How Dubai Tenants can Avoid Falling Prey to 'Fraud' Property Firms
Dubai’s Real Estate Regulatory Agency (RERA) has received a number of complaints against companies who are involved in sub-letting properties despite their trade license not allowing them to conduct such an activity. The agency has also advised victims of the sub-letting scams to contact the Dubai Police and the rental dispute settlement committee along with the Dubai Economic Department (DED).
Tenants should always see the original title deed; try signing the lease agreement in presence of the landlord and if that isn’t possible check the authorized person does have a valid power of attorney, legalised by the Dubai Notary Public. Tenants should also seek a document from the developer or the owners association confirming all service charges have been paid up to date by the landlord so they are not barred from using any facilities in the building.
Rera says, as per the complaints received from investors against some of the companies that violate the activities they were licensed to conduct by the DED, the complaints have been categorized into three types: the first is renting through companies that are not licensed to conduct real estate activities; the second type is illegally renting a unit without having an approval to do so and finally renting from real estate companies using ‘counterfeit’ cheques.
Rera is requesting people to verify the following information before renting an apartment:
* Check the trade licence of the real estate company
* Check its approved activities according to its license from DED
* Check registration number and the brokers’ license from Rera.
* All the above information can be found on DLD’s website: www.dubailand.gov.ae
As reported earlier a company has to furnish a guarantee of Dh5 million to DED if they wish to offer property leasing and management service.
In case of any disputes, the rent committee can liquidate this guarantee to settle claims.
Renters should also ensure that they issue cheques only in the name of real estate management companies and get the contract registered on the Ejari so to receive a certificate assuring its official registration.