First Qatar Apartments on Pearl Rip Off

Does in your contract it mentions all those costs will be paid by them?If No, you will have to pay that.Those are hidden charges.You should have been careful while signing the contract.

Don't worry. This is an Islamic country. People cannot be as bad as you describe them. It's "haram". Or??

According to First Qatar a +QR2Mn apartment gets you a unit in a building that is not connected to any essential services. If you would like your building to be connected to water, that is extra, power, extra, would you like drainage as well, hmm extra, sewage - extra,

What a joke. I'd be laughing except that I also have an apartment there and it is not a joke, its the reality.

That's more than 10% of the appartment cost. But what about the monthly charges?

===================================== http://www.qatarlivi...

MD is right.

This is a wholesome Islamic country. Companies don't set out to deceive their customers and steal money through crafty contract loopholes.

As if the government of an Islamic country would allow companies like First Qatar to fleece customers. After all, this is a country that has fixed the price of rice for Ramadan, and is committed to protecting human rights.

Ha.

KH, actually it is 6,3%, not more than 10..:):)

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"What lies behind us and what lies before us are small compared to what lies within us."
Oliver Wendell Holmes

IF you could sell your apartment, i would only be worth 40% of what you paid for it,,,,and its rental price would be less than 10,000 QR now,,,,
RUN!

Terrible....guys, please fight for your rights. Sounds like the developer is trying to flee the project themselves, with all these charges put forward to the owners. Be united and do not pay a cent until this is sorted out. This sound like the perfect purchase made in hell to me.

*Bunga*

If the contract dosen't state this, you can for sure go to court..take the help of a good a powerful lawyer but make sure the lawyer dosen't end up charging you more than what you have to pay the firm. :)

all the best.

~noms~
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"Before God we are all equally wise ' and equally foolish" - Albert Einstein

It should be no surprise that a combination of unscrupulous developers, greedy expatriates who thought Doha would be the next Dubai in terms of real estate profits, and real estate laws which have not been in place long enough to remove all the loopholes gives the opportunity for developers to exploit the unsuspecting and the naïve.

this is insane.When did you receive the mail camelme i have not received anything yet.

I wish the pearl would update some of the sign boards.

Some of them are so old and faded that it makes the project look a bit dodgy. The one at sports round-about is particularly awful.

I hope not a single person with First Qatar gives in to what is clearly abuse and extortion by the developer. Seriously who would ever expect essential services not to be included in the purchase price? The true colors of First Qatar are now shown and they are only hurting themselves. They can contuinue to be stubborn on this issue but if they do continue on this path, it will only lead to their own demise. Does not say much for the mentality and credibility of their management to freeze up on the very people who trusted them. This issue has surely already cost them a fortune in lost business. How can a customer work with any company who has committed such a gross disgrace and negligence towards its customers? FQ management a lesson in ignorance. Sorry to the customers who have been now forced to reckon with this marriage to a shady developer. They are shady not only for what they are doing, but also they way they are managing this crisis for their customers. Any reputable company would have done much more in communicating with clientele. Organized a meeting for all investors where two sides can voice themsleves with the GM present. It would not be a stretch that FQ has taken the approach of basically ignoring their customers. Please everyone directly involved, keep this thread and the other threads updated with developments as they occur.

if you affort to bought then you can affort also for all utilities & maintenance cost...no body tobe blamed.

Ok, I've been trying to edit my post above for the past 7 tries but apparently, maybe the mods think I should be banned.

"1 purchaser paying extra QR100k or more multiplied by how many purchasers - does (instead of "doesn't" in the above post) that sound fair to you?

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The Cookie Monster said it.

Eaglemmanuel - - I'm sure that FQ did not set out to do this in the beginning, but the fact is that they are doing it now and it is wrong.

The unit owners should not have to pay for their inexperience or miscalculations. If they misbudgeted that is not the issue of the customer. At apartments costing from QR1.8M - up to QR3Mn you should not be paying for their mistakes. We bought apartments that were connected to essential services, not empty shells.

FQ have about 200 apartments in their building.

200 apartments at QR126,000 each in additional fees = QR25,200,000. A nice tidy sum.

I can only assume that FQ are under some financial trouble, they don't have access to money as lending from the banks has dried up and so they are turning to the owners to finance the project's completion.

I received the charges letter only today ...via e-mail. Here is a snake in the grass as what FQ is stating is not in the contract, what they are not realising is that they just making it easier for their customers to cancel the contract.

WHERE IN THE CONTRACT DOES IT STATE THAT WE HAVE TO PAY ANY OF THESE CHARGES BEFORE HANDOVER?

Dear Unit Owner,

"Further to our previous correspondence dated [March 22nd, 2009], regarding the delivery status relating to First Qatar tower, La Riviera, The Pearl-Qatar, we hereby

invite you for the snagging phase of your unit prior to the delivery date anticipated November 2009.

Kindly note that, in the event that the Master Developer, the United Development Company, issues a Completion Certificate prior to, during, or following the revised

Anticipated Completion Date, we will contact you to arrange the handover of your property.

In addition, we refer to article 9.3 of the Single Sale and Purchase Agreement (SPA) and would like to inform you of the service charges: maximum of QR 150 Qatari

Riyals) per square metre of floor area of the Unit per annum.

Moreover, we refer to article 9.5 of the Single Sale and Purchase Agreement (SPA) and would like to notify you that you shall be responsible for paying the utilities

connection charges as illustrated below:

With reference to the connection fees of your apartment unit at “La Riviera Tower” The Pearl Qatar, the end user will pay a onetime fee in the beginning before the delivery

of the unit. The estimated connection costs are as shown below:

· Electrical power cost QR 52.88 per m2

· Cooling system cost QR 318.86 per m2

· Telecommunications cost QR 89.49 per m2

· Water supply cost QR 64.92 per m2

· Drainage system cost QR 51.93 per m2

· Solid waste treatment system cost QR 9.95 per m2

The total estimated cost of the connection fees, per square meter, is QR 588.03 only. Please note that this is a onetime payment. Any variation of the estimated fees will be

adjusted on a later stage.

Furthermore, should you have a concern in respect of payments to be made to First Qatar in anticipation of the payment due to be paid on Anticipated Completion

Date, Connection Fees, or Service Charges; we welcome you to visit our office during the upcoming 30 days from today to settle your payments accordingly to

further enhance the delivery process.

Please do not hesitate in contacting us should you have any questions."

choke on that Pearl!

Delphy you don't have to pay a send until handover

Well, finally we have to pay!!!, one of my friend who bough 1 bed room apartment from sabban tower they just paid around 20.000 somethig... for connection fees, why do we have to pay more,,?

Delphy

Can you please ask your friend if he has the fees he paid with Sabban in writing? We can really use this information to show FQ that they are being insane with the fees.

Also, game not over yet, we are not paying a sent untill they can justify why they are charging double of other developers. UDC owners only had to pay 15 000.00. For my apartment it will be alomost 150 000.00. You can't even begin to compare!!

and all of you guys should get together and hire the best lawyer in Arabia,,,go to Egypt and get the best!

Shocking, truly shocking. What an advertisment to invest in Qatar.....

This is enough to end all thoughts I had of buying! Ouch!

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A wise young crackpot knows no fear - Ian Dury.

FQ are trying to pick off the owners one by one and lie and manipulate us one by one. What we need to do is go into their office together as a large group.

I'm sick of getting treated like crap by these people. I'm sick of them making excuses for not being open about these fees and I'm sick of them just changing the contract terms and meanings to suit whatever they like.

I want honest answers to our questions from them and I want to hear them say it to us in a group - the bigger the better.

We've discussed about whether FQ have a cash flow issue, but I came across their financial statements on the internet the other day which sheds some light on this. As a Kuwaiti company they have posted an investors report for shareholders on the web.

http://www.globalinv...

This was the result for FQ for the first 3mths of this year Jan 2009 - Mar 2009.

Total revenue = KD-1,742,418 or -QR22,000,000)

Total Net Profit = KD -2,359,910 or -QR29,891,000)

Highlights in the review point out that FQ lost out significantly on the stock market and had to get a loan to finish the "Porto" project. Not much of a highlight.

It also notes that there is little hope for income outside of rental income for 2009, which obviously they would have been getting in the first 3 mths of the year which saw them haemorrhaging money. Given we're now in the third quarter if they did nothing to address this they could have by now lost between KD-6Mn (QR76,000,000) to 7Mn (QR88,700,000).

I'm taking a punt, but I would say that their total assets would equate to the land that they have on the Pearl, which they will not be able to liquidate for cash, and a few other investments.

They obviously have a cash flow crisis as they leveraged the money from this development to finance other things and they lost. This is where the customers come in.

I'd love to get my money back come Nov. 1 when the building is not finished, but how would they pay me?

Dune and Camelme check your PM

Readers don't take our word for it, read the contract section 9 that FQ refer to yourself and compare with FQ's statement. It's very short (3 pages only and half English and half Arabic) and it's online for all to view.

http://www.thepearlc...

Please compare this official contract with what FQ are saying about us having to pay for connections to the "whole building under section 9".

FQ are talking about the owners paying fees for the "whole building" as per section 9, but the words "building" and "whole building" are not used anywhere in this section. There is nothing either about FQ paying these fees and then us paying them back.

I want to be honest and open, even if FQ are not. Please read it for yourself and form your own opinion based on facts.

The section 9.5 says that fees are payable "for the unit from the completion date". Given that you need to connect essential services to the building before the unit can be deemed as completed, this cost would occur "before the completion date" and thus it is not our problem. We do not pay fees that incur before our apartments are handed over, this is the responsibility of the developer.

FQ please stop changing the contract terms to suit yourselves. Legally you cannot do this, but I guess it is yet another sign of your business ethics and principles.

Guys time is running out let's meet lets say tomorrow night. Camelme and Dune I left my phone nbrs on your PM call me asap so we can do something about that mess all other PM me your contact number or to any other.
As a organised group it will be better, before too many people pay...

Dune, camelme, pinelands and all FQ Costumer :))

I meet my friends last night who bough 1 bed room apartment around 120 m2 with UDC and they moved in 2 months ago and they paid for the connection fees only 12.000 Qat. i told them about FQ story and they were surprise and they said something wrong with FQ, they told me how come we pay only 12.000 Qat to UDC for connection fees and FQ charge more?

and i asked them to send to my e-mail the papers for connection fees, i hope they will send ASAP.

Guys, let us go together to FQ office ...

HUH.. what a life...

My sympathies with all of u caught up in this terrible mess but i feel u really made a bad investment choice in the first place....and these developers are now rubbing salt into ur wounds somehow the bad media attention this would generate would force some governmental intervention...hopefully this is what u should be tryin to accomplish and a message that such bad tactics do not portray a good image of such projects to the outside world.
my best wishes to you all.

With all the obvious manipulation of its clients, First Qatar has dug themselves in a hole that clearly will hurt them financially for a long time to come and quite possibly as long as their business exists in Qatar.
Reputation is the key to successful business in Qatar and the reputation of FirstQatar is now in the abyss of a dumpster.
One fact they cannot explain away is that customers were
mislead, misinformed and not informed of what exactly the connection charges would be. Everyone assumed charges would be a reasonable figure and not the extortionate amounts now demanded. With that FirstQatar has thrown its credibility and trust out the window.
What is most amazing is the inability and sheer ignorance of First Qatar management to recognize this and
just pass it off as something that will fade away with time. How can anyone deal with a company that takes this
selfish and unprofessional approach? I truly believe this episode has now cost them more in lost sales, lost trust, loss of credibility for the future of its projects than they will gain from these exhorbitant fees wanted now. Incredibly stupid and short-sighted.
Placing short-term gain over trust, credibility and reputation is undoubtedly a recipe for failure and the fault of none other than the powers that be who manage First Qatar.
Anyone that does their homework will steer so far away not only from dealing with First Qatar, but the project as a whole for fear of future manipulation. So they have not only taken themselves down, but the entire group of unit owners as well. My condolences to unit owners who are now forced to reckon with this marriage to FQ. Good Luck.

camelme & hotandsticky,

I spoke with my bank 2 days ago and they were shocked what FQ have done to their costumer.The Land and Estico didn't charge their costumer that much.

We suffer but 1st Qatar will suffer more from their finacial crisis and the 2nd batch of their project will not succesful, let us spread the news around the world... to let people know what FQ have done to us :))

Contractors are mulling legal action against district cooling developer Tabreed for non-payment as the Dubai-listed firm grapples with liquidity issues due to the construction slowdown.

Tabreed, in which Abu Dhabi's state-run investment firm Mubadala has a stake, has withheld payments to some of its leading contractors, seeking discounts for some completed projects.

Some leading contractors working for Tabreed said that the firm has not paid them since the financial crisis began and has even written to them that future payments will be contingent on reaching agreements on the discounts.

"They are looking for backdated discounts on projects built and handed over. This is unprecedented," said an executive of an Abu Dhabi-based contracting firm asking not to be named due to confidentiality reasons.

"We are ready to renegotiate pricing on ongoing or future projects but Tabreed is not supportive. It is going to a dead end and the solution now is legal recourse," he said, adding the firm is owed over 100 million dirhams.

Tabreed, the largest district cooling firm in the Middle East and which is also called National Central Cooling Co., is currently undergoing restructuring after it replaced its senior management.

A senior manager of another contracting firm said he was willing to offer discounts subject to a clear payment plan. "But Tabreed is non-committal and their approach seems threatening," he said, adding the discounts sought range from 10 to over 50 million dirhams.

Tabreed's CEO Sujit Parhar says that the company faced liquidity issues and weaker than expected profitability in the current economic climate and is working towards a solution.

"With 17 plants under construction, we are constantly in discussions with our contractors with regards to changes in the market conditions pertaining to construction and equipment costs," he said in a statement to news agency Reuters.

"While we cannot comment on the terms of individual contractor relationships, I can assure you that Tabreed is paying and will continue to pay its contractors," he said.

Tabreed, the largest district cooling firm in the Middle East has 34 plants across the UAE with total capacity of 440,000 tonnes of refrigeration and plans to commission 16 plants by end of this year, Parhar said in July.

Tabreed secured about 1.1 billion dirhams bank financing this year despite tight credit markets.

Tabreed had planned capacity expansion last year before the crisis as the construction boom saw several mega projects including the Dubai metro taking shape in the UAE.

But with the financial downturn, construction projects were stalled or delayed and commodity prices fell forcing Tabreed to rework payments.

"It seems they are readjusting contracting prices because of falling commodity prices," said an Abu Dhabi-based analyst that tracks Tabreed.

"Given the current market situation, contractors have lost their negotiating powers and definitely are under pressure. The choice is to renegotiate or take legal action," he said.

Last month, Standard and Poor's lowered its long-term corporate credit rating on Tabreed to `BB-` from `BB' due to liquidity concerns.

http://business.makt...

Has anyone seen the building lately? Are we still going to receive the keys to our apartments next month?
I really don't think so, but the problem is they don't even know when they are going to deliver the apartments. I went to their office on D-Ring road, and guess what??they blame UDC for not scheduling an appointment to look at the building to decide if its done or not. Come on!! construction is not done yet. What are they talking about??!!

FQ are questionable at best. According to the contract they need to give us 30 days written notice of handover and this has not come.

I doubt UDC will allow them to hand over the apartments as the roads to and from those units appear to be still full of construction materials and blocked off. If you look at the Pearl, there are loads of places that are finished up to where the canal is in the middle and they are not yet occupied nor are you able to drive a car to them and then after the canal FQ's building is the only one that looks remotely finished among all the continued construction. I doubt UDC will let them had over in that state or even if UDC are ready to hand over.

The problem is with FQ they fabricate the truth so often it is really hard to believe anything they say anymore. Nothing is their fault and the truth is always a murcky shade of black. I've lost faith in them totally.

My contract states that handover will be in November 2009. However, I talked to a few people who signed in late 2007 and they said their contracts state that handover was supposed to be in May 2009. Does this mean FQ only has 7 months left (meaning they HAVE to handover before May 2010, otherwise people can cancel their contracts and get their money back??)
I haven't seen those old contracts but it seems that people were given diffeent dates based on when they purchased their apartments.

Our contract handover date was Nov. 1, 2008 and we are drifting to close to 12mths beyond this so pay no attention to what the handover date says in the contract or the terms relating to pulling out and getting your money back.

You will find that even if you wanted to get out of the contract, you will not get back your money without a lengthy, and costly, legal battle. The terms of the contract are not respected or honoured.

Where is our notice that the building will be handed over, or extended as per the contract terms and with the official handover due in days.... no where to be seen.

Has anyone received a new letter from First Qatar??
It seems that they are willing to pay half the connection costs (50%) only if we agree to pay off the whole apartment cost in November without handing over the keys.
They are really striving for cash !! They really want the remaining amount as soon as possible, otherwise why would they drop 50% of the connection costs???

For those of you who bought apartments from FQ, are you going to trust them and pay all the remaining amount today even though the new handover date is unknown??

I am not sure what you mean by skyrockets !
the drainage connection cost is a one time deal. We won't be paying anything for drainage after this.
I am just tired of waiting. the problem is not only first qatar is late, all other developers have finished construction costs (Sabban, The Land ...etc) but nobody knows when the handover date is !!!!

After I see what you're facing guys, I feel it's better that my apartment is not finished...here's another example of what we buyers at Pearl Project suffering ?!??

http://www.qatarlivi...

if you think FQ is a rip off, wait till you meet with (ERA GULF REALESTATE)...at least your building is kinda finished...

And I really need to say this...if it happened that you're an investor and checking out on Qatarliving if buying an apartment in the Pearl is a good investment...DON'TTTTTTTTTTTTTTTT....I say it again...DON'TTTTTTTTTTTTTTTTTTTTTT....I already warned you...take it now and thank me later...

Don't know where all this going ? but definitely we're going to hell...

With all this. I think the comments that First Qatar needs money are spot on.

Remember most of these so called developers never actually had enough money to actually fully build and finish their towers. They were always relying on the staged payments from purchasers to do the works.

In the good times it was fine as money poured in, but now people are not buying off plan (and never will in the GCC again EVER) the companies are now faced with HUGE shortfalls in cash flow.

There are 2 towers that are abandoned in phase one of Porto Arabia. That is a prime example of a developer running out of cash.

Anyway I would like to know what the current situation is. Also has ANYONE except abocayenne actually rented their properties out yet ?

If you cannot afford the insurance, you can’t afford the car.

Well hers keeping up with the Jones, I thought you have to be a drug runner to buy here…

Rules are a guideline for intelligent people, but they must be adhered to by idiots.

I don't those who brought at the right time will make decent returns.

I think 10K is fair for a 1 bed. Rents on the Pearl can only really go one way as more towers come on line.

Prices for the Zig Zag have continued to fall, I know it's a bit like comparing apples with oranges but the reason, I think they have fallen is BOTH tower are ready and that's at least 800 flats.

Once more towers in the Pearl come online the "exclusivity" will fall and like everything in life prices will fall to a place where it meets demand.

I know people have claimed that some towers will be left empty until prices go back up but that in it's self can't force rents up.

As for giving First Qatar more money, what guarantee do you have that it will be finished in 78 months or worse they take more money and abandon the project in the second half of the year.

I want to know what is happening to the 2 towers that seem to be abandoned are they the first qatar towers ?

Aviduser, the abandoned towers you are talking about (the two towers on the right side once you enter Porto Arabia) used to be for a Kuwaiti investor/developer from the "Al-Bahbahani" family. For those who do not know, Al-Bahbahani is a well known "business" family in Kuwait, just like Alfardan here in Qatar. Anyway, I know for sure UDC took over the building from this Kuwaiti developer and will finish it. They are in the process of changing the contracts with the owners right now, and from what I heard they should continue working on the building in a couple of months once they finish the logistics.
However, if you see First Qatar Tower from outside, you would think its complete, because it does look finished actually. So, I don't think they will abandon the project at this stage. I haven't been inside the building since last May. I would like to hear from other owners if they have been there lately or have done the snagging process yet???