Friday, May 29, 2015

First Questions

As investors, these are some of the questions we should be asking:
  1. Are our payments going into an escrow account?
    Yes. Buyers make payments to "Town Square Zahra" account at Noor Bank PJSC, project no. 16553236--recorded at Dubai Land Department's list of approved developers.
  2. Do we have access to the escrow account statements so that we can verify that payments are being deposited and kept there?
    According to Dubai Real Estate Legislation, depositors or their representatives may gain access to their own accounting records and may request copies of such records. (p124)
  3. Which contractors are being appointed?
    response pending
  4. What are the relevant building codes which apply to this development?
    response pending
  5. What are the anticipated maintenance and management fees which owners will be required to pay upon handover and what are the fees based on?
    Fees are expected to be 14 dhs per square foot, not including balconies--as reported to me by an Nshama property advisor.
  6. When making the initial staged payment we were required to make an extra payment at 4% of purchase price for title deed registration. Where then are the deeds? What documentation are we entitled to beyond a payment receipt?
    The Offer to Purchase document refers to this payment as pre registration and/or final registration charges may be levied [or] changed by the Land Department, ERES [Emirates Real Estate Solutions] and/or the Vendor. Further to this, the payment receipt acknowledges these as Land Regestration and Oqood fees.
These are a few questions worth looking into. I welcome any others from other investors.
In addition, in asking whether installments could be paid by credit card, I was told yes with a 2% fee applied.

Updates--above and below in colored font (12 June 2015):
    The escrow account among other functions provides assurance that payments collected from purchasers will be used solely for the Al Zahra project and not for any other Town Square projects. Article 9 of Law No. 8 under Dubai Real Estate Legislation states:
    An Escrow Account will be opened in the name of the project and will be dedicated exclusively to the construction of that Real Estate Development project.

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