Ajman Uptown – Real Estate Buy Gone Sour

Chronology of a Real Estate Purchase in the UAE (Ajman) Gone Bad

6 Responses to “June 09 – Ajman Uptown / Sweethomes – Oman”

  1. cheatedalso said

    I am in a similar situation to you – while I do not have post dated checks with them. I have been asking them to cancel my villa for the last 6 months. They have told me since Jan that they have stopped all cancellations. It is interesting to see that they have given you a termination letter – which has some legal standing.

    I believe these guys have no intention of refunding any money. Unfortunately I live in the US and have no easy way to fight a lawsuit in Dubai. Is there a concept of a class action lawsuit if many investors agree to join hands?

  2. ajmanuptown buyer said

    Cheatedalso:
    Thanks for the note. Lucky you for not having issued Post Dated Cheques. There is no class action, like you know it in the US. Each claimant has to file a separate case. Also, since there is no precedent system – technically at least, two very similar cases can have a different outcome. One wins, the other looses – all based on the judge.

    Each claimant – has to come up with 7.5% of the disputed amount, or AED 30,000 – whichever is lower. That along with the very high legal fees are why people have not rushed to the courts for relief. I hear conflicting info on how much of the court fees are returned/or can be claimed from the loosing party.

    What is happening is that bunches of buyers are banding together. Filing separately, while using the same law firm to share legal fees. Law firms also seem to be negotiating bulk rates – and an end to end fee. Of course, it also depends on how similar the various buyer complaints are.

    I trust you had the foresight to stop ~6 months ago?

  3. ajmanuptown buyer said

    Cheatedalso: One more thing – buyers banding together seems to get ensure media coverage….which then probably brings out more buyers. See this release – that I saw yesterday.

    Ajman investors to file fraud case – http://www.thenational.ae/article/20090624/NATIONAL/706239822/1010

  4. Cheatedalso said

    Ajmanuptown Buyer: I did stop payments since Jan – I am reluctant to call it foresight though, still it could be worse for sure. What really bothers me is the complete un-professionalism of this outfit, they seem to have no idea what they are doing. I can’t believe they can run a company this way!

    I have been meaning to start a blog as well, and was really glad to see yours. Keep up the good work, I am happy to help in any way I can. The idea of a groups of investors negotiating bulk rates seems attractive, I will try and look around for other buyers in the same boat. However, they may not be able to pay anyone if they lose the case.

    The only thing that would bother them is bad press, IMO.

    • ajmanuptown buyer said

      Cheatedalso:
      Thanks again the comments. Certainly keep your eyes open and stay in touch.

      There are other buyers at:
      http://www.emiratescity.org
      http://www.skyscrapercity.com/showthread.php?t=511492&page=18

      Even if we don’t all end up going to court, getting some press coverage is a start. The press takes notice – when there are at least 15-20 buyers.

      Frankly, I don’t even know if bad press bothers them – they look around Ajman, and some of the other developers have already absconded / done a runner with people’s money. Hundreds of towers. Judging by those low standards, they probably feel they are vastly successful.

      Matter of fact – at one of the above forum, someone posted this link – in which one of the individuals mentioned – sounds like the principal behind Sweethomes. If it is the same individual, that would explain a lot.

      http://www.paksearch.com/br2000/Jan/16/NABSEEKS.htm

  5. Hassan said

    Hey All,

    I have a property with Sweet Homes and have cancelled the property since Jan just like the lady from US, i was ignored till date until i finally told the informants that i was going to file a lawsuit against the firm, the very next minute i got a call from the PA of the CEO asking me to meet him personally. This is what he said: We at sweet homes can not and will not refund and except any cancellations because we are under construction at full swing, infact he offered me a cut down on the installments to 60% and asked me to continue with the plans. CAN U BELIEVE THIS GUY! Any ways i said ok and i am looking for a lawyer to proceed to court. Any recommendations from yourside?
    What happens if i loose in court, will i loose everything that i have paid for?

    Regards
    Hassan

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