Rama Homes Limited, a real estate company swindling potential home owners out of their hard earned money has been criticized for paying their sales agents peanuts while making millions out of the various projects.
According to an insider source who spoke to Kahawa Tungu on condition of anonymity, the company has been using clients’ monies to fund other projects. Another Facebook user said that the company is using the clients advance repayment installments to develop the overpriced properties in a falling property market which they hope will bounce back by the time the flats are ready.
The social media user further claims that in the event that the property market does not recover, unsuspecting customers will owe the developer more than the property is worth yet they will still be obliged to continue with the repayment program.
“The title deed does not transfer to you until you have fully repaid the purchase price. The developer may utilize the title deeds as security for further advances from a financial institution charged on your reserved property yet you would not have any control. The developer could go bust in the interim and you would have no recourse to take possession of your property,” the social media user advises.
Kahawa Tungu has also heard that the Gateway Park, Deira Heights developer not only swindles prospective home buyers but hires inexperienced sales people on a two month contract.
The sales people, we have learnt are always frustrated out of their 1 per cent commission and a meagre Sh15,000 monthly salary.
Apparently, managers penalize the employees for the most ludicrous reasons prompting many to quit.
It is also true that Rama Homes executives demand for their employees to always file nil returns and deduct but do not remit PAYE for their staffers who are mostly young women.
The source also intimated to Kahawa Tungu that the company always changes house plans mid-construction. They advise clients to always confirm the size of their houses before making payments.
They give an example of the Euromax Heights in South B where parking space was a major issue.
Word also has it that the affluent executives overwork the employees who are sometimes forced to appear in promotion videos without pay.
The already overworked staffers do not get their overtime pay even when they work on holidays.
For instance, the source said, it was business as usual at the Rama Homes offices on Jamhuri day in 2017.
Some have said that the company’s projects are just another pyramid scheme, stealing from Kenyans.
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