I recently moved from Abu Dhabi to Dubai for a new job. While looking for a house, an agent showed us an apartment that we ended up signing an agreement for. I gave her the cheques for the rent, deposit and commission. About 10 days later when we wanted to hand over the property to get cleaned, we discovered that in the 10 days since we'd seen the apartment, mould had developed and there was water damage to the paint and both the kitchen cabinets and bedroom closets. After calling the agent to inspect it, we agreed with her and her boss to void the contract and return the cheques. Now, three weeks later, she has filed a complaint with Rera to force me to pay commission. As the contract was voided before the start date of the contract, am I within my rights not to pay as her services were voided with the contract? SS
An agent's commission is due once a contract is signed, whether for rent or for sale but is normally payable on the start date (for rentals) or transfer date for sales. I presume that your contract was declared void by all parties, not just by you and the agent. I also have to assume, therefore, that the work was too much for the landlord to rectify within your chosen time frame. If, after a contract is signed, the tenant decides to back out, then even though the contract had not started the agent would still be eligible for his commission. However, and this is where I believe the agent in your case is wrong, if the agent and his boss have decided to nullify the contract then there is no commission due. I would not worry too much about the case being opened in Rera as I presume you have written proof that the agent was in agreement to cancel the contract.
I have been served a 12-month eviction notice from the landlord on a Dubai Courts' notarised letter – he had originally tried to get me out with six months' notice, so I advised the agent on the law, and hence the notarised letter. My feeling is that he's not actually selling the apartment at all, as last year the agent asked me to sign a non-renewable contract (again I advised them this was illegal) and so I got the rent at the same price for the third year (they gave me less than 90 days' notice for a rent increase, so they had to give it to me for the same price). I have had to battle with them every year … and I feel the eviction notice is his way of getting me out, so he can increase the rent considerably. Am I within my rights to negotiate with the new landlord, or do I have to leave after the 12-month notice ends next year? LW, Dubai
While I cannot cast aspersions, if the landlord has served you the 12-month notification to vacate in the proper manner for reason of selling, this has to be accepted by you.
If the property does indeed sell, and presumably this will be to an investor who would wish to rent the property out, there is nothing that states you cannot try to negotiate with this person. This, however, could prove to be difficult because the new landlord can get a much higher rent if the property is empty. So even if you wanted to stay, it would be unlikely that this new landlord would accept a rent other than the full market rent he could achieve if you vacated. The second point is that if the property remains unsold during the 12-month notice period, the law is silent on whether you have to vacate in 12 months or indeed could stay on until a buyer is actually found. You do have the right to see the memorandum of understanding (MoU) to prove the property has been sold and to whom and also when the transfer is scheduled to take place. You would only really find out your fate if the seller opened a case at the Rental Dispute Committee, then a presiding judge would make a definite decision once and for all if you could stay on until the property is actually sold.
Mario Volpi is the managing director of Prestige Real Estate in Dubai (prestigedubai.com). He has 30 years of property industry experience in the emirate and London. Send any questions to mario@prestigedubai.com
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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