# Rental Agreement, does it sound like a Scam?



## vikashkothari (Nov 12, 2012)

Hi

I am moving to Nahda Area sharjah. And have found a flat through a agent. Rental agreement is of 42K in 4 checks, but I asked and agent agreed to give it in 40K 1 checks. This is how this can be achieved as per agent.

1. I give 4 checks on landlord name(post dated)
2. Agent will give me 4 checks on my name(post dated but 5 days in advance) of same value.
3. I give single check of 40K to Agency Name(Agent is from some ALM Properties)

Seems fine to me, unless agency encash my single cheque and all their cheques get dishonoured, but I am hoping bounced cheque can be too risky for them.

Has anyone done this way, any guideline to ensure I am not in for a scam? Anywhere I can see that agent and his company is legit? What all details I verify before signing a rent agreement.


----------



## The Rascal (Aug 6, 2014)

Doesn't sound legit in the slightest. Ask yourself (or him) why would he want to do this?


----------



## Froglet (May 7, 2014)

It doesn't seem right to me. You give one cheque to the agent which they can cash in one go (40K) and they give you 4 which you can cash every 3 months... Guess what's going to happen? They will probably run...

So, how this would work is if you write one cheque in the name of the landlord. Nothing more nothing less. If they want to collect cheques in their name, they should have something called 'leasing and management of other people's property' on their license. However, to get this activity on their license they will have to make a AED 5 million deposit to I believe DLD... I'm quite sure they haven't done so...


----------



## Stevesolar (Dec 21, 2012)

Hi,
Agreed - total scam!
Run for the hills
Cheers
Steve


----------



## vikashkothari (Nov 12, 2012)

I asked him and as per him, its all about money rotation, maybe the same reason why single cheque has less contractual money because we pay in single shot then to give it in 4-6 checks? 
even I had my own doubts but as a assurance I had 2K less to pay and then one thing which i forgot to mention was he will give me 40K single cheque as well, as a security, which I should not encash and hand it over end of contract, can someone give these many checks and run away? Noway I will be able to get my money back?


----------



## iggles (Jan 4, 2015)

scam.


----------



## Mr Rossi (May 16, 2009)

Anything other than writing 1 cheque or 4 cheques to directly to the landlord - avoid!


----------



## Stevesolar (Dec 21, 2012)

Whatever the "excuse" given it is 100% scam


----------



## QOFE (Apr 28, 2013)

"Money rotation"? What a load of BS. The way it works here is that the tenant writes out the cheque(s) in the landlord's name. You should only write cheques out to an agency IF they have the license to act as a managing agent. There should not be any "duplicate" cheque writing. IF the agent is acting as a managing agent you need to see the agreement that the landlord has in place with them. 

The only cheques you should write out are:
1) deposit cheque
2) rent cheque
3) commission cheque

Tell the agent that you will report them to RERA for dubious business practises.


----------



## Sunder (Mar 11, 2014)

vikashkothari said:


> Hi
> 
> I am moving to Nahda Area sharjah. And have found a flat through a agent. Rental agreement is of 42K in 4 checks, but I asked and agent agreed to give it in 40K 1 checks. This is how this can be achieved as per agent.
> 
> ...


Hi Vikas,

Pay only 1 cheque for 40 thousand which will be in the name of landlord, that too after you get an Ejari(I dunno whether it is done in Sharjah or not). I pay 1 cheque too, my agent never asks for post dated cheques. DO NOT GIVE POST DATED CHEQUES.


----------



## Froglet (May 7, 2014)

vikashkothari said:


> I asked him and as per him, its all about money rotation, maybe the same reason why single cheque has less contractual money because we pay in single shot then to give it in 4-6 checks?
> even I had my own doubts but as a assurance I had 2K less to pay and then one thing which i forgot to mention was he will give me 40K single cheque as well, as a security, which I should not encash and hand it over end of contract, can someone give these many checks and run away? Noway I will be able to get my money back?


Just stop asking questions and trying to justify that this may not be a scam... You really want to risk it? Just move on, no biggy


----------



## Stevesolar (Dec 21, 2012)

Hi,
Just to clarify what we all stated the other day - please see article below:-
Put Dubai rent cheque in landlord's name or face Dh500,000 fine and jail - Emirates 24|7
Rent cheques should always be made out in landlords name - not the agents!
Cheers
Steve


----------



## QOFE (Apr 28, 2013)

I would also want to see the title deeds and make sure that matches the name on the tenancy agreement.
If you have to register the Ejari yourself you'll need the title deeds.

Also check that the service charges have been paid. You might end up with no pool/gym/lift/car park access in some buildings if the landlord hasn't paid the service charges.


----------



## The Rascal (Aug 6, 2014)

QOFE said:


> I would also want to see the title deeds and make sure that matches the name on the tenancy agreement.
> If you have to register the Ejari yourself you'll need the title deeds.
> 
> Also check that the service charges have been paid. You might end up with no pool/gym/lift/car park access in some buildings if the landlord hasn't paid the service charges.


I think he's got a few more issues other than is the gym working....


----------



## QOFE (Apr 28, 2013)

The Rascal said:


> I think he's got a few more issues other than is the gym working....


Ah, well. I suppose he'll get his exercise by taking the stairs...


----------

