Dubai resident left bemused by property agent’s demands

Tenant is wary of a Dubai real estate agent that is demanding double commission for a new rental deal. Mario Volpi advises.

Dubai Marina. Mario Volpi advises a new Dubai resident on how to deal with a problem involving a property agent. Randi Sokoloff for The National

I am new to Dubai and last week agreed to rent an apartment from an agent who told me that the rent would be Dh85,000 in three cheques. He then sent me over the contract to have a look at before signing and for the first time he revealed that the rent will actually be Dh80,000 and on top of the 5 per cent commission they want another Dh5,000 for service fees. The contract will be between me and the landlord and the cheques will be issued to the landlord as well. The tricky thing is that the agent is unwilling to give me any contacts for the landlord, and they are demanding I go to their office for the signing procedure. I will then give them the money (unfortunately the first payment will be cash rather than cheque) and they said they will then give me back the contract (within the day or the next day) with the landlord’s signature and the keys. Should I trust them? I feel that now that I have seen the contract, they have realised I might inform the landlord about this extra commission but all I really want is to set in place a proper relationship with the landlord, and of course I want the landlord’s contact details. I am also bothered that when I query anything the agent says things such as “we see that you are afraid; we want you to feel comfortable, and since you don’t feel [that way], we can give you the deposit back”. Again this is not what I want. I just want to feel secure for the next year knowing my landlord. So is what they are doing legal? AA, Dubai

The important thing to understand here is that you are dealing with a Rera-registered agent, so if there was ever any need to make a complaint you can do so with confidence. Before signing any contract, I would question whether this extra Dh5,000 is a one off charge or is it going to be payable each year at renewal? The other point to confirm is whether the agent is managing the property on behalf of the owner because if they are (and you would need evidence of this) then you will never have any proper contact with the owner as the agent would be his adviser, therefore you will never be sure if the owner is aware of this extra amount or not.

Putting it bluntly, it would appear that the agent/agency is claiming an extra fee from you, but with no contact with the landlord it is difficult for you to verify. The choice to proceed therefore is obviously yours. I am definitely not condoning the actions of the agent, but you could always go ahead just to secure the property then later make a complaint to the company or even Rera.

You’ve previously mentioned that some parts of Jumeirah Village Circle may make a good property investment. Why is that and which is the best option: a studio apartment, a one-bedroom and so on? MS, Dubai

I mentioned JVC in a previous article as it is strategically located close to the new Maktoum International Airport and the World Expo site. Given the improvements of road infrastructures in its environs and the development’s ever-improving facilities such as leisure, shopping and landscaping. I feel that any property purchases here from studios up to three-bed apartments or indeed town houses or villas will be a sound investment as prices will, in the long term, increase from present levels, thus giving a good rate of capital appreciation when the time comes to sell on.

I’m a landlord of a Downtown apartment. As per Rera law, I have given 12 months’ notice to my tenants as I want to sell the apartment. But I’m not able to sell the property at the price I want. The legal notice/contract will expire in 10 days, so if I’m not able sell the property can I tell my tenant to stay? NC, Dubai

If your property remains unsold, even after the legal 12 months notification has elapsed but you still want to go through with selling it, you can continue the rent with your existing tenant on a pro rata basis until such time as the property is actually sold. Alternatively, if you have changed your mind you can rescind the notification and sign up to another proper tenancy agreement with your present tenant.

Mario Volpi is the managing director of Ocean View real estate and has worked in the industry in the emirate and in London for the last 30 years. Send any questions to [e-mail]

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice

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