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Mon 25 May 2020 02:06 PM

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FAM Properties responds to Damac legal claims

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

FAM Properties responds to Damac legal claims

FAM Properties will stop promoting or selling any Damac Properties as a result of the dispute related to the developer's Merano tower 

FAM Properties has responded to claims that Damac Properties is seeking legal action against the Dubai-based online brokerage for advertising 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, and said it had decided to cut ties with the brokerage, claiming it will not accept transactions submitted by anyone at the company. 

But in a statement to Arabian Business, FAM Properties said Damac "has no legal basis for any legal action" against the brokerage.

"Firstly, we would like to point out that there was actually no dispute between us and Damac. It has actually all started when we have received countless inquiries from some of our clients who invested with Damac (and others who already know the company's credibility in the real estate market) who had many inquiries about whether or not buyers were obligated to amend their signed sales contracts/agreements as per Damac’s request to sign an addendum with them and whether or not they are obligated to take handover without snagging/inspecting their properties. 

"These questions were answered in line with the prevalent regulations, which of course always aims to protect the real estate market and preserve its credibility which protects all parties, including investors, developers, brokers, and others. As a result of the large number of questions from our clients, one of our sales personnel sent an email to many of our clients, some of whom circulated it with others..." the statement said.

The email by FAM Properties warns consumers not to accept properties without inspecting them first and urges them to read their agreements regarding handovers at Damac's Merano tower carefully. 

"We know you're getting calls, emails, and whatsapp messages from almost every agent in the market to list your property. However, it's up to you to decide and figure out who is the best company for the job. The most important thing is to know who understands the tower the best and who has the most knowledge and experience in the building. 

"It's time to start thinking about how you will take handover, get property management, and sell, or rent the property. The Handover Team shall contact you to view your unit, once the Handover Notice is served. Before taking handover of your property, you should first consult with one of our professional engineers to snag and inspect your property before accepting it in its condition. Ask me for a sample report for your reference. Do NOT sign on the handover to accept the property in its current condition as their warranty will not cover cosmetic issues and it's a huge hassle to chase them for rectification works.

"Please excuse my direct approach. However, today's property market requires a specialist to guide you throughout the process. I know you are receiving so many calls from different companies offering you their services for rent. Just know that you also have the options of renting it not only as yearly but also short term such as monthly or weekly if it is furnished. Many people are finding it difficult to navigating renting or selling their units. Most agents are either unprofessional or biased. That's why you need someone who knows it inside out. Having sold hundreds of properties over the course of seven strong years, I am confident that I can value to your property portfolio. Even if you have any questions pertaining to payments or financing options, we are here and at your service. Many thanks!" the email said.

In its statement to Arabian Business, FAM Properties added it will not be promoting or selling any Damac Properties as a result of the dispute. 

"Even though we do NOT condone such emails, we don’t understand the reason for Damac's feeling of being at risk or discomfort from this type of e-mail, which only refers to the necessity of the investor being careful before signing on the handover documents of the unit. That is, unless there are other elements that we are unaware of. In the end, we in Dubai, are all accustomed to the freedom in expressing our professional opinions as long as they are within the laws and in line with the regulations regardless of whether or not it is always pleasing.

"In conclusion, and based on our ongoing and in-depth studies of the market, we note that it is actually FAM Properties who has decided not to directly sell Damac products and not the other way around. In fact, in 12 years of the life of the company we have rarely promoted or sold any real estate direct from Damac, all our focus was and still with Emaar, Meraas and Dubai Holdings and as a result we have earned many top ranking awards every single year," it said.

It added FAM Properties has reported this incident to the Real Estate Regulatory Authority (RERA), the regulatory arm of the Dubai Land Department (DLD).

"It is with full confidence that we believe they will resolve and deal with these matters in a fair, timely, and amicable manner. In addition, all of our rentals, property management and resale services remain fully active across the entire spectrum of all Dubai projects without any restrictions or exceptions to any project or developer and we will continue providing the utmost support and advice to all our clients and investors for which we have always been known for.

"We also assure you that according to Dubai law, developers cannot in any way restrict or prevent any registered real estate brokerage from providing its services to landlords, buyers, and tenants of residential or commercial units that are no longer under the ownership of the developer

"Furthermore, investors should be reassured that they may continue to enjoy the complete freedom in choosing their preferred real estate partner without any interference from the developer in any way whatsoever," the statement said. 

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