Developers in Ajman will not be allowed to arbitrarily cancel any sales and purchase agreements (SPAs) and will have to seek permission from the Ajman Real Estate Regulatory Agency (Arra), its chief told Emirates Business.

"No developer is authorised to cancel any agreement unless they get approval from us. We are monitoring the situation and are allowing investors time to fulfil their commitments," said Omar Al Barguthi, Director-General, Arra.

According to SPAs signed previously between the developer and the investor, the former has the right to forfeit the property of the latter if he/she fails to meet payment deadlines.
However, no clear information is available on how many properties have been forfeited by developers as of yet. Besides, the regulatory authority has taken over post-dated cheques (PDCs) from some of the developers whose projects have not yet reached the desired level of construction.

Ajman realty regulator cracks the whip