# Help! Landlord absconded..



## Desertgooner (Oct 16, 2016)

Hi all

I'm new to the forum but have been in Dubai just over 2 years. I have a issue with my landlord in that it appears he has done a runner. I did have a look through the existing threads but couldn't find anyone who'd had the same issue which did surprise me but may have missed one as there are a lot of landlord threads!

Anyway the long and short of it is that we have been renting an apartment in Business Bay for 2 years from the same landlord, rent paid in one cheque per year. The lease actually expires shortly - i.e. October 22nd. Back in September having returned to Dubai from being abroad we had been delivered a letter from Noor Bank addressed to the Landlord saying he has defaulted on his mortgage payments and they intend to take "enforcement action in the court...which may include foreclosure of the property and/or a court appointed process resulting in sale of the property". Having spoken to the bank I informed them that I couldn't get get hold of the landlord either but if I did manage to I would let them know...thought it best to keep them sweet. The guy at the bank told me that the process of repossession will take "months", probably six, and I haven't heard anything from them since..

So my question really is has anyone been in a similar position and where we stand legally on this. On the one hand the landlord has presumably disappeared with our deposit so he owes us money, at least in theory without doing the checkout / inventory. On the other hand our contract is up next week.. is it possible to stay in the apartment until it is repossessed by the bank? How much notice - if any - must the bank give us to vacate the property? How would we go about getting the deposit back from the landlord (suspect that is wishful thinking but presumably gives us some rights over him / the property?)

Any help or advice would be greatly appreciated.

Cheers guys


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## XDoodlebugger (Jan 24, 2012)

Desertgooner said:


> Hi all
> 
> I'm new to the forum but have been in Dubai just over 2 years. I have a issue with my landlord in that it appears he has done a runner. I did have a look through the existing threads but couldn't find anyone who'd had the same issue which did surprise me but may have missed one as there are a lot of landlord threads!
> 
> ...


I think you have hit the lottery, I would stay until they kicked me out.


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## Desertgooner (Oct 16, 2016)

Thanks XDoodle******

That had occurred to me too! But we have two young children and the though of being told we have to vacate the property immediately would be a problem! Just really trying to work out what rights we have in this situation..


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## Sunder (Mar 11, 2014)

XDoodle****** said:


> I think you have hit the lottery, I would stay until they kicked me out.


If the Ejari is done, you should be safe till the expiry of Ejari. If its not, then I guess you are living illegally.


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## Chocoholic (Oct 29, 2012)

You probably need to go and consult RERA as these are the guys who can advise you properly as to how you legally stand in this situation.


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## Desertgooner (Oct 16, 2016)

Thanks Sunder and Chocoholic

I'll speak to RERA about the it and dig out the Ejari..

Has anyone else been in a similar situation? Given the downturn here I would have thought I wouldn't be the only one..


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## TallyHo (Aug 21, 2011)

Definitely speak to RERA.

From what I remember in the past is that as the bank is in the process of taking over the property, your rights as a tenant are maintained by the bank and your contract will roll over for another year (if you want) with the bank as the landlord. So you don't have to worry about eviction. But say goodbye to the security deposit. If you want to move you probably have a nice grace period of free rent for a few weeks before rushing into a new place in lieu of a security deposit refund, but I would not attempt to game the system by staying in the flat as long as possible without paying rent (who knows what charges the bank could bring against you for squatting - they are clearly already in the process of assuming ownership and you have been notified). Maybe you'll slip through the cracks and not be noticed, then again maybe not. That's why you should speak with RERA and do what they tell you to do.

Remember: there is no such thing as a free lunch.

Come back after you've spoken to RERA and let us know. It'd be useful in case we ever find ourselves in a similar predicament.


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## Stevesolar (Dec 21, 2012)

Hi,
Your contract is with the landlord - not the bank.
If it were me, I would be staying there until the bank shows you a court document that proves they have now taken official possession.
In the meantime, I would be saving up ready to move to a hotel apartment or my next proper place.
Once the bank let you know they have possession - you can ask them for your deposit back or they can let you stay for a few weeks, to give you time to get out!
The bank can't really ask you for any money until after the date it is officially theirs - so in the meantime you would be staying there free of charge.
Cheers 
Steve


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## Desertgooner (Oct 16, 2016)

Thanks all for your responses.

I did speak to RERA today. The answer wasn't exactly clear (some language problems) but my understanding was that the bank could "repossess" and sell the property on the basis that there were existing tenants in situ. Also we are protected from eviction for a minimum of at least one year from any notice to vacate by the bank / future landlord. The RERA man said I should lodge a rent cheque with RERA which would be transferred to the future landlord in due course. He also said I should first speak to the bank again to find out what their latest iintentions are.

Not quite the answer I was hoping for!


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## saya123 (Dec 11, 2008)

As someone said there are no free lunches... you cant stay in a property for free unless you issue a cheque to your landlord. Since he's not around, you don't have a renewal in place hence you will be living in a property illegally.

I didn't understand the point on you can stay as long as Ejari is valid.. Ejari even if it exists will be valid till the end of current tenancy contract which OP said is expiring in a few days time.

You have two options really: 1) either do what RERA suggested i.e. to handover your cheque for upcoming year as a deposit to them and they will handover to whoever the new owner is (bank or new landlord that the bank sells the property to.. make sure you get a receipt just for future reference). 2) look for a an alternate unit and move on.. rents are on a declining trend as they say in various reports being published.. you might find a better deal.


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## Fat Bhoy Tim (Feb 28, 2013)

Desertgooner said:


> Thanks all for your responses.
> 
> I did speak to RERA today. The answer wasn't exactly clear (some language problems) but my understanding was that the bank could "repossess" and sell the property on the basis that there were existing tenants in situ. Also we are protected from eviction for a minimum of at least one year from any notice to vacate by the bank / future landlord. The RERA man said I should lodge a rent cheque with RERA which would be transferred to the future landlord in due course. He also said I should first speak to the bank again to find out what their latest iintentions are.
> 
> Not quite the answer I was hoping for!


You've been told you can stay for at least a year from any notice, whenever that arrives. Unless you were expecting some freebie, I don't see what the issue is.


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## Visp (Mar 23, 2013)

1. Email your landlord telling him you're staying on and will pay the rent when you get back

2. Stash the rental money away in a nest egg for the next few months and start putting out feelers for your next place.

3. When the bank finally gets around to repossessing (not before) tell them you want a few extra months to plan the move out and if they give you that, you'll move quietly.

4. Use the 6+ months of saved rent to get yourself a nice place.


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## Desertgooner (Oct 16, 2016)

Thanks all for your replies and advice.

Fat Bhoy Tim, being honest yes I suppose I was expecting some kind of "freebie" given we are AED 12k down on our deposit with no chance of getting it back, plus we have been paying all the maintenance on the flat (which has not been cheap) for the past 4 months..

Visp your plan sounds like a good one - however in the back of my mind I would always be thinking that we are in an "illegal" situation... however the thought of lodging a cheque with RERA and meanwhile not having a landlord, sorting maintenance etc is not too palatable especially when it seems the bank can do whatever they like. I suspect our legal right to one year's notice will only be applicable if we do renew with a cheque upfront to RERA.

I'm leaning towards staying in the property for a couple of months and moving on before the banks repossession becomes reality.


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## Stevesolar (Dec 21, 2012)

Desertgooner said:


> Thanks all for your replies and advice.
> 
> Fat Bhoy Tim, being honest yes I suppose I was expecting some kind of "freebie" given we are AED 12k down on our deposit with no chance of getting it back, plus we have been paying all the maintenance on the flat (which has not been cheap) for the past 4 months..
> 
> ...


Hi,
Why not Just stay there until bank takes legal possession?
You can't realistically lodge a cheque with RERA - as nobody would leave a cheque without a payees name on it.
Cheers
Steve


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## TallyHo (Aug 21, 2011)

I agree with you in that I'd be wary about the potential illegality of "squatting" in the flat. Especially in this country. 

Staying in the flat for a few months, say through the end of the year (in lieu of getting the deposit back) is a decent plan, and then quietly move on. If I do my calculations correct that will give you basically a month's free rent on top of the compensation for the lost deposit. If ever questioned by the authorities you can say you were trying to sort out details with the bank/landlord and have the rent cheque waiting, it's a story that's passable for a few months. 

I imagine the landlord owes quite a bit in maintenance fees. I'd always be worried about the building management abruptly cutting off access to services and disabling the access cards to the garage / pool / entry. That's why pushing it too far is a bit worrisome. 



Desertgooner said:


> Thanks all for your replies and advice.
> 
> Fat Bhoy Tim, being honest yes I suppose I was expecting some kind of "freebie" given we are AED 12k down on our deposit with no chance of getting it back, plus we have been paying all the maintenance on the flat (which has not been cheap) for the past 4 months..
> 
> ...


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## SgtRoswell (Apr 7, 2014)

I have been to a similar situation and my first advise for you is, 
DO NOT WORRY !

Here is what happened with my case, 

1. 1st year, I was dealing with the Agent who was representing the Landlord and the landlord ran away.
2. 2nd Year, the ownership went to bank and the bank signed all the rental documents and took the cheques. They tried to evict me for a better market rent, I said as per RERA you can't evict me. If you want to evict me, go to RERA .... 

3. 3rd Year, Same as second but I was receiving many notices from Courts / Lawyers regarding debt payments / legal action / eviction but all on the name of the Landlord, I ignored every single one of them. 

4. 4th year, I have the new landlord now but the case is still pending in the court and I still receives notices. 

I used to have panic attacks every time there was a notice on my door but then I went to RERA and spoke to some manager there who told me to relax and said all of this are just ownership and debt collection tactics.

You can live as long as you want if you have all the legal documents ejari and all, and just ignore all those notices. If you can't be at peace, you can move out after your rent period is over.


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## twowheelsgood (Feb 21, 2013)

Stevesolar said:


> You can't realistically lodge a cheque with RERA - as nobody would leave a cheque without a payees name on it.


Absolutely - leave the cheque with RERA in the name of the landlord to prove you have done everything required to pay the landlord. Of course it won't get cashed as he can't get at it.

If and when the bank takes possession, they will then know you have done everything possible to actually pay and cannot complain about it.


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## Stevesolar (Dec 21, 2012)

twowheelsgood said:


> Absolutely - leave the cheque with RERA in the name of the landlord to prove you have done everything required to pay the landlord. Of course it won't get cashed as he can't get at it.
> 
> If and when the bank takes possession, they will then know you have done everything possible to actually pay and cannot complain about it.


Great idea!!


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## Desertgooner (Oct 16, 2016)

That does sound like a very good plan twowheelsgood. I guess I assumed that the cheque to be left with RERA would have to be made out to RERA ( excuse my ignorance)
Tally Ho you make a very good point about the access cards , that was a big concern of mine too that they would be cut off. I guess if I confirm that I have lodged a cheque in the landlords name with RERA and prove this they cant decline to reactivate them....and guess what the landlord owes the building management company at least one service charge!


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## TallyHo (Aug 21, 2011)

If you leave cheques made out to the LL with RERA, then what happens? If the landlord can't claim the cheques because he can't step foot in the country, do we know he can't send someone to collect them? Can you retrieve them easily? Cheques are legal documents that are taken very seriously in this country. 

In other words, just be careful writing cheques you have no intention of being cashed. You have no idea how it may come back to bite you in the arse. 

At this point I would only write out a cheque to the bank that's taking possession of the apartment and leaving that with RERA for them to collect in due time and I would do this only if I wanted to stay in the apartment. Or not write out a cheque at all, keep your head down and move out quietly in a few months. Frankly, I'd go with the latter and plan to move out in late December / early January and leave the keys and access cards with the building management. How would one deal with a bank over maintenance issues, for example?


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## twowheelsgood (Feb 21, 2013)

TallyHo said:


> At this point I would only write out a cheque to the bank that's taking possession of the apartment


You only write cheques to the people listed as the owner on the Land Registry - how many times do we have to tell people this ?

Doing otherwise leaves the OP open to fraud as the company could cash it even though it might take years to go through the courts, and the landlord could claim to have never been paid (which is true).

One has to be careful as until the company actually has legal title reflected in the land registry, its not their property, no matter what they claim.


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## Stevesolar (Dec 21, 2012)

twowheelsgood said:


> You only write cheques to the people listed as the owner on the Land Registry - how many times do we have to tell people this ?
> 
> Doing otherwise leaves the OP open to fraud as the company could cash it even though it might take years to go through the courts, and the landlord could claim to have never been paid (which is true).
> 
> One has to be careful as until the company actually has legal title reflected in the land registry, its not their property, no matter what they claim.


Agreed - and that's why I suggested not leaving a cheque with RERA and simply staying put until the bank turns up with paperwork proving they are now the legal owners.
Any potential rent owing to the bank would then only be from the date they took legal possession from the current owner - not from the end of the current rent contract.
As this is likely to take more than 6 months from now - the OP has plenty of time to live there - on his deposit and maintenance fees paid - in lieu of rent.


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## TallyHo (Aug 21, 2011)

Sorry to bump up this thread but someone posted a new thread on another popular expat forum about a coworker who arrived home to discover his rented apartment was locked and the lock changed because the property had been seized in foreclosure from the landlord and handed to the bank. Both the landlord and the real estate agency have disappeared/done a runner. Apparently spending the last two days in the courts to gain access to the apartment has resulted in nothing and even RERA only advised the renter to file a court claim. 

There's probably more to the story than we know. But even so, be careful in how you handle this. Remember, there is no free lunch in this country.


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## Desertgooner (Oct 16, 2016)

Hi all

Sorry for the delay in giving you an update on the situation. There hasn't been an awful lot to say and there still isn't really. We're still living in the apartment, haven't paid rent since October although the landlord ran off with our deposit. there's been no real movement from the bank albeit they have tried to drop off two amarex parcels addressed to the Landlord. We haven't signed for or accepted them. We did think about lodging a cheque with RERA but haven't felt any pressure so didn't bother doing so in the end. Last conversation with the bank was in early December when they said that reposession could be in January or February. Of course, it could be the case that we get thrown out tomorrow but as things stand no sign of that. We are moving out on February one so fingers crossed nothing really happens before then.

We made friends with the rep at the management company of Executive Towers so we've managed to keep extending the access cards.

Perhaps the moral of the story is there is an occasional free lunch in Dubai if you pick your moments...I hope I don't have to eat those words!!!

Thanks for all your help and responses. Sorry I do ldnt provide a more definitive guide to others who may find themselves in the same position.


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## The Rascal (Aug 6, 2014)

Good for you, just make sure you have the rent available if needed....


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