Escrow Related Information

[thedoctor]

Hi,
I searched for my developer on the site but could not find them.

its the first group and the development is metro central. Does this mean they do not have to follow law13?

thanks for your help

[escrow_officer]

Thedoctor,

If it not registered then RERA " should " force them to get register with them and open an escrow account for the project. If it is not happening then its RERA's fault. Either they should have an explanation for this or confirm whether registration process is in already in progress.

[TommyC]

Originally Posted by escrow_officer

TommyC,

As long as ur developer has done registration with RERA then u dont have to worry about it. Just check with them whether they have given a list of all current unit holders to RERA or not. If they have then all sort of transactions would go through them. If they havnt then they are in the queue as RERA is contacting these developers one by one and getting this registration done. So in that case Wait n See. There is no "Transfer Fee" from developers any more. Dont pay them. They can only charge u Administration Fee.

showbiz,

Check on RERA website whether they have registered the project or not. Whether an escrow account is in place ? Registration has been done according to Law 13? After that all u can do is " Push them " to transfer ur money to escrow and make clear that in future u will only deposit money directly in that escrow account only.

Any comments in the light of what has just been revealed by RERA regarding the law not applying to anything before today, and developers may keep 30% of CONTRACT VALUE?

[escrow_officer]

Tommy,

Law applies to all those developers for whom unit & unit holders registration has been completed. As I said many developers are still in queue so they can follow their routine process as before Law 13. As soon as ur developer registers u with RERA then all transactions would go through them.

Regards

[mirpuri]

Originally Posted by escrow_officer

Tommy,

Law applies to all those developers for whom unit & unit holders registration has been completed. As I said many developers are still in queue so they can follow their routine process as before Law 13. As soon as ur developer registers u with RERA then all transactions would go through them.

Regards

hi,

I entered an off-plan purchase in 2006 and have been paying in stages for this buy. I would like to enquire, as this is currently under construction, does the Escrow Law apply? I have 3 payments left and the developer is still asking to pay into his account.? Is he right?

Thankyou for any assisstance you may be able to provide..

mirpuri

[TommyC]

Could use a summarizing view of what Law 13 actually says right now, there seems to be a lot of confusion regarding this. escrow_officer to the rescue?

[escrow_officer]

Mirpuri,

Stop paying money to any other account other than Escrow.

Ask him that he wouldnt receive any payment anymore until he provides you the detail for escrow account.

Mention ur unit number at the back of each cheque with ur signature and keep a copy of that cheque with u. Ur money is not safe outside Escrow at least not at this time while market is suffering. I am seeing a panic on its intial stage already. Please becareful.

Tommy,

Summary as provided by someone else on this forum says it all. But in terms of its confusion, cant say any thing as even RERA people are explaining it in so many ways. Confusion comes into picture as big players dont listen to RERA at all. They appreciate RERA regulation but they dont care about it.

Summary

• Any sale or other disposition may be void if the unit is not recorded.

• No master developer or sub-developer can commence or sell units unless approvals have been granted from the competent authorities.

• No master developer or sub-developer are allowed to charge fees for the sale or re-sale of units unless fees have been approved by the DLD. It is anticipated a fixed fee of around Dhs 5,000 will be levied.

• Going forward a developer wishing to market his project will need to use an accredited broker.

• A purchaser defaulting under the terms of the contract with a unit registered with the Interim register will then be given a 30 day notice period to comply, if after this period he cannot meet the contractual obligations the developer "May " cancel the contract and repay the purchaser less a deduction that doesn’t exceed 30% of monies paid. (This applies to whatever stage of payments has been made, so the more paid the more one stands to lose if they default).

Regards

[thedoctor]

Hi Escrow officer,
Could you please answer the question, Is it 30% of the contract value which is retained or 30% of the amount paid which is retained for off plan sales?

Thanks

[mohammedno11]

Just to clarify:

I went to day to the Land Department to ask them again:

the circular changed the whole article 11, and is not just an interpretation.
They know that !!

Contracts signed before 31.08.2008:

Default will be according to the contract !

Contracts signed after 31.08.2008:

You will loose 30% of your contract value. And you will loose 30% of all payments you made in additionto the 30% !

I asked them that the law says the money needs to be retained not forfeited, and needs to be paid back to the purchaser after he resold the unit.

the lady in the Land Department made some phone calls and than said, The Land Department meant forfeited not retained, thats why they made the circular to avoid missunderstanding.

Comment:

Now that they recognized that prices can also fall instead of a moderate growth (as expected in summer this year) they chnaged the law to cover their own governmental developers from makeing huge losses !!

40 People already signed up with a value of already 400 MIO AED !!!

Yalla lets join hands:

investorslaw13 @ hotmail . com (please remove the blanks when you make copy and paste)

Spread this email adress ! In the middle of this week I will merge all the emails and I will sent an email to arrange the first meeting !

Regards

Mohammed

[TommyC]

Good job Mohammed, already sent an email to you and I'm ready to meet up at any time at any place. Will take sick-leave if necessary, this is a MAJOR concern!