Owners of a building by Damac Properties are up in arms after the developer asked them to pay an extra five per cent of their property value weeks before the final handover.
Owners of units in the Lake View building at the Jumeirah Lake Towers received a notice from Damac on February 9 stating that the floor space of their unit has been revised and that they have to pay between Dh30,000 and Dh55,000 extra on their final invoice, otherwise they will be charged a penalty or risk losing their property. The handover is this Sunday.
Ali Mohammad, owner of a two-bedroom unit, said Damac has turned down his request to have his apartment measured by a surveyor.
“They said I would have to pay the additional fees by the handover date. Only then would they reimburse me if any discrepancies were found with the measured size of the apartment,'' said Mohammad.
Bank executive Salman Jawaid, who bought an apartment in September, said the fee was “unjustified'' as the mortgage deal stipulated that “the first payment was to be made on the day of the handover''.
Roger Fleming, who bought a one-bedroom apartment, said he has been asked to pay Dh35,000 for an extra 54 sq ft.
Land fee
Fleming said he was puzzled by the two per cent shown in his invoice as “land fee''. “I contacted Rera (Real Estate Regulatory Authority) and found out the land fee is one per cent and that it should be paid directly to Rera,'' he said.
Niall McLoughlin, Damac Senior Vice-President for Corporate Communications, has urged owners to be patient. He said the interpretation of Article Number 12 of Law 13 has yet to be clarified. “We expect Rera to shortly issue by-laws in relation to area variations. Obviously, we will adhere to any regulations issued by Rera.''
Your comments
It is very disgusting to see, that Damac is now asking every owner to pay for parking bay or the unit will not be registered in your name, and so you cannot sell it. Cost of parking bay which is compulsory as the say £15,000 ridiculous or what. they are trying to milk every drop out of us. What next?
Anonymous, United Kingdom
Posted: March 14, 2009, 20:36
I guess now DAMAC is the epitome of all that is wrong with the real estate market in Dubai. Gross malpractice, shocking treatment of employees (and former employees), nil management and spin and b*llsh*t to die for. It’s just a very big bubble waiting to burst.
In any developed economy DAMAC wouldn’t be trading. Where else could a company take billions of dollars of people’s money and give them nothing back in return. More importantly much of these billions were taken ‘before’ the Dubai government introduced regulations to make companies such as DAMAC put such money into escrow bank accounts to stop DAMAC using such money to prop up its ailing, failing business. WHERE IS THIS MONEY NOW? How safe is this money? The reality is that the money isn’t there any more. It’s been spent to prop up the bubble now that all the investors’ money has dried up in the current recession.
Ravi, United Kingdom
Posted: March 11, 2009, 14:58
This is typical DAMAC. The tower is more than two years delayed, and DAMAC was taking all the investors for a ride. Now, they want to extract more money from the owners. I still remember when they sent a letter that explained that they needed to change contractors in order to avoid their penalties. DAMAC, face the reality and don’t try to tell even more stories than you already have; it will harm Dubai’s reputation.
Oscar, Germany
Posted: March 07, 2009, 21:51
I also own a one-bedroom apartment in Lake View and have found DAMAC’s latest re quests to be unlawful and disgraceful. Owners have waited over two years for the handover, and this is how we are treated: asking for illegal fees and no mention of promised compensation?
Anonymous, United Kingdom
Posted: March 06, 2009, 21:58
I have been charged Dh73k for extra charges and penalties along with the 2 per cent registration fees they have done. They have done this to every single person who purchased in Dubai, and I am coming over from the UK to sort this out.
Anonymous, United Kingdom
Posted: March 06, 2009, 02:10
I have received these claims together with hundreds of others. Trying to get answers from DAMAC in this matter is impossible. Either you get a standard reply, without clarification, or you get no reply at all. Even though I submitted the complaint in every possible form. All people buying property from DAMAC should be aware of the unsavoury tactics they are using. In this case, they are overcharging the buyers while delivering a property almost two and a half years late! I am appalled.
Niklas, Sweden
Posted: March 05, 2009, 21:12
DAMAC needs to respect their clients because their project, Lake View, is over two years late. Instead they have charged all owners for the increase in excess area and not even letting them measure it!
Anonymous, Pakistan
Posted: March 05, 2009, 20:48
DAMAC has no right to insist that investors pay them 2 per cent Land Registration Fee when they actual fee is 1 per cent and payable to RERA. It has nothing to do with them. What are they hoping to do with the other 1 per cent.
Anonymous, United Kingdom
Posted: March 05, 2009, 12:58
I am an owner in Lake View, and I have also been hit with these unsubstantiated charges. I bought my place in 2004. DAMAC are delivering this development two years late, and they are trying to bully owners into accepting their terms or face penalties. They should be ashamed of themselves.
John, United Kingdom
Posted: March 05, 2009, 11:31
