Diary of a distressed property investor, Part III
My next installment payment has been pushed back by two months. But I’m still in trouble.
January 20, 2009 10:27 by Dana El Baltaji
I harassed my developer with calls, and threatened to expose them for the lying, unprofessional clowns they are. I forwarded Rera’s regulations to them, demanding to know what they’re going to do about it. And yes, I yelled. A lot.
The more they tried to calm me down, the more I wanted to rip them apart. They had no answers for me. They had no alternative payment plan, and they wanted to know why I was causing “trouble.”
“Because you’re liars,” I said. I could’ve been more diplomatic.
I turned to Rera to find out what would happen if I wanted to get out of the contract. They said that according to their regulations, I can walk away with 70 percent of the money I put in. The remaining 30 percent and my AED10,000 deposit would go to the developer. It’s a big chunk of money to lose.
Then, two days ago, I got an email from my developer stating that they are pushing back the due date for my next installment to April 2009. They still haven’t addressed Rera’s new regulation. They told me that Rera comes out with new laws every day.
“So?” I asked.
“So, a law can come out tomorrow, that’s so!” the sales manager yelled.
I think my developer and I have lost that loving feeling.
So here’s where I stand: my next installment is due in April, and I’m hoping that by that time, my developer would’ve been approved by a bank. If not, then Rera has promised it will prepare a letter addressed to my developer stating that they cannot ask for the next payment until the construction matches the installment.
If by some miracle my developer manages to build enough of the structure to demand the next installment, and they haven’t been approved by a bank yet, I’ll have no choice but to break the contract. I won’t take out a loan to pay for the upcoming installment, because I have no guarantee that the developer will be approved by the time the next payment is due. And the last thing I want is to be in debt.
This is turning out to be a very expensive lesson for me.
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