Jul – Update – Termination Agreement

Finally closed one chapter. Got my PDC’s back. My direct communication with Sweethomes came to a complete halt.

The law firm kept a more unemotional tone through the whole thing and brought things to a close. They collected the Post Dated Cheques, and had the termination agreement signed. Of course, while these discussions were underway, Sweethomes presented two more cheques twice – an old uncleared one for the second time, and a new one. Duh!

Crooks or Clowns – I can’t tell?

Here’s what I lost so far:
Forfeited Payments -175,000 AED
Legal Fees – 21,000 AED (not counting at least 7 visits to SH Homes Office, phone calls, headaches)
Courier, GPA etc – 1,000 AED
===================================
197,000 AED or US$53,600
===================================

I have to wait until Dec 2010 at the earliest to get AED 175,000 back (50% of total paid). Something tells me that it will involve another lawyer and more chasing – unless Sweethomes has a miraculous change in their corporate culture.

Very very painful, but not to have to deal with their unscrupulous practices, an absent regulator & system, near impossible court system and finally the stupid laws around post dated cheques is Priceless.

June 09 – Ajman Uptown / Sweethomes – Oman

Have a look at the attached blog -

I think this blog captures the crap we’ve been subjected to – specifically (see pdf file or link at bottom):
Muscat Confidential_ Omani papers continue to print any PR crap they are sent

” Basic story: Sweet Homes apparently advertise a deal based on a 10% deposit, regular payments until 50% paid, followed by 25% on completion and a further 25% after that. It seems Sweet Homes asks for post-dated cheques from ‘investors’ who purchase, and then proceed to cash them, because the contract is in reality based on a pre-defined project time schedule and is not related to actual physical construction milestones, simply against a promise to finalise contruction.”

http://muscatconfidential.blogspot.com/2008/12/omani-papers-continue-to-print-any-pr.html

Jun 09 – Post Dated Cheques – PDC – UAE Central Bank

Here’s the link to the UAE Central Bank. I’d urge those whose PDC’s (Post Dated Cheques) are being mis-used by developers &/or cashed at will, without progress, unauthorized endorsements etc. – to write to the bank.

Don’t know if it will work – but they seem to have a well laid out process see;

http://www.centralbank.ae/complaints/complaints.php

Here is the page with specific email addresses:

http://www.centralbank.ae/contact_us.php

Or – Complaints and Suggestions Section

Direct telephone:	02- 6915290 / 02- 6915453
Fax No.:	02-6916004
E-mail:	complaint@cbuae.gov.ae

Jun 09 – Sweethomes Business Practices

As you’ll see below, I rcvd a fax from Sweethomes, on the 21st of June – giving me 3 days to sign and return the cancellation agreement.

Not long after this letter was sent, they tried to cash another 2 cheques – just plain incompetence. These kind of practices, very much summarize my experience with Sweethomes. The more I interact with them, the less trust there is.

There were 7 pages in all – I am just posting the 1st page of the letter. The other 6 were some pictures, notice of setting up the Escrow account etc. All written to suit them.

————————————————————————————
From:
Subject: Re: – Termination of Agreement – 4th request – Real Estate Purchase gone bad in Ajman/Sweethomes
Date: 21 June 2009 9:56:02 PM GMT+07:00

to: husain@sweethomesuae.com, ivy@sweethomesuae.com, saher@sweethomesuae.com, shalin@sweethomesuae.com, rafail@sweethomesuae.com, tabis@sweethomesuae.com, ahmed2@sweethomesuae.com, resine@sweethomesuae.com, mukhtar@sweethomesuae.com, fahad@sweethomesuae.com, commme@emirates.net.ae, amal.h@Arra.ae, latifa.n@Arra.ae, omar.b@arra.ae, info@rholding.com, ialyassi@ajmanrulerscourt.gov.ae, msuwaidi@ajmanrulerscourt.gov.ae, rana.mubarak, husain@sweethomesuae.com, bhope@thenational.ae, ngillet@thenational.ae, lmorris@thenational.ae, content@zawya.com, agiuffrida@thenational.ae, info@rholding.ae, readers@gulfnews.com, richard.spencer@telegraph.co.uk, chip.cummins@wsj.com, stefania.bianchi@dowjones.com, editor@mediaguardian.co.uk, simon.jenkins@guardian.co.uk, joanna.hartley@itp.com, alex.morgan@itp.com, anil.bhoyrul@itp.com, andrew.white@itp.com, desert_blogger@hotmail.com, sean.odriscoll@7days.ae, cranecountry@thenational.ae, abdulbasit@khaleejtimes.com, aneela@khaleejtimes.com, nouf.k@arra.ae, parag.deulgaonkar@awraqpublishing.com, uharnischfeger@thenational.ae, tpantin@thenational.ae.

Dear:

I rcvd a fax from you, date stamped on the 21st of June – faxed earlier today – giving me 3 days from 18th June to sign and return. If it was sent directly to me, it expired before arrival.

If the letter was sent to the law firm – you sent it on Thursday night, to take advantage of the weekend – knowing full well that no one could respond.

I think you, and your company’s ways speak for themselves in ways that I cannot express any better.

Your firm, and other developers in Ajman are taking advantage of the fact that there are more rules governing post dated cheques – than there are around construction start, construction quality and delivery.

Regards
Unit B- Ajman Uptown
SH Letter-June 21st

Jun 09-Trying to retrieve PDC (Post Dated Cheques) Response from Dubai Islamic Bank

If you saw the previous post, I decided to approach the Bank (Dubai Islamic Bank) where Sweethomes would endorse & deposit the cheques.

Here’s what I got back from DIB. At least a prompt response – even if USELESS.
—————————————————————————————–
From: Service.Quality@dib.ae
Subject: RE: Ajman Uptown Escrow Account – #E00697881310B###
Date: 26 April 2009 7:08:44 PM GMT+07:00
To: [buyer], Contactus@dib.ae

Dear Mr. ,

Thanks for contacting DIB Service Quality, please note that regarding your email dated on 25/04/2009 with same above subject, you need to follow the same with developer in order to finalize your request.

Thanking you once again for contacting us.

Best Regards

Service Quality Department

Jun 09 – Trying to retrieve PDC (Post Dated Cheques) – Letter to Dubai Islamic Bank

Having hit a wall with Sweethomes….trying to climb, tunnel under it, or go around.

1) Although Sweethomes cancelled, they don’t want to return uncashed Post Dated Cheques.
2) The new escrow accounts are with Dubai Islamic Bank, so I decided to write to them…. both email & fax.

See below:
————————————————————————————-
From:
Sent: Saturday, April 25, 2009 5:06 PM
To: Contactus (DIB-UAE); Service Quality
Subject: Ajman Uptown Escrow Account – #E00697881310B###

Dear Sir / Madam:

I faxed this request earlier today.

This is a request that DIB not accept any endorsements on my cheques that were made payable to M/s Sweethomes Real Estate – for deposit into the above account.

Mashreq bank, on whom the cheques are drawn – claim that there is no system for the cheques to be endorsed. Having said that – Sweethomes claims to be working on a system with Dubai Islamic Bank whereby the cheques are re-routed or endorsed for deposit into the above escrow account. A total of 9 cheques – worth AED 667,000.

I have written to Sweethomes, to cancel my purchase of this property. They have received my request for cancellation and I am having the law firm draft a mutually acceptable agreement.

If this is beyond your bank’s control, please let me know and I will make other arrangements. If you require any further information to action the above request, please let me know.

Best Regards

Jun 09 – Retrieving Post Dated Cheques (Letter of Undertaking from Sweethomes)

At one point, Sweethomes asked me to sign the attached letter, in order for me to get my PDC’s back.

1) I was ready to sign, but would do so only if they did a simultaneous exchange.
2) As it is, I didn’t trust the crooks one bit, they would have taken this signed letter, not returned my PDC’s and used this letter to solidify their side.
3) If any of you is presented with this Letter of Undertaking – note that in exchange, no where does it commit Sweethomes to give you the PDC’s back by any date.
4) Matter of fact, on the day we were supposed to go in and present the form – I decided to double check and asked Sweethomes if the Post Dated Cheques would be on hand…. their response, come in with the form, and have a discussion….. (this is documented in one of the earlier posts).

(The Usual BS).

If any of you out there is asked to sign the letter (click below for PDF) to get your PDCs back, make sure they actually have it ready for exchange.

New Undertaking Disclaimer

PS – The original was sent by Sweethomes as a word document, I’ve posted a PDF Version

Jun 09 – Post Dated Cheques

Sweethomes has not returned my Post Dated Cheques (PDC). They’re probably holding it hostage for some surprise they intend to spring in the future.

Buyers who have PDC’s outstanding also seem to be perplexed. After the escrow laws were introduced, the old cheques became invalid – at least technically – because the payee name has been changed.

Old cheques were made out to Sweethomes Real Estate or Sweethomes Holdings.
The new payee should be – Escrow A/C- Ajman Uptown-Sweet Homes.

Sweethomes position – see quotes below

“When Escrow account is opens we would endorse all your cheque to the Escrow Account under your property No.
We request you to bear with us, sooner when we received the Escrow account No, we will intimate you for your needful and necessary action”.

How they will endorse it without using whiteout…. is beyond me. If any of you has any experience with this, I’d be interested in hearing about it.

On the bright side, they seemed to have stopped trying to cash into a non-escrow account… for now.

Jun 09 – Stalemate…

Stalemate….for now. Appreciate any ideas from anyone that comes across this site.

1) Watching a few others who are actually hiring a lawyer and going through with a law suit to see if it feasible in my case. It’s a cost/reward equation + there’s the principle issue of the whole thing.

2) Mobilizing buyers seems to be key. A buyer here, a buyer there…. developers such as Sweethomes just divide and conquer. If you look at the buyers groups that have made progress in Dubai – most have had at least 50 buyers.

3) By the way, since March 09 or so, construction has begun in ernest. I may be wrong, but of the 1500 villas, I think they are only building some. If you, the reader, are a buyer in this project – go out to the site and confirm that your individual unit is being built.

4) If after reading all this, you want this Begonya unit, happy to let go at OP less AED 178,500 which is what I would loose to SHomes…. or ~841K. Having said that, I still wouldn’t recommend it…. unless you are a lawyer (you can fight them cost effectively), bill collector (you must see deadbeats like this all the time) or a dentist (who enjoys pulling teeth) yourself.

Jun 09 – R Holdings Associated With Sweethomes

See below for clarification from R-Holdings. I didn’t bother writing back.

They just signed a letter with the fox to guard the chicken coop…. irrevocably (until 2012)….. oh well. If you are going to hold up this part of the letter, how about other elements like the visa etc? Since R-Holdings reneged on the visa – also stated in the attached letter – surely go ahead and renege on the irrevocable handover to Sweethomes – or at least go exercise your right to make Sweethomes perform before they drag your reputation through the mud.

—————————————————————————
From: info@rholding.com
Subject: Termination of Agreement – 4th request -RealEstate Purchase gone bad in Ajman/Sweethomes
Date: 17 June 2009 2:57:39 PM GMT+07:00
To:
Cc: Sweethomes (10 recepients), commme@emirates.net.ae, bhope@thenational, lmorris@thenational., Arra.ae, cranecountry@thenational.ae,

Dear Sir,

We confirm the we are R Holding, the same company mentioned in your attached letter.

Please note that the letter clearly states that full management rights for the “Ajman Uptown” project are given to Sweet Homes Real Estate & Holding “Irrevocably manage & maintain the project”

Therefore, the issue addressed is a management issue, which lies with Sweet Homes management of the entire project.

We hope to have clarified the situation.