# Tenancy contracts scams.



## insaned (Feb 13, 2016)

I just came aware that a friend of mine realized that he was renting a apartment that he saw online for 60k, but the contract mentioned 55k. When he pointed that out, the agency started to say that correcting it would take some time and was already signed and blabla.. so basically he signed a contract for 55k and paid 60k (for which he got a receipt for the 60k).
Now after contacting directly the landlord he realized that both were being scammed by the real estate agency or the real state agent, which woulf try to make a contract signed for 55k, give the landlord 55k but actually charge 60k (plus the normal real estate charges).. Extra 5k lost on the way.. (nice pocketing huh)

My question is that my friend wants to report this to the police, BUT since apparently he is afraid now because he was told that he was living in a villa which expats cannot live in. ANy thoughts on this? I'm completely unaware of this...

http://www.thenational.ae/news/uae-news/eviction-threat-to-thousands-of-abu-dhabi-villa-tenants

Is he OK reporting this to police or land itself in trouble? As he wants to move anyway


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## Fat Bhoy Tim (Feb 28, 2013)

insaned said:


> I just came aware that a friend of mine realized that he was renting a apartment that he saw online for 60k, but the contract mentioned 55k. When he pointed that out, the agency started to say that correcting it would take some time and was already signed and blabla.. so basically he signed a contract for 55k and paid 60k (for which he got a receipt for the 60k).
> Now after contacting directly the landlord he realized that both were being scammed by the real estate agency or the real state agent, which woulf try to make a contract signed for 55k, give the landlord 55k but actually charge 60k (plus the normal real estate charges).. Extra 5k lost on the way.. (nice pocketing huh)
> 
> *My question is that my friend wants to report this to the police, BUT since apparently he is afraid now because he was told that he was living in a villa which expats cannot live in. ANy thoughts on this? I'm completely unaware of this...*
> ...


Rubbish. He's just been lied to and he's listening to the person?


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## Mr Rossi (May 16, 2009)

Expats are allowed to live in villas. People are not allowed to share villas but it's one of the Dubai laws where it's not a problem until it's a problem. People sharing around my street never seem to last too long, while in parts of Jumeriah and Satwa there's been bed space in villas for as long as I can remember.

As for the actual scam, a victim of "doing the good business" your friend needs to chalk it up to experience and be more vigilant next time. Happens to us all.


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## insaned (Feb 13, 2016)

Fat Bhoy Tim said:


> insaned said:
> 
> 
> > I just came aware that a friend of mine realized that he was renting a apartment that he saw online for 60k, but the contract mentioned 55k. When he pointed that out, the agency started to say that correcting it would take some time and was already signed and blabla.. so basically he signed a contract for 55k and paid 60k (for which he got a receipt for the 60k).
> ...


He realized this trough other people. Not the agent.. He is trying to move actually.


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## insaned (Feb 13, 2016)

Mr Rossi said:


> Expats are allowed to live in villas. People are not allowed to share villas but it's one of the Dubai laws where it's not a problem until it's a problem. People sharing around my street never seem to last too long, while in parts of Jumeriah and Satwa there's been bed space in villas for as long as I can remember.
> 
> As for the actual scam, a victim of "doing the good business" your friend needs to chalk it up to experience and be more vigilant next time. Happens to us all.



I'm not fully aware of the situation, I'll try to clarify in this case. As even myself wasn't aware of it... Probably in his csxe thr tenant is then renting different floors I guess because I know he lives alone.

Certainly thoze were my words. However the focus hete is on the crime itself. 
Well this is what starts to call my attention, the law might punish him due to his ignorance on doing something illegal, provided by a real state agent while he is trying to report, and if so it will fail to prevent this sort of crimes because it will simply refrain anyone to not report to police in fear of the law turning against himself. Something on the law framework could be polished, because we assume that a legal contract will be.. Legal and people should be able to report it if not Legal without repercussions otherwise we will never know something illegal could be done trough contacts dobe by agents operating under legal companies. 

So the solution is closing the eyes and move on? Not reporting the crime?


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## Mr Rossi (May 16, 2009)

insaned said:


> So the solution is closing the eyes and move on? Not reporting the crime?


It's 5k, there have been reported instances where 500k have been involved and victims have been told it's a business dispute, not a criminal matter.


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## Fat Bhoy Tim (Feb 28, 2013)

Mr Rossi said:


> It's 5k, there have been reported instances where 500k have been involved and victims have been told it's a business dispute, not a criminal matter.


Depending on who's doing the defrauding of course :heh:


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## TallyHo (Aug 21, 2011)

Your friend is in Abu Dhabi? AD has villas divided into apartments. Some are legal, others are not. A lot of the villas in Khalifa City are divided into apartments and most of them aren't legal. 

5,000 is an annoying sum but it could have been much worse. I'd just accept it and get on with life and not get the police involved. Consider it an hidden tax and a lesson learnt.


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## insaned (Feb 13, 2016)

The situation ia that he wants to leave the contract which is illegal (I just confirmed other tenant is in other floor of the villa) and they have still one check and forcing to pay the amount for breaching the contract.


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## TallyHo (Aug 21, 2011)

A coworker lives in a large villa in Umm Suqeim and his villa and the neighbouring villas are all expensive (300k+ in rent). Directly across the street is an older single storey villa behind high walls that is being shared by who knows how many people but there are at least 20 cars parked outside. I've walked pass it several times and once or twice the garden gate was left open and you can see that the garden is even subdivided with temporary walls and lots of drying racks so it looks like something you see out of a shanty town. A mixture of South Asians and Filipinos. Apparently it's been like this for at least ten years. It's a funny sight with Porsches and Mercs parked on one side of the street, and the cheap Sunnys and trucks on the other side, and the villa immediately next door is owned by a rich Emirati family with an entire fleet of Land Cruisers and Mers. Very obvious what the situation is and the police drive by frequently enough but nothing has ever happened. 



Mr Rossi said:


> Expats are allowed to live in villas. People are not allowed to share villas but it's one of the Dubai laws where it's not a problem until it's a problem. People sharing around my street never seem to last too long, while in parts of Jumeriah and Satwa there's been bed space in villas for as long as I can remember.
> 
> As for the actual scam, a victim of "doing the good business" your friend needs to chalk it up to experience and be more vigilant next time. Happens to us all.


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## insaned (Feb 13, 2016)

insaned said:


> I just came aware that a friend of mine realized that he was renting a apartment that he saw online for 60k, but the contract mentioned 55k. When he pointed that out, the agency started to say that correcting it would take some time and was already signed and blabla.. so basically he signed a contract for 55k and paid 60k (for which he got a receipt for the 60k).
> Now after contacting directly the landlord he realized that both were being scammed by the real estate agency or the real state agent, which woulf try to make a contract signed for 55k, give the landlord 55k but actually charge 60k (plus the normal real estate charges).. Extra 5k lost on the way.. (nice pocketing huh)
> 
> ALSO as wants to leave the contract (which seems to be illegal due to other tenant in other floor apartment) and be legal they have still one check and they are wanting to charge the amount of contract breach. So he is trying to recover the check.
> ...





TallyHo said:


> Your friend is in Abu Dhabi? AD has villas divided into apartments. Some are legal, others are not. A lot of the villas in Khalifa City are divided into apartments and most of them aren't legal.
> 
> 5,000 is an annoying sum but it could have been much worse. I'd just accept it and get on with life and not get the police involved. Consider it an hidden tax and a lesson learnt.


Yes that is in AD. The concern is not only the 5k is that they want to charge the amount of contract breach as they still have one check.


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## Stevesolar (Dec 21, 2012)

Quick question - how can your friend be penalized for breaking a contract that is not legal in the first place?


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## insaned (Feb 13, 2016)

Stevesolar said:


> Quick question - how can your friend be penalized for breaking a contract that is not legal in the first place?


They can simply charge the amount because they have one check in their possession. 

Also in this case, everyone is fined. Landlord, real estate agency and tenant. 

What is a bit silly is that this happening in the case people don't know.. How can people guess a contract is illegal for renting when they arrive here? They simply assume so as it is in other countries.


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## Stevesolar (Dec 21, 2012)

insaned said:


> They can simply charge the amount because they have one check in their possession.
> 
> Also in this case, everyone is fined. Landlord, real estate agency and tenant.
> 
> What is a bit silly is that this happening in the case people don't know.. How can people guess a contract is illegal for renting when they arrive here? They simply assume so as it is in other countries.


Let's be realistic here.
Neither the landlord nor the estate agent will want to lose their cash cow.
Your friend needs to request his cheque and the 5000 back or he will simply inform the authorities and then all the tenants will be evicted from the property.
Under this suggestion - they would probably be prepared to give back the cheque and provide a refund.
Your friend rented the place in good faith and if they engaged an estate agent would have a strong case to be immune from any retribution from the authorities - unlike the landlord and the agent.


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## insaned (Feb 13, 2016)

Stevesolar said:


> insaned said:
> 
> 
> > They can simply charge the amount because they have one check in their possession.
> ...


Well that's my European immediate tough. I would know how to handle and advise him within Europe, but around here things seem to work differently and my experience around here is not enough yet to understand the practical issues of this and my extent on UAE is still limited... 

This agency seems to be doing this as a common practice. And the mistake here starts with my friend paying a amount a sign a contract of other amount, something I would never do. 

For the contact breach the real estate agency suggested before to have someone living there but under his contract (that way apparently they wouldn't charge the fees) which is illegal and can lead to serious problems but when he refused they said they would charge the amount of contract break (2 months) and no refund of the money. 
He already went to the agency to try to sort this out but they dont give the check back.


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## nonoa (Jan 9, 2014)

insaned said:


> Well that's my European immediate tough. I would know how to handle and advise him within Europe, but around here things seem to work differently and my experience around here is not enough yet to understand the practical issues of this and my extent on UAE is still limited...
> 
> This agency seems to be doing this as a common practice. And the mistake here starts with my friend paying a amount a sign a contract of other amount, something I would never do.
> 
> ...


I can't quite understand the situation but non-payment of a cheque is a crime here and there are real estate agents who will fight you and take you to court despite them being in the wrong. Depending on the documentation you have, you may be able to file a police case against them first at any police station. They will contact them to see if they will give your cheque back, however, if there is a lack of response, you will have to go through a lengthy and expensive court process if you want your money back. I have been taken through this and it was hell. I ended up paying twice as much.

You can look at these short videos for information about renting/buying property in Dubai and Abu Dhabi:

hhttp://blog.dubizzle.com/knowyourrights/


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