Ajman realty regulator cracks the whip
Developers in Ajman will not be allowed to arbitrarily cancel any sales
and purchase agreements (SPAs) and will have to seek permission from
the Ajman Real Estate Regulatory Agency (Arra), its chief told Emirates Business.
"No
developer is authorised to cancel any agreement unless they get
approval from us. We are monitoring the situation and are allowing
investors time to fulfill their commitments," said Omar Al Barguthi,
Director-General, Arra.
According to SPAs signed previously
between the developer and the investor, the former has the right to
forfeit the property of the latter if he/she fails to meet payment
deadlines.
However, no clear information is available on how
many properties have been forfeited by developers as of yet. Besides,
the regulatory authority has taken over post-dated cheques (PDCs) from
some of the developers whose projects have not yet reached the desired
level of construction.
"We have taken PDCs from some of the
developers whose projects have not yet started or construction has
halted. We have opened escrow accounts for them and will be depositing
the cheques as and only when we are sure that work is progressing."
Arra is also working out a regulation linking payments to construction milestones, he said, without delving into details.
In
June, he had told this newspaper that the authority had come up with a
new formula for collecting payments in relation to the progress of the
construction of the projects.
"The regulation is in the final
stages and we will announce it soon. We want to protect both the
developer and the investor," Al Barguthi said.
When asked if any
projects were on the verge of being cancelled, Barguthi said there were
a few applications on his desk for cancellation of registration of
developers.
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