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Sun 10 May 2020 06:17 PM

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Damac to seek legal action against FAM Properties

Dispute began when the developer received complaints from Damac clients about unsolicited e-mails sent to them by FAM Properties

Damac to seek legal action against FAM Properties

The developer has also cut ties with all employees and agents of FAM Properties, stating that it has cancelled all current and future promotions with the brokerage.

Damac Properties is seeking legal action against Dubai-based online brokerage FAM Properties after it claimed the portal advertised its services to clients under the Damac brand.

The dispute began when the developer received complaints from clients about e-mails sent to them by FAM Properties.

"During the past weeks, we have received several complaints from our clients about unsolicited e-mails sent to them by a real estate brokerage company called FAM Properties. It is understood that FAM has approached Damac clients urging them to engage contractually for services related to handover of their Damac units and other services, using falsified information," Damac said in an email to its clients that was seen by Arabian Business

"At Damac Group, we hereby assure our valued clients that there is no relation between Damac and FAM Properties. Neither do we endorse any information or statements issued by them. Damac is in the process of initiating legal measures against FAM Properties to preserve our rights as a company and your rights as clients," the email continued.

The developer has also cut ties with all employees and agents of FAM Properties, stating that it has cancelled all current and future promotions with the brokerage, and insisting it will not accept transactions submitted by anyone at the company. 

Moreover, it advised clients to "exercise caution in dealing with companies of this nature" and to obtain information only from official sources, including authorised employees of Damac Group.

Arabian Business has contacted Damac and FAM Properties for a comment.

There will be fines 

The Real Estate Regulatory Agency (RERA) today announced it has fined a Dubai real estate company AED50,000 for breaking advertising laws.

Action against the unnamed company was taken after it was found to have violated the laws “related to the escrow account and permits of real estate advertisements”.

The company committed a series of violations related to the promotion and advertising of real estate projects not registered under its name. This included issuing investment contracts to customers of those projects, receiving amounts outside the escrow account, and launching a promotional campaign without obtaining the necessary permits from the authorities.

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