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Go on. Name and shame them.

Go on. Name and shame them.

Rera has vowed to publish names of developers in Dubai who fail to meet their contractual requirements.

February 19, 2009 12:09 by



The Real Estate Regulator Authority (Rera) vowed to “name and shame” property developers who fail to adhere to their schedules or skimp on quality, says Rera CEO Marwan bin Ghalita.

Low investor confidence prompted the authority to take action against developers that have not delivered on their promises in a bid to improve the market’s credibility.

Ghalita also informed developers at a briefing on Tuesday, organized by Badr Al Islami, the Islamic banking arm of Mashreq Bank, that they will keep 30 percent of all payments made by investors if they choose to break their contracts, but Rera will be mindful of investors’ circumstances given the credit crisis, reports Gulf News.

“We’ll be flexible. Exceptions could be made if the investor is unable to continue to pay due to some genuine reasons, such as loss of pay, job loss – which we will have to consider,” he said.

“These will have to be approved by Rera and will be handled case-by-case.”

The meeting also touched upon the issue of freehold visas, which has been a controversial issue since the launch of freehold properties in Dubai. Ghalita stressed that the government is working on the details, which will be made public shortly.

Last week, Ghalita reacted to negative news reports on Dubai’s property market by saying that “Dubai is like a movie star, and just like a movie star everyone is looking at us, adding more pressure.”

He also stressed that negative perceptions of Dubai’s property sector are unjustified: “We understand the feelings of worry resulted from the impact of the global financial crisis but we are against the unjustifiable panic, exaggeration and hitting under the belt by some for the sake of making illegitimate ends,” he added.



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3 Comments

  1. Bob on February 20, 2009 1:00 pm

    Interesting indeed. Would RERA do then something about Victory Heights community developers in Dubai Sports City for their huge delays in villa deliveries, not standing by their commitments to their villa owners, not responding properly and not willing to give any compensation for all these delays???

     
  2. Mark Brown on February 22, 2009 9:14 am

    I am advised that property companies aie trying hard to make contracts Null and Void due to payment delays from buyers, even though in my case the escrow account was not set up by the developer in time

     
  3. RS on February 22, 2009 1:39 pm

    What about refunds to investors on cancellation of such agrements due to non commencement of construction ? In several cases 20 – 30 % has already been collected by Developer & not a stone has been laid even after an year
    EG. Image Residences by AL FARAA PROPERTIES ,

    What happnens when such cases go to RERA ?

     

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