A developer cannot compel an investor to switch over to another project if the project, where he had originally invested, is put on hold, Real Estate Regulatory Agency (Rera) CEO.
“Investors can’t be forced to accept any offer by the developer and they both need to agree to do the transfer,” Marwan bin Ghalita told Emirates 24/7.
“Investors always need to go back to their contract and check how does it deal with delay project since it is a contractual agreement between both parties. We always support amicable solution between developers and investors.”
His response came after a number of investors told this website that they were being forced by developers to switch over to an on-going project, albeit at a higher price and to a larger-sized apartment.
EG, an Indian investor, told this website: “ I had invested in a project that was planned to be built in the third phase of International City in September 2005. Since the project never started, the developer has been telling me to move to another project in Jumeirah Lakes Towers, which I don’t want to.
“The developer has been quoting me a ‘very’ high price while the offer is also for a much bigger apartment. So I have to pay more than the price I had booked my apartment in International City.”
He added: “I have been requesting the developer to refund my money, but since the project has not been officially cancelled, the developer has refused to return my money. There is no escrow account and I have no way to know where my money is.”
The project was to be completed in December 2007, but no work has started on the project. It is understood that Nakheel has put the phase 3 of International City on hold.
A number of developers have been offering or, in some cases, forcing investors to move to their other projects which are under construction. By using the force majeure clause, developers have put a number of projects on hold, instead of seeking cancellation and offering refund.
Earlier this week, Nakheel, the Dubai-based master developer, said it was ready to handover 335 apartments in
Masakin Al Furjan, South Village, Al Furjan, from June and no default was likely since units were sold through consolidation offer made to investors.
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