Tameer acquires 200 units, to take 600 more

Tameer Holding, a Dubai-based developer, has completed the repossession of 200 units by October-end and now plans to take back another 600 units for which termination process has begun, company president told Emirates 24|7.

“We have repossessed 200 units by the end of October and plan to terminate another 600 contracts. The total terminations will be only 13 per cent of our customer base,” said President Federico Tauber.

“We already know which customers are committed to the project and which ones are not. So we have a plan for termination done as per the regulations stipulated by the Land Department of Dubai.”

Tameer is the developer of Princess Towers in Dubai Marina.

Tauber said they are not seeking any damages from defaulting customers even though the Executive Council Decision No 6 of 2010 gives them the right to impose certain penalties.

In August, this website had reported that developers in Dubai were no longer moving court against defaulters, but were cancelling the sales and purchaseagreements (SPAs), retaining whatever monies have been paid till the time of default.

The developer claimed the number of defaults had considerably reduced this year compared to 2009.

“Defaults have reduced by around 30 per cent compared to 2009 as people have started paying. Even the bank are paying on time…”

Tauber said that the company has no plans to go public or launch any sukuk to raise funding for its seven projects, which are currently under construction in the UAE.

“We have funds to complete our project and we follow a self financed model… even our shareholders have been supportive. Our goal to complete and handover all our projects,” he added.

What Decree No 6 of 2010 says:

Law No 13 of 2008 as amended by Law No 9 of 2009 and pursuant to the Executive Council Decision No 6 of 2010, if the purchaser is in default and did not rectify his default after sending him a notice from the developer, the developer has the right to approach the land department and request the termination of the SPA and in this case the land department will send a 30 days notice to the purchaser to rectify his default, if not the land department will cancel the SPA from the Interim Real Estate Register and the developer can retain an amount of the purchase price based on the percentage of completion of the project, i.e. if the project is 80 per cent or more completed then the developer can retain the full amount paid and claim for the balance of the purchase price or terminate the SPA and retain 40 per cent of the purchase price.

-If the project is 60 per cent or more completed then the developer can retain 40 per cent of the purchase price.

-If the project is less than 60 per cent completion then the developer can retain 25 per cent of the purchase price.

-If the developer did not commence the project for reasons beyond his control then the developer can retain 30 per cent of the amount paid.

Follow Emirates 24|7 on Google News.