Monday, August 17, 2009

ARRA's permission mandatory for cancellation of projects in Ajman

Property developers in Ajman will not be permitted to arbitrarily cancel any sale and purchase agreements (SPAs), as they will have to obtain permission from ARRA (Ajman Real Estate Regulatory Agency).

According to SPAs signed earlier between the developer and investor, the developer has the right to forfeit the property of the investor if the investor fails to meet payment deadlines.

No developer is authorized to cancel any contract unless they obtain an approval from ARRA. ARRA has been monitoring the situation closely and are permitting investors to fulfil their commitments by offering time, said Omar Al Barguthi, DG, ARRA.

"WE are accepted post-dated cheques from few developers whose projects are yet to begin or whose constructions have halted. We have also opened escrow accounts for them, and will be depositing cheques only when are sure about the progress of the work," Barguthi clarified.

However, no clear information is available on the number of properties forfeited by developers, as of now. Besides, the regulatory authority has accepted post dated cheques from few developers whose projects are yet to reach the proposed level of construction. ARRA is also working out a plan linking payments to construction milestones.

3 comments:

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Anonymous said...

ARRA is a waste of time,i invested with BLP propertys in AJMAN who had escrow account and was registered with ARRA. now BLP have done the off with investers funds, they haven't done any work so how did ARRA let them take the money from this escrow account. which was spose to be construction based, i think this ARRA is helping the thives to con more investers, call them self's muslims what a joke. i hope you all go to hell for nicking our hard earned money.