Living Legends developer suspends off-plan payments

PAYMENT ON HOLD: Tanmiyat has told customers who have bought off-plan units in its Dubailand (pictured) development not to make any payment until the end of April. (Artist Impression)

Tanmiyat, the developer behind the Living Legends project in Dubailand, has suspended collection of all payments and installments until it has drawn up a revised payment plan for the project, it announced on Monday.

The property developer has made the move in response to a new directive from Dubai’s property regulator that says every developer must pay 100 percent of the cost of the land before it can start selling ‘off plan’.

The Real Estate Regulatory Agency (RERA) directive, which came into effect last month, also stipulates that the developers must inject a minimum of 20 percent of the project value to commence construction, and payment scheme had to link payments with construction status.

In a statement Tamiyat said it had already informed its customers to stop making payments until the end of April this year, when the new payments scheme would be finished.

The firm had already complied fully with the first two parts of the directive, and was now revising the payment schedule of the Living Legends to fulfil the latter condition, the statement added.

“Tanmiyat is committed to remaining in compliance with all applicable laws. We already own the land for the Living Legends, and we have paid the land price in full to Dubailand; therefore, this new legislation does not significantly affect us.

What we have decided to do is to revise our payment schedule to reflect the project construction plan,” said Firas Al Attili, Tanmiyat Group's financial director.

“We believe that this new directive is an important step in building a solid foundation for the future of the UAE’s property market, which will ensure its continued growth and shore it up against fluctuations in the global economy,” he added.

Living Legends is a AED2.7bn multi-purpose development located in the Dubailand complex on Emirates Road - once completed it will extend over an area of 1,340m sqm.

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READERS' COMMENTS

Yes, it is always the developer's fault
Posted by Sand Jockey, Dubai on Thursday 19 March 2009 at 09:02 UAE time


Correct me if I'm wrong but NOBODY forced anybody to buy properties in Dubai. NOBODY forced you to sign a contract that even when reviewed by a layman was fraught with danger. NOBODY forced anybody to take out ridiculous loans at rates that were virtually unaffordable.

If the above is true that NOBODY is at fault. And since NOBODY isn't a person you have only one person to blame. The one you see looking back at you in the mirror.

This may sound harsh but either pay the loans or default. Other than that, I am more than happy to serve you some cheese with that whine!

SJ

TANMIYAT LIVING LEGENDS
Posted by Ali, Sharjah, United Arab Emirates on Wednesday 18 March 2009 at 16:42 UAE time

I have bought 3 Villas in this project in July 2006 & is 40% paid.
So this news reports has no effect as they alreaday taken 40% payment wherein they could take max 20% according to current status of project. I visit project site very regulalry. I think project will not be completed before 2011.
If RERA want to help us & help themselves, they should strictly monitor it & ensure that further payments are strictly linked to actual construction progress.

Living legends Tanmiyat
Posted by Osama Humaid Al Hamdani, Sharjah, UAE on Wednesday 18 March 2009 at 10:07 UAE time


I have bought two flats in living legends and paid 15% for each unit THREE years ago and till now they havent even started the project. RERA should stop these projects who havent started yet and get back the money of people.

RERA IS RERA
Posted by M.Iqbal Aboobakar, Sharjah, UAE on Wednesday 18 March 2009 at 03:36 UAE time


I RECALL A PROVERB IN URDU WHICH WE USED TO LEARN IN SCHOOL IN THE 70'S , SAYS "TOOTI KI AWAZZ NAKAR KAHNA MEIN KAUN SUNEGA " ( WHO WILL HEAR THE PARROTS VOICE IN IRON MONGER'S SHOP).
TODAY I KNOW THE MEANING THAT NO DEVELOPERS HEAR THE VOICE OF RERA ,AS THEY EVEN CANNOT HEAR THEIR OWN VOICE.
I HAVE PAID TO A DEVELOPER 40% TILL JUNE 2008 AND THE PROJECT COMPLETION IN JUNE 2009 ,AND STILL NO WORK HAS STARTED ,ON TOP OF IT ON RERA'S SITE ,IT DOES NOT HAVE EVEN AN ADDRESS ,FURTHER TO IT THE PROGRESS REPORT SITE IN RERA IS ALSO AN EYE WASH.AS IT DOES NOT SAY WHEN THE PROJECT WAS SUPPOSED TO BE HANDED OVER ,HOW MUCH IT HAS BEEN DELAYED ,ETC ETC.

RERA HAS A FIXED COMPLAINT SITE ,THAT MEANS WE CAN COMPLAIN ONLY ON 7 THINGS ,WHICH I AS A COMPLAINANT CANT COMPLAIN ,IF I WANT TO COMPLAIN.

I BOUGHT AN OFF PLAN APARTMENT IN LONDON IN 2004 AND THE DEVELOPER HAS PROMISED ME HANDOVER ON 31ST JULY 2005 ,THEY CALLED ME AND HANDED ME OVER ON 21ST JULY 2005,THIS IS CALLED A DEVELOPER.

IF THEY TELL ME I SHOULD GO AND BUY THERE ,THIS IS NOW WHAT I AM DOING.

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