Z
Zishan M. Khan
New Member
With the following breaking news, it is evident that RERA is ensuring that developers deliver what they promise and charge only as agreed.
Developers in Dubai cannot charge extra money to the client or raise the price of the property at the time of handover even if the size of the sold unit is increased. This news was confirmed by Marwan Bin Ghulaita, CEO of the Real Estate Regulatory Authority.
The issue came to light and gained prominence when ACW Holdings, substantially increased the price of the units in Hanover Square, a project based in Jumeirah Village Circle. In some case, the developer raised to price by almost 50%.
The developer was stopped from doing this after RERA intervened and made it very clear to the developer that no extra money can be charged.
Marwan Bin Ghulaita said: “Two weeks ago the Real Estate Regulatory Agency (RERA) the regulatory arm of Dubai Land Department held a meeting with ACW Holdings to discuss the issue they have with the investors.
“In a friendly manner, we have managed to solve the issue between the investors and the developer following the laws and regulations issued by Dubai Executive Council, and based on Executive Council Resolution No (6) of 2010 Approving the Executive Regulation of Law No (13) of 2008 Concerning the Regulation of the Interim Real Estate Register in the Emirate of Dubai. Clause (2) of article (13) states that any area in excess of the net area of the sold Real Property unit may not be taken into consideration.
“Unless otherwise agreed, the developer may not claim the value of such extra area. Based on what is mentioned above, the developer is not allowed to ask for an increase and there will be no extra charges on the investors.”
I believe this news is valuable to any investor who has been asked to pay extra due to increase in the property size.
.
Developers in Dubai cannot charge extra money to the client or raise the price of the property at the time of handover even if the size of the sold unit is increased. This news was confirmed by Marwan Bin Ghulaita, CEO of the Real Estate Regulatory Authority.
The issue came to light and gained prominence when ACW Holdings, substantially increased the price of the units in Hanover Square, a project based in Jumeirah Village Circle. In some case, the developer raised to price by almost 50%.
The developer was stopped from doing this after RERA intervened and made it very clear to the developer that no extra money can be charged.
Marwan Bin Ghulaita said: “Two weeks ago the Real Estate Regulatory Agency (RERA) the regulatory arm of Dubai Land Department held a meeting with ACW Holdings to discuss the issue they have with the investors.
“In a friendly manner, we have managed to solve the issue between the investors and the developer following the laws and regulations issued by Dubai Executive Council, and based on Executive Council Resolution No (6) of 2010 Approving the Executive Regulation of Law No (13) of 2008 Concerning the Regulation of the Interim Real Estate Register in the Emirate of Dubai. Clause (2) of article (13) states that any area in excess of the net area of the sold Real Property unit may not be taken into consideration.
“Unless otherwise agreed, the developer may not claim the value of such extra area. Based on what is mentioned above, the developer is not allowed to ask for an increase and there will be no extra charges on the investors.”
I believe this news is valuable to any investor who has been asked to pay extra due to increase in the property size.
.
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