# What's the catch?



## woodlands (Jan 13, 2010)

Hi,
I have a villa here, the going rate for which is say 170-180. I have an agent calling me to offer me 185 with 2 cheques. They will then sublet it to a single family as per the contract.
Surely there is a catch, the risk of not being able to get the tenant in quickly enough is too high for a sensible business. Why would they do this..what am i missing....or am i just too cautious? :confused2:


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## Tropicana (Apr 29, 2010)

How can you be sure they will sublet it to a single tenant? Theres a good chance they will stuff it with 8 people in a room


And AFAIK, subletting is illegal, in fact half the housing problems and issues in Dubai are because of agents/middlemen subletting and screwing over the tenant and landlord to increase their share of the pie.


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## petrolhead (Jun 27, 2011)

I find it's soooooo difficult to deal with landlords directly out here but if I'm wrong then I'd be more than grateful being advised otherwise


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## Rutilius (Jan 22, 2011)

woodlands said:


> Hi,
> I have a villa here, the going rate for which is say 170-180. I have an agent calling me to offer me 185 with 2 cheques. They will then sublet it to a single family as per the contract.
> Surely there is a catch, the risk of not being able to get the tenant in quickly enough is too high for a sensible business. Why would they do this..what am i missing....or am i just too cautious? :confused2:


gulfnews : Family duped as home rented to others


That's the catch! he probably has some horrendous scheme lined up to dupe 6 - 10 families and make twice or thrice as much as the first check he would have paid you before he flees.


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## indoMLA (Feb 6, 2011)

woodlands said:


> Hi,
> I have a villa here, the going rate for which is say 170-180. I have an agent calling me to offer me 185 with 2 cheques. They will then sublet it to a single family as per the contract.
> Surely there is a catch, the risk of not being able to get the tenant in quickly enough is too high for a sensible business. Why would they do this..what am i missing....or am i just too cautious? :confused2:


Call the police and then walk away.


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## woodlands (Jan 13, 2010)

Its MFR properties, based out of DIFC. still confused


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## Maz25 (Jul 6, 2008)

woodlands said:


> Its MFR properties, based out of DIFC. still confused


Alarm bells are obviously ringing in your head, so trust your instincts and walk away. If something sounds way too good to be true, it probably is...

Ask yourself, in this day and age when tenants will never ever pay the advertised price and negotiate you down on the price, why would someone offer more than a property is worth?

There are many dodgy agents out there and just because they have an office set-up, it does not mean that they are legit...


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## readmetwice (Jul 24, 2011)

woodlands said:


> Its MFR properties, based out of DIFC. still confused


May be a bit late on this put thought it was relevant to post as its related to the aforementioned broker. 

They rented and apartment to us for 1 check with a contract between us and MFR, they held a separate contract for an undisclosed amount with the landlord. The rental agreement was signed with the promise to take care of many items needing repair: the refrigerator that did not close, thus did not allow for food to be stored and a major leak. Apartment was also not clean, inclusive of a thick layer of mold in the cooler.

Months later phone calls dodged, MD of the company hung up the phone and still no repairs.

Out of shear luck the landlord came knocking at our door! He told us that the broker had an agreement with him for less the amount we paid for 4checks! They had paid the first but closed the bank account before he could cash the second. He has his lawyers on it.

This story has a happy ending for now as the landlord is seeing to the repairs and has agreed to deal with us directly as he will not go back to those brokers again. 

Moral of the story, if new to town, ask around for a recommendation - or look to expat forum of course


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## readmetwice (Jul 24, 2011)

*Correction*

Quick correction to my own post: the broker had a 4-check contract with the landlord for over 20k then the amount rented to us for 1check. 

Speculation: the brokerage either a) expected to rent it for more (does not know the market) OR b) pays higher rent amount in order to "borrow" the cashflow difference between 4 checks and 1check. Basically a ponsi scheme if with 5% broker fee and deposit (given their attitude it seems they think they will keep it) they still don't break even. 

Hope this helps people new to dubai, renting in Dubai. 



foodfan said:


> May be a bit late on this put thought it was relevant to post as its related to the aforementioned broker.
> 
> They rented and apartment to us for 1 check with a contract between us and MFR, they held a separate contract for an undisclosed amount with the landlord. The rental agreement was signed with the promise to take care of many items needing repair: the refrigerator that did not close, thus did not allow for food to be stored and a major leak. Apartment was also not clean, inclusive of a thick layer of mold in the cooler.
> 
> ...


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## EMAD75 (Mar 15, 2008)

Readmetwice, seems we've found ourselves in the same situation with MFR at the moment. 
How did you get out of the situation? We have paid our rent to MFR in 1 check but landlord has only been able to cash the first cheque from them, second has now bounced. 
Worried that our rent is fully paid and we still have 10 months to go and landlord is not getting hs money!
Would be really helpful to know how you're handlign this as we're in the midst of RERA, etc
Thanks!


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## Bigjimbo (Oct 28, 2010)

The scam is this, the brokerage offers the Landlord a high amount, in 4 cheques. Then they rent it out at a lower amount in 1 cheque. Collect enough in a given time frame on enough properties, get on a plane and never set foot in Dubai again. Can't comment on the aforementioned brokerage, but I lost a deal to these guys and couldn't figure out how they do what they do.


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## readmetwice (Jul 24, 2011)

EMAD75 said:


> Readmetwice, seems we've found ourselves in the same situation with MFR at the moment.
> How did you get out of the situation? We have paid our rent to MFR in 1 check but landlord has only been able to cash the first cheque from them, second has now bounced.
> Worried that our rent is fully paid and we still have 10 months to go and landlord is not getting hs money!
> Would be really helpful to know how you're handlign this as we're in the midst of RERA, etc
> Thanks!


So sorry to hear you are in the same sticky situation. We can take this offline via direct message to discuss in detail if you like.

In general, the landlord seems well connected, GCC national, that has handed over the work to his lawyer. Seems confident in recouping the money although these folks will put up a fight. The name of the game is delay as much as possible, I am afraid. 

A second worry is our deposit of 5% of rent, which I am sure they will not want to return amiably. Although here the landlord will be able to clear up that no damage was done if we have to take the case to Lands Department. And he holds a much bigger deposit from MFR. 

Thankfully the situation is better, the landlord is aware of the broker's "game" and is now directly communicating and aligned with us. He stated clearly he will not deal with them again upon renewal.


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## readmetwice (Jul 24, 2011)

Bigjimbo said:


> The scam is this, the brokerage offers the Landlord a high amount, in 4 cheques. Then they rent it out at a lower amount in 1 cheque. Collect enough in a given time frame on enough properties, get on a plane and never set foot in Dubai again. Can't comment on the aforementioned brokerage, but I lost a deal to these guys and couldn't figure out how they do what they do.


Bigjimbo, do you register rental contracts with RERA? Do you think this has any weight on our ability to fight the terms within the lands department? I heard of this requirement but seems no one does it.


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## Bigjimbo (Oct 28, 2010)

readmetwice said:


> Bigjimbo, do you register rental contracts with RERA? Do you think this has any weight on our ability to fight the terms within the lands department? I heard of this requirement but seems no one does it.


Its a bit of a grey area, as this is the Ejari process. When I did my exams for the RERA card, only specially trained agents could use the system to register contracts, although this was very nearly 2 years ago. The company I work for manages a lot of properties, and for these ones we do register. For un-managed units we put a clause in the contracts to say that the responsibility for Ejari falls on the Landlord.

What was clear at the time was that RERA would not look at a case with a dispute if the contract was not registered.


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## ibkiss (Feb 1, 2012)

Bigjimbo said:


> Its a bit of a grey area, as this is the Ejari process. When I did my exams for the RERA card, only specially trained agents could use the system to register contracts, although this was very nearly 2 years ago. The company I work for manages a lot of properties, and for these ones we do register. For un-managed units we put a clause in the contracts to say that the responsibility for Ejari falls on the Landlord.
> 
> What was clear at the time was that RERA would not look at a case with a dispute if the contract was not registered.


There is another thread on the Ejari issue :
http://www.expatforum.com/expats/dubai-expat-forum-expats-living-dubai/102840-registration-dubai.html


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## RoxiRocks (Aug 16, 2011)

Just looked on RERA site for this broker (MFR Realestate LLC) and there are no individuals listed. Are these people still in business? They should be named and shamed.


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## cpaexpat (Feb 16, 2012)

mlo2cool said:


> Hi Readmetwice and EMAD75, I am a reporter with a (big) local newspaper in the UAE and I am doing a story on this company. It would be great if you would be interested in speaking to me about your situation.
> 
> Thanks!


I have just leased my Appartment thru MFR. i negotiated the price down but they insisted to be paid in one check. The problem I am facing with them is that they are not answering my calls including the MD to do maintenance work as promised. I am now stuck & not sure how the relation will turn to in future, moreover I know nothing about the landlord. The posts on MFR was very alarming to me as I am looking forward to keep the Appartment for the next 3 years at least where rent is somehow fixed.


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## sabfrance (Sep 9, 2010)

This thread is fantastic. Reminds me of the guys who sold the Effel Tower for scrap metal...


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## maartina (Feb 21, 2012)

we are also one of the victims of MFR.


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## indoMLA (Feb 6, 2011)

maartina said:


> if we will unite all together we will have more chances to do something


C'mon, just one more post.... you can do it....


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## indoMLA (Feb 6, 2011)

post the link and include spaces in the link so it doesn't show up as a link...

How is MFR still able to do business in the UAE if they are known cheats?


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## maartina (Feb 21, 2012)

finally,it worked! please,join the forum if you are one of there victims !


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## indoMLA (Feb 6, 2011)

*IF*


RoxiRocks said:


> Just looked on RERA site for this broker (MFR Realestate LLC) and there are no individuals listed. Are these people still in business? They should be named and shamed.


*AND*


maartina said:


> there is no more MFR. They run away...


*THEN HOW is this possible....*


cpaexpat said:


> *I have just leased my Appartment thru MFR*. i negotiated the price down but they insisted to be paid in one check. The problem I am facing with them is that they are not answering my calls including the MD to do maintenance work as promised. I am now stuck & not sure how the relation will turn to in future, moreover I know nothing about the landlord. The posts on MFR was very alarming to me as I am looking forward to keep the Appartment for the next 3 years at least where rent is somehow fixed.


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## maartina (Feb 21, 2012)

Office is closed recently, they moved out just around 1-2 weeks ago. So many people still don't know about it. When time will come to get money, they will discover that cheque is bounced , and nobody is there to answer...


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## cpaexpat (Feb 16, 2012)

I have visited there offices last month in January at DIFC located in Attar business tower to sign the contract. There phone no. Is 04-3545100.
The managing director's name is Fahad Sulehria, his email which I got to know from the website domain ownership details (www dot mfrae dot com) is([email protected] dot com)
I had to add the word dot for the above addresses in order to post my thread.


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## maartina (Feb 21, 2012)

cpaexpat said:


> I have visited there offices last month in January at DIFC located in* Attar business tower* to sign the contract. There phone no. Is *04-3545100*.
> The managing director's name is Fahad Sulehria, his email which I got to know from the website domain ownership details (www dot mfrae dot com) is([email protected] dot com)
> I had to add the word dot for the above addresses in order to post my thread.


Yes, last 10 days this office is empty.They moved out. Nobody answers the phone.


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## cpaexpat (Feb 16, 2012)

*MFR is still advertising*

I have noted that MFR is still posting lease ads in Dubizzle.

I will enclose some links after I do my 4th posting .


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## cpaexpat (Feb 16, 2012)

Still I need another post to be an active member.


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## cpaexpat (Feb 16, 2012)

I am still not able to post the links.


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## igotscammed (Feb 21, 2012)

Dear all,
You've got a new participant to your forum, I've entered the club of victims too.

It was definitively suspicious to get above market rate offer. I received 4 cheques, 2 got cleared without any issue. I stopped by to meet the person living in my premises and he was a nice gentleman... I felt that although it was a very disorganized company, things seemed to have worked fine at the end. I told myself, worse case, they're laundring money... as long I'm getting my cash...why should I bother...

I returned in December to give them a 2nd property. The sales agent told me they shifted to new office in Sama building 4th floor, next to trade center roundabout. He told me all staff was relocating here and that they were merging 2 companies together, same owner apparently... It didn't ring a bell at the time... consolidation sounded like a reasonable explanation. Once again, I got my cheques and rate about market rate... 

Last week, my 3rd cheque on my first property bounced. Account closed according to RAK BANK. Now I didn't pay attention to that at time of signing my contract... the account name and contract carried a similar MFR initials... but this this time Mark Falcon Real estate...

When visiting them to complain about my bounce cheque, they now told me that they have nothing to do with MFR. Receptionist said that hundreds of MFR Properties customers showed up here in the last months... during my visit to both the bank, the police station and their office, I've met a few people with the same situation... the scam was real...

I've tried to see how Mark Falcon Real Estate could help... they now offered to transfer the contract onto their name and pay me 50% of the remaining rent... mhhh... not sure why would take a hit on this...especially if they're not related. This is tempting considering the potential delay in proceeding with the official RERA process.

When asked about replacing my last cheques on my second property, they said they could do it at 70% of the remaining rent... I'm almost tempted to take it 

I went to meet the tenant of my first apartment and to my surprise, the contract date was extends beyong my own contract with MFR... noting also that his contract was at 20k lower than my own with MFR.

I'm not sure how we can resolve this, but I'm now getting the feeling that even my second property under Mark Falcon Real estate will be part of the same scheme and we will hear in a month or two that they also ran away... 

If I wanted to serve a notice period of 2 months to break the contract, who can I give it to today... MFR being closed...
Secondly, am I allowed to evict the current tenant ? His contract is with MFR... MFR not paying me... so in theory I could lock the premise?

This is going to be a long story...


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## Bigjimbo (Oct 28, 2010)

There must be the same company, and I think it would be ridiculous to accept their offer of 50% or 70%. If something is too good to be true then it is.

"If I wanted to serve a notice period of 2 months to break the contract, who can I give it to today... MFR being closed...
Secondly, am I allowed to evict the current tenant ? His contract is with MFR... MFR not paying me... so in theory I could lock the premise?"

I don't think that you can do this. I believe that you would have signed an agreement to let MFR sub lease your property, which they have done, so I guess that the tenants contract is legal. I am not a solicitor though, and I guess thats most peoples next step.


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## braun (Feb 23, 2012)

I am a landlord and I have also fallen victim to this company. My 3rd cheque just bounced


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## readmetwice (Jul 24, 2011)

mlo2cool said:


> Hi Readmetwice and EMAD75, I am a reporter with a (big) local newspaper in the UAE and I am doing a story on this company. It would be great if you would be interested in speaking to me about your situation. Please get in touch
> 
> Thanks!


Will consider it, drop me a direct message with an email from the Paper's domain. Sorry just got to make sure you are not one of "their" people collecting info. 

Thanks for the interest, there are more than enough people hurt for a good story


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## jojo (Sep 20, 2007)

readmetwice said:


> Will consider it, drop me a direct message with an email from the Paper's domain. Sorry just got to make sure you are not one of "their" people collecting info.
> 
> Thanks for the interest, there are more than enough people hurt for a good story



Very wise comment. 

Jo xxx


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## woodlands (Jan 13, 2010)

*Tenants beware too:*

Marks Falcon is pulling off something similar i reckon.

Imagine that as a tenant you are handing over a cheque to someone for an apartment he does not own.
Rera registration offers little protection. There are many agencies who are sub agents of MFR or other top level agencies and all use the same rera id.


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## Reader (Sep 11, 2012)

woodlands said:


> Hi,
> I have a villa here, the going rate for which is say 170-180. I have an agent calling me to offer me 185 with 2 cheques. They will then sublet it to a single family as per the contract.
> Surely there is a catch, the risk of not being able to get the tenant in quickly enough is too high for a sensible business. Why would they do this..what am i missing....or am i just too cautious? :confused2:


Hi Woodlands,

I am reading your message now after the scam is exposed. You had identified this scam two years ago..

Did u also get duped by these guys?

Regards


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## veenuarora (Sep 11, 2012)

*Marks Falcon mess*



readmetwice said:


> May be a bit late on this put thought it was relevant to post as its related to the aforementioned broker.
> 
> They rented and apartment to us for 1 check with a contract between us and MFR, they held a separate contract for an undisclosed amount with the landlord. The rental agreement was signed with the promise to take care of many items needing repair: the refrigerator that did not close, thus did not allow for food to be stored and a major leak. Apartment was also not clean, inclusive of a thick layer of mold in the cooler.
> 
> ...




Dear all,

I am a landlord and have rented my property through Marks Falcon Real estate and looks like I will also be duped like others. 

My cheque is due mid of September and as I know few owners whose cheques are bounced in recent past, I can see the history repeating itself in my case. 

Now, I need to know what should be the next step. Can I ask the tenant to resolve the issue directly with them as he has also entered into a contract with them or it becomes complete responsibility of owner to handle this mess. 

Waiting for a way out of this situation.


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## m1key (Jun 29, 2011)

veenuarora said:


> Dear all,
> 
> I am a landlord and have rented my property through Marks Falcon Real estate and looks like I will also be duped like others.
> 
> ...


You need to speak to RERA and a lawyer. Random people on the Internet aren't, on the whole, going to be able to help you in such a legal situation.


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## veenuarora (Sep 11, 2012)

Thanks for your reply. I am not sure RERA will be able to help me now as my cheque is still not gone for clearance. I am only preparing myself to face the situation. So was checking if there is any owner's association or other organization following up with RERA on behalf of owners. I will join the group and take the matter individually as well.


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## crt454 (Sep 3, 2012)

Simple, just get it in wiritng that its only a family of no more then 5-7 people and not 80 people or laborers stuffed in there.


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## Nikkipit1 (Sep 16, 2012)

EMAD75 said:


> Readmetwice, seems we've found ourselves in the same situation with MFR at the moment.
> How did you get out of the situation? We have paid our rent to MFR in 1 check but landlord has only been able to cash the first cheque from them, second has now bounced.
> Worried that our rent is fully paid and we still have 10 months to go and landlord is not getting hs money!
> Would be really helpful to know how you're handlign this as we're in the midst of RERA, etc
> Thanks!


EMAD75 - I just had the owner of the villa that I rented with MFR knock on my door last week and explain what happened. I had no idea this was going on. 

I also paid my rent in 1 check for 1 year in March. Now the owner of the villa is demanding we move out in 2 months! Did you ever get any information? I don't get my housing allowance from my company unitl Feb of next year. What rights do the tenants have?


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## m1key (Jun 29, 2011)

Nikkipit1 said:


> EMAD75 - I just had the owner of the villa that I rented with MFR knock on my door last week and explain what happened. I had no idea this was going on.
> 
> I also paid my rent in 1 check for 1 year in March. Now the owner of the villa is demanding we move out in 2 months! Did you ever get any information? I don't get my housing allowance from my company unitl Feb of next year. What rights do the tenants have?


There was a good post about this on another forum my wife told me about. Not sure I can link to said forum here, but if you Google "Landlord, threats and non-existent property management companies.....HELP!" you'll find it.

Essentially you need to go to RERA and take some advice from them as to your rights. Understandably, the landlord wants their money, but you've both been scammed and therefore you need to look after your rights regardless of what the landlord thinks.

Good luck. Hopefully we'll see some sensible regulation come from the sorry mess.


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## saraswat (Apr 28, 2012)

Nikkipit1 said:


> EMAD75 - I just had the owner of the villa that I rented with MFR knock on my door last week and explain what happened. I had no idea this was going on.
> 
> I also paid my rent in 1 check for 1 year in March. Now the owner of the villa is demanding we move out in 2 months! Did you ever get any information? I don't get my housing allowance from my company unitl Feb of next year. What rights do the tenants have?


Not exactly sure if this applies to your situation but hope it helps. I put these up in another thread:

Checklist for Dubai renters to avoid sub-letting scams - Emirates 24/7

Dubai law protects sub-tenants... expert clarifies your doubts - Emirates 24/7


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## Nikkipit1 (Sep 16, 2012)

Thanks for the information and quick reply!


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## veenuarora (Sep 11, 2012)

Hi, 

I have discussed the case with my tenant and requested whether we can handle this out of court as swindlers have taken the money and gone but he is not showing any interest..in that case, is the only way out is going to court?


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## catchthetheives (Sep 16, 2012)

veenuarora said:


> Hi,
> 
> I have discussed the case with my tenant and requested whether we can handle this out of court as swindlers have taken the money and gone but he is not showing any interest..in that case, is the only way out is going to court?


why would he show interest? he paid his money... you should take this matter with the police with the bounced cheques you have. 

truth of the matter is, as harsh as it sound you should have been careful with the company its not the tenants fault. 

who offers prices like 15% about the market just to rent a property it should have made sense then... i'm sorry to say sir...

Besides the tenant will not have to pay or move even if you take him to court... 

Do the right thing and DONT take it out on the tenant.... the tenant didnt swindle you the company did and now in the tenants eyes you will be the same for not understanding.... 

sorry man but sometimes we have to bite the bullet....


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## Felixtoo2 (Jan 16, 2009)

I completely agree with Catch on this point. There is no way that landlords should expect the tenants to cover the losses that the landlords themselves have experienced. 
The landlords own the property and hopefully they budgeted their mortgage payments on what they could actually afford. 
The tenants on the other hand do not own any property here and have already paid their yearly rent allowance in advance and have no where else to go. 
Hopefully landlords will do the right thing as based on the price of the property the half years lost rental income is a small percentage.


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