#PROJECT-Ras Al Khaimah: BAB AL BAHR RESORT

[Morrismarina]

Did your contract provide for an increase in the puchase price if your unit was built larger than the original size ??

[Dodger26]

I have just joined this forum but have been reading it for a while. I am also in the process of buying an apartment in this development.

Forming an end users group I think is a good idea. Collectively we need to push back very hard on this whole concept of paying for utility connection fees as well as everything else.

You don't buy a new car then pay extra for the keys.

[beer51]

These charges are not warranted. Talk about cowboys or camelboys.

[willBB79]

in any property i've dealt with before there have always been connection fees but not anywhere near as high as this.

could this be something to do with rakeen using temporary utilities whilst they're still working on connecting to the rest of the island?

[Dodger26]

Come on guys and girls we can post comments for ever on this.

Action is required - first we need to know who is interested and affected.

Anyone dream-walking through this robbery please make yourselves known.

[Yaz]

Originally Posted by Dodger26

Come on guys and girls we can post comments for ever on this.

Action is required - first we need to know who is interested and affected.

Anyone dream-walking through this robbery please make yourselves known.

I agree Dodger.

I am very disappointed with having to pay almost 51,000 aed extra for each studio we purchased and cannot meet the additional cost at this moment in time.

I have made the following request to Rakeen
" I would ask your management to once again consider the following options:

1) To eliminate the excess area charges, or at least to calculate them at a significantly reduced rate.
2) Not to charge a security deposit in addition to service charges.
3) Not to charge the extortionate connection charges referred to in relation to electricity and water. These services should always be provided by the developer to the buyers, without any additional charges such as "connection charges". The utilities company should be charging RAKEEN, as the the Master Developer of Al Marjan Island, to pay for utilities services.
4) To provide a fair payment plan for the additional charges referred to above, based on estimated rental returns. So, that in effect if the additional final charges were 15,000aed, these should be payable over a nine month period, where expected rental was 20,000 for the unit. This would mean that investors would use all of their rental income to pay any additional amounts.
"

Unfortunately the response I received was unconvincing and inflexible, leaving me, and no doubt many others with hardship and stress.

Please PM me or call me on 0044 7971222038 (UK mobile number) if you'd like to discuss how we can get organised.

Lets organise a BAB Owners Group. Strength in numbers.

[eddy123]

I'm in to form a group to fight against these excessive additional cost and why......

1st, Maintenance fee is to maintain the area and building. Building and appliances are under warranty for at least one year, 10 years for the building usualy. As there are no facilities and infrastructure, so what are the cost of maintaining?

Btw in those fees, is also municipalities fees included, Title deed cost and transfer cost?

I assume that electricity is not connected from the grid as the region is suffering from power shortage. Of course they want the residents to pay for this by probable installing an expensive power generator.

I advise everybody to refuse handover based on these. I will again once go through the contract in detail as it is a bit to easy to throw everything on us. I do believe however we need to seek legal advise in RAK to sort things out.

By the way the best is also to setup an home owner association, as stated per contract and work from there.

Eddy

[eddy123]

Originally Posted by Yaz

Given that our studio was larger than originally stated on the contract, we are also told that we have to pay a further 31,011 for excess area!

.

I believe in Dubai it is not allowed to charge additional when the area is larger than was planned. Many people in Dubai were tricked by the developer in the hope for them to cash in more revenue. Therefore dont accept this. In RAK there are no laws and rules yet set as in Dubai which can work for you but also against you.

Eddy

[Dodger26]

There is nothing in the contract concerning connection charges, only usage charges.

Rakeen must be asked to confirm that permanent power, water and district cooling are connected to the buildings.

[Morrismarina]

Originally Posted by Morrismarina

Did your contract provide for an increase in the puchase price if your unit was built larger than the original size ??

So as nobody has replied I'll assume that the contract does indeed provide for this. So what's everybody moaning about they agreed to it by signing their contract, no use crying about it now. Why earth would you sign a contract where the price can be increased later ??

[Dodger26]

Has anyone taken handover of their unit yet?

Also how do you PM on this website? I dont want to wash my pants in public.

[MMPI]

I asked for some answers from Rakeen today regarding fees and electricity, this is what I received.


Regarding the service bill;

Why are we paying from April 1, 2011 when the property hasn't been

handed over yet and the facilities (pool, beach and more...) are far

from ready.



Bill is based on:



· Service Charge Budget/ moneys which are not consumed will be taken over to next year

· Handover Notification Date according to SPA



The building is 50% occupied already by owners and tenants.



Electricity connection fee sounds more like for the whole building and

not one unit. Is this a temporary connection or are we connected to

the actual FEWA network?



Absolute load of your apartment x AED 1,200 per kw, standard fee in RAK.

It is permanent!

[Yaz]

We have not paid yet. There is a clause in the contract that permits a further charge for extra area. However, given that there have been significant delays, that prices have fallen by at least 30% and that the infrastructure is not complete including gym, swimming pool and other areas we are supposed to be paying our service charges for, I do not think it appropriate or fair to demand these charges.

Nor do I think we should pay one years service charges plus one years worth as a "security deposit".

I also think the connection charges are too high and should have been included in the original price. Of course we should have electricity and water connected to our units when we get handover. Why should we have to pay for this? Especially since its a one off fee, paid on handover.

What would be the charge for electricity or water for change of owner? Thats all we should have to pay? A change of owner name from the developer to our name. The developer should have had all the services connected and once the property is handed over to us, then we would become responsible for the bill.

I believe we should refuse to pay the "connection charges" on these grounds.

[Morrismarina]

RAKEEN are just scammers like most developers in UAE. The country is full of them, any possible excuse whether legal or not to rip you off !!

[eddy123]

Originally Posted by Yaz

I also think the connection charges are too high and should have been included in the original price. Of course we should have electricity and water connected to our units when we get handover. Why should we have to pay for this? Especially since its a one off fee, paid on handover.

These connection charges maybe make sense for a villa but not for an Apartment as the connection to the building is done one time. All infrastructure is in place and part of the construction. Anyway these fees should be paid to Fewa and not to Rakeen, its not their business. However they might want to cash in on this. http://www.fewa.gov.ae/_english/faq/

See also this http://alhamradreams.wordpress.com/

I believe they are making a big mistake with these connection charges and you should get the information from them, not Rakeen. In Dubai with my villa I didn't pay that much, only 2000AED and refundable! Indeed it should be included in the construction as the building is already connected for construction purposes. I wil refuse!

Of course they always have stories that 50% has moved in and are not protesting. Well i believe they didnt even sold 50% of the project.

Eddy

[eddy123]

Originally Posted by MMPI

I[COLOR="Red"]Absolute load of your apartment x AED 1,200 per kw, standard fee in RAK.

COLOR]

Good point to fight back.

You mean they believe the absolute load is 7KW! You know how much is 7KW for a one bedroom! Let them proof the absolute load and show them the calculations! However im not sure if AC's are included in this.

Regards,
Eddy

[kuttika]

Hi All Investors

I notice that not many people are responding. According to my information, most of the people who have moved in are rakia and rakeen staff (hence the 50%). There is no landscaping, proper gates, proper road etc and even if you move in it is going to be a construction site for atleast one year. Connection charges should be refundable as well as the security deposit. Never heard of security deposit being not refundable. The term deposit would itself suggest refundable. How many people can we collect to negotiate.

Has the group been formed yet.

[Dodger26]

To put things into perspective, one 132KW substation could power the entire development including the hotel, office tower and shopping mall.

Charges should be as the agreed contract. Nowhere in the contract I signed does it state connection charges will be paid - only usage charges. If it is standard practice in RAK to pay connection charges then Rakeen should have priced them in as they would have known they were a direct construction cost.

The fact is they probably already have so they can make double out of it. Rakeen should pay these charges - you don't buy a new car then pay extra for the keys.

Anyone else's contract state connection charges are bourne by the purchaser?

[perchedhawk]

Hello all,
the one thing RAKEEN has been naughty on that is not included in the contract is these connection charges as the contract does not mention any connection charges.
The common property does not have to be complete prior to completion of actual property as stated in the contract. This includes swimming pools and landscaping.

If you go and take a look at the development, it does meet the requirements on the standard contract signed.
The contracts had way too much room for the developer and they can further change rules and regs up to one year after completion date.

[Yaz]

Originally Posted by kuttika

Hi All Investors

I notice that not many people are responding. According to my information, most of the people who have moved in are rakia and rakeen staff (hence the 50%). There is no landscaping, proper gates, proper road etc and even if you move in it is going to be a construction site for atleast one year. Connection charges should be refundable as well as the security deposit. Never heard of security deposit being not refundable. The term deposit would itself suggest refundable. How many people can we collect to negotiate.

Has the group been formed yet.

I do not think a group as such is capable of being formed until we start communicating with each other more directly.

I have been in contact with several investors, but not enough to create a viable group. maybe only about 10 people actually bought a unit?
(just joking)

Anyway feel free to email me at ayyaz.mirza@gmail.com and I'll try to get a list together.

Yaz