issues here and not taking any action.
I had send them an nasty email demanding my money back and in return received this email so thought i should share this with you all.
HERE IT GOES:
Dear Sir,
Thanks for your mail and noted its contents.
Please find below our answers for most of your queries.
The contract entered between us, is for the purpose of developing and handing over your unit. We have already completed land purchase and have progressed substantially on the design development related works and have also commenced the construction and we are already on the Ground floor. In order to progress further it is important for us to have your cooperation and continued support on the payments.
The only exit option available is termination of the contract and if the contract is terminated 30% of the sale value of your unit will be forfeited as per clause no 9.8 and 15.3 of sale agreement.
It states “In the event of cancellation/termination of this Agreement by request of the Buyer or by default by the Buyer of any clause in this Agreement, all payments previously made by the Buyer, subject to a maximum 30% of the Sale Price will be absolutely forfeited by the Seller” and,
“The Seller and the Buyer agree that the forfeited amount constitutes a genuine and reasonable pre-estimate of the damages that will be suffered by the Seller as a result of such default by the Buyer. The Buyer hereby acknowledges and agrees that the forfeiture of the Agreed Amount as provided for in this clause 15.3 and 9.8, fair and equitable, is not harsh or unconscionable and does not constitute a penalty. The Seller also reserves a right to recover costs and losses, if any, that the Seller may suffer in the process of termination of this Agreement in accordance with clauses 9.8, 15.2 and resale of the Unit”.
Hence, this is not an advisable option at all.
The delay are natural part of such kind of mega projects, due to its complexity and dependency on various factors, including governmental regulations, which are beyond our control, therefore to say that the project has been delayed for any exact reason would be misleading. However wish to emphasize one of the main reason is the delay in providing utilities and developing infrastructure in the Emirates City region, and hence, we thought it to be feasible to slow down the construction and match it with the expected availability of the utilities. It may appear as though we are making an excuse in the shadow of utilities but logically a completed unit with the absence of infrastructure facilities does not suffix for the possession as per the sale and purchase agreement.
In order to match the availability of the utilities, we have delayed the construction process which is a requirement to protect many finishing item like Doors, Tiles, etc. If there is no power to run the Air conditioners, it could cause damage to all the items fixed such as Doors, Tiles.
We acknowledge that additional resources to strengthen the contracts team and to initiate the process.
Please also refer to clause 17.1 with reference to clause 1.1 for – “Event of Force Majeure”
Trust the above clarifies your position in this regard.
Please do not hesitate to contact us for any more queries.
Regards,
Customer Support Team
Star Giga Establishment Limited
Re: Read This...
They make a good point. We all agreed to the terms of the contract and we need to adhere by it as much as they do. What their contract shows is that they looked to the future, came up with a list of possible problems and created a plan to deal with them.
very funny
If they look at clause maximmum penalty why dont look at another clause that says if they delayed more than 6 months they should
return money to us ith interest
goldcrest
delayed more than 6 months they should return money to us with interest - but is not true. They are saying in case of force major like water and electricity they can delay max 2 year, only after 2 years we can ask for the interest. this is the last update from their office, we have been yesterday for signature. they said they are in process of escrow account and next installment in july will be in escrow account, and they will resume the construction.
We hope everything goes well, and at least in 1 year and half to be ready....:-(
all the best
I think first of all we
I think first of all we should note down what are our points to worry about.
As the Builder is committed to construct and will handover after few years, which point we should talk about. As i know in Dubai also, all projects never completed in time. One year delay is normal and here there weremany other problems like global economic crisis which runied the property market in UAE.
So, we should note down first the points then we should go for discuss and argue with builder.
For me, the main point is only change in payment plan, i am not agree with this. the amount of 65,000 should be given at the time of handover the apartment.
For Mr. smitty, It is clear that the 65,000 will be at handover time, because from next installment, ur Rent will start, it means the apartment is handed over to u.
Regards,
not true
i read first contract many times and it has very clear clause that say if delay was more than 6 months they should give us interest
and there is nothing about if electric and water cant be provided so they can delay 2 years (however i think it'll go for next 3-4years)
Handover Payment
My contract may be different than yours, but it clearly states in the definitions (clause 1.1)...
Completion Date: means a date not before February 28th 2010...
In my payment schedule the big payment is to be made Nov of 2009. I always thought my handover date was Nov 2009 because that is when the big payment happens, I was mistaken (and not impressed as I am sure I was told at the time of purchase completion was end of 2009). Feb is also when the rental guarantee starts, which logically coincides with the original handover date.
I've got a contract with rental guarantee for Dreams 2, are you in the same dreams development?
Pasargad: Look at the definition for Event Force Majeure (clause 1.1) in your contract and also clause 17.1, which explains what will happen in the event a force majeure occurs. Again, this is in my contract, but yours may be different.
Visit to Star Giga
Saw the developer today:
Got told not to pay any further installments until ecrow account is set up and until construction work resumes. Was told work on both GCD 1 and 2 shall resume before the end of this month.
The project of GCD 2 was halted last year , when the developer wanted to alter plans and add another parking floor. This was finally denied by the municipality, but they have found another solution in order to deliver more parking. Then came the new laws and the expected delays in infrastructure work. They kicked in the FM clause. I was told as by contract FM can't delay the project more than 2 years. If the project was delayed more than 2 years, the developer has to pay all the moneys back including interest. Again, this was pointed out by the person I talked to at Star Giga. They promised from now on to keep all the investors updated on construction progress on a regular basis (text and photos)