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New row erupts over Dubai Lagoon investment
Schon Properties has denied payment re-scheduling is under consideration for its Dubai Lagoon investors, despite comments from a senior legal advisor from Real Estate Regulatory Agency stating otherwise.
RERA’s Khawla Madani told investors that payment schedules should be aligned to construction timetables, and that RERA was working towards this with Schon, according to 7 Days on Tuesday.
However, the Dubai Lagoon project is now scheduled to finish construction in phases across 2010 to 2011, and investors remain on payment plans based on previous construction schedules.
“They’re refusing to re-schedule, even though it makes clear sense. If you’re going to give me my apartment in 2011, why should I pay you in 2009?” said investor Jamal Sirhi.
Schon also said that payments for the project are paid into the escrow account, set up after the project began. Sirhi claims that he had given post-dated cheques (PDCs) made out to Schon before the escrow was established, and could not get these returned.
“I asked Schon about the [PDCs] and they refused, saying the only way you’ll get them is if RERA issues us an official letter stating that this person can get his PDCs back.”
Schon told 7 days it could not re-schedule. “For a number of reasons, this would result in further delays for the project, which, for the sake of our investors, we cannot allow to happen”.
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Posted by Elizabeth Green, Walsall, UK on 21 July 2009 at 11:53 UAE time
Would you please give me an update as to whats happening with this development, we have paid the 50% with the remaining 50% to be paid on completion, its seriously behind building schedule, and no one has had the decency to speak with us regarding this matter.
Posted by miss Anita Henry, dubai, UAE on 27 November 2008 at 19:30 UAE time
My Dubai lagoon phase 1 apartment is now hopefully being built, how do we and who decides what the compensation is at the end, is it going to be near the 200 thousand dhs we have all possibly paid in rental, due to lack of building on their part.
Posted by m, torrance, USA on 16 October 2008 at 09:41 UAE time
Schon properties have hurt the investors, they have also hurt themselves in the market, do you think anyone will enter a Schon properties office after this fiasco.
Posted by Bapu on 15 October 2008 at 18:40 UAE time
As you are all aware, we investors have had some sleepless nights with this project.
A forum has been created (with over 100 members) to help discuss these issues.
http://dubailagoon.proboards81.com/index.cgi
Posted by Emilia Dimitrova, Dubai, UAE on 19 September 2008 at 16:09 UAE time
I'm one of the Investors who bought full floor in Quarter Dubai Lagoons. Schon properties officially has announced that the project will delay to 2011.They must be pushed to reschedule the payment as they are not going to use our money to build our Project. We don't mind paying once they start building. RERA should protect the investors .Each Developer who respect his clients is doing rescheduling once Project delays.