E-mail Article
Printer Friendly
Share Article
Tenants face eviction over landlord dispute
Thirty eight families will find out later on Sunday if they are to be evicted from their homes in Discovery Gardens after paying a year’s rent upfront to a brokerage firm which turned out not to be the landlord.
The tenants of building 219 in Moghul cluster say they are scared to leave their homes to go to work in case the locks are changed and they cannot get back in.
One month after paying AED45,000 for a one-bedroom flat to Corporate Business Solutions (CBS) they discovered the building is actually owned by Meraas Real Estate.
Meraas has filed a case against CBS, but the firm is believed to have closed down and the owner disappeared.
Rent Committee General Secretary Mohammad Ahmad Al Shaikh told Arabian Business on Sunday the tenants would have to approach CBS to claim the money back.
“They rented from someone who did not own the property. If they want to continue living there they can deal with Meraas and will have to file a case against CBS to get their money back,” he said.
One tenant said: “I can’t concentrate at work anymore. It’s always on my mind what’s going to happen. There’s no peace. I feel horrible.”
“We’ve got all the possible proof that we’ve gone through the correct process. We’ve done nothing wrong, yet it’s most likely that we’ll be evicted,” she added.
Her husband said: “We’re scared at work that someone is going to come and change the locks so we can’t get back in.”
Dubai Rent Committee is set to deliver its final verdict on Sunday. Two earlier hearings were held on October 4 and 18.
The tenants say they rented the flats through property agents Palma Real Estate, Imperial Real Estate and Homeland, all registered with Dubai Real Estate Regulatory Authority (RERA).
Palma has since offered to pay tenants back their AED2,250 commission if they sign a letter absolving the firm of any liability and preventing any “action, transactions or decisions done or taken during dealings with CBS.”
Sarah Derbas, Palma marketing manager, told Arabian Business: “To be honest, that’s all we can do. We can’t offer them anything else.
“We told the Land Department and RERA about it and we need them as an authority to deal with this. We were tricked as well.”
Tenants said they managed to register their contracts with RERA and Dubai Electricity and Water Authority (DEWA) and at no point was the authenticity of the contract questioned.
“For them it’s an apartment, but for us it’s a home,” another tenant told AB.
The father who has a three-month-old baby son said: “There’s no one here who can afford that. We are salaried people who don’t have that kind of money to move about Dubai.
“If there was one alarm raised we would have not gone through with this, but there never was. As far as we were concerned CBS were the landlords.
“What is the process to follow because we thought we were doing the right thing?”
A spokesperson for RERA told Emirates Business: "Tenants mostly use rental companies to rent units and they should ensure that the company is licenced and handles rental brokerage.
"Before signing the cheque, a tenant should ask for title deed and must ask the owner to register the contract with the agency.”
Arabian Business tried to call CBS, but the office number was constantly engaged and the mobile number of owner Alejandra was out of service.
Quick Links(Residental)
Filter by address:
Comments 1-10 of 10
Posted by sikandar, dubai, uae on 29 October 2009 at 17:11 UAE time
The tenant should go to the Rulers Office and lodge a complaint. There has to be consumer protection here. How and why are these agents allowed to operate???. Why is there no control??
Posted by Hamid on 29 October 2009 at 02:33 UAE time
As far as I know RERA doesn't verify ownership when registering the lease, and is not able to either. Because the landlord may have purchased the property but have not registered it with RERA yet.
I think the best RERA can do is to make sure the lease is not leased twice, and this is only possible if both tenant try to register their leases.
The best way is for the agent to see the original contract and passport copy/TL of the owner and don't rely only on the copies. Copies are fine for beginning the marketing of the property, but not sufficient signing a leas. Also, the agent must verify the ownership with developer and/or REAR, depending if they have got a copy of first page of contract or the Title of the property for verification.
RERA can defiantly improve, but for this case the agent is responsible.
Posted by The Consultant, Dubai, UAE on 27 October 2009 at 09:04 UAE time
Perhaps the answer is to introduce a standard, compulsory professional indemnity insurance policy which is a pre-requisite for RERA-registered agents.
Potential tenants and buyers need reassurance that they will be protected if something goes wrong. Agents likewise need to be confident that they do not face ruin if they are caught in the middle of a cleverly organised fraud through no fault of their own.
Posted by Cash Flow Messiah on 27 October 2009 at 01:42 UAE time
Pam - You're right about keys being available with security personnel usually, but I wouldnt agree with you on the same for 38 apartments keys altogether!
Let's all at least admit that there may be something more than just a broker/agent scam here. I'm not trying to defend any broker/agent, just trying to establish some plausible cause that may require future notice by general public like us.
In my opinion, AJ put the example quite right, in his last comment. This event must put all of us on guard with not just agents but landlords alike. Agents take a certain fee for whatever job they do (or not). Ultimately it is our money at stake v/s entities that we cant fight, right? How far do we want to push RERA or authorities alike, to protect us against issues that we end up hastily finalizing? RERA is an organization that is working hard on helping the market mature. We must give them time.
As far as the agents are concerned - sharks or not, the tenants are most likely not gonna be able to get anything out of them, besides whats already been offered. I'm actually not surprised that people prefer to focus more on them rather than who they should on, at this point. In my opinion, thats not being realistic.
AB, please bring some facts out quickly.
Posted by A M Rawof on 26 October 2009 at 16:56 UAE time
Your article says “The tenants say they rented the flats through property agents Palma Real Estate, Imperial Real Estate and Homeland, all registered with Dubai Real Estate Regulatory Authority (RERA).
Palma has since offered to pay tenants back their AED2,250 commission if they sign a letter absolving the firm of any liability and preventing any “action, transactions or decisions done or taken during dealings with CBS.””
You may not debate, responsibility of real estate agents or brokers, but if provide option either total ban or liability of tenant’s payment, most agents and brokers will accept their liability., Many of the tenants are aware, mostly landlords are renting out their properties thru their own real estate firm some cases even charging 5% commission from the tenants. It is unusual that, any non property owning broker or agent will show their principal or landlord to the tenant, he/she know, tenants will prefer direct deal.
Posted by Simon, Dubai, Dubai on 26 October 2009 at 15:59 UAE time
Maybe Arabian Business should put up a poll on his site asking people their opinions on properly worded questions regarding the tenants plight..upon which, after 2 days of polling...peoples opinions can be forwarded onto RERA.
Or maybe AB can place a petition on its site so contributers can add their support to the tenants plight and after a closing date present the petition in support of the tenants to RERA or other bodies.
Something has to be organised to show support for the tenants and the authorities should be aware that there is great resentment in cases such as these that these tenants are going through.
If this case does not go in favour of the tenants then the Dubai property market is in real trouble...the tenants should be protected not left holding the problem!
Posted by Iqbal, Dubai, UAE on 26 October 2009 at 11:55 UAE time
On what grounds & basis did RERA register a lease contract if the owners were not the same as sated in the lease contract?? They have all the information and they did not detect? The authorites must investigate this lapse by REARA to ensure that there was no hanky panky between some one in RERA and CBS?
Even the R E Agents are at fault. How come they marketed these flats without verifying the ownership? This is their prime responsibility.
Posted by His Excellency Dr Paul, Dubai, UAE on 26 October 2009 at 11:53 UAE time
The message this sends out is that in Dubai it does not matter how careful you are to check ownership and lease paperwork and deal with RERA registered agents - you still face being ripped off by dodgy dealers who'll grab your money and do a bunk. And the authorities will do nothing to help you.
Is this really the message Dubai wants to send to the world, especially at a time like this? That you take your life in your hands if you come here?
Travelling overseas now, the reputation of Dubai has been dragged through the dirt. Everyone you meet has a story about people people ripped off and losing money to some scam in Dubai. Dubai desperately needs to take firm action to restore some faith in the system being fair and protective of the little guy, or it will increasingly become a magnet for the worst kind of unscrupulous people rather than the decent, honest people it should be trying to attract.
A line needs to be drawn in the sand that fraudsters won't be tolerated and innocent people will be protected.
Posted by RAMA, DEIRA, DUBAI on 26 October 2009 at 11:40 UAE time
THE IDEAL SITUATION WOULD BE TO HAVE A ONLINE MARKET PLACE HOSTED BY A REGULATORY AGENCY DIRECTLY BY THE OWNER AND CUSTOMER, WHICH WOULD BRING IN MORE TRANSPARENCY, CHEAPER PRICES. THE EXPLOITATION AND ATTROCITIES BY THE SO CALLED MIDDLE MEN BURDENING WITH EXCESS COMMISION AND SINGLE CHEQUE FORMAT SHOULD SEE THE EXIT TO MAKE UAE A BETTER PLACE FOR LIVING
Posted by Nacheez, Dubai, UAE on 26 October 2009 at 10:17 UAE time
RERA should own up to the responsibility of being the regulator of the market. 38 families have been affected although they dealt with RERA registered agents. What else could one ask for?. RERA should have an insurance cover for such cases and it definitely has the muscle to pursue the tricksters. Businesses and families will lose confidence in Brand Dubai, if the authorities do not step in. This is the time to demonstrate leadership!