Mario Volpi advises on the latest property issues. Pictured, JBR in Dubai. AFP
Mario Volpi advises on the latest property issues. Pictured, JBR in Dubai. AFP
Mario Volpi advises on the latest property issues. Pictured, JBR in Dubai. AFP
Mario Volpi advises on the latest property issues. Pictured, JBR in Dubai. AFP

Dubai tenant wants to reverse decision to move in after ‘things turn ugly’ with landlord


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I have a dispute with a landlord. My wife recently moved to Dubai, signed a contract with a landlord and gave security deposit cheques and rental cheques. She did not move into the flat because of maintenance issues such as a water leak, AC duct cleaning and the lights and curtains not working. She informed the landlord in writing, who initially refused to help and then sent a maintenance contractor to check, after which he agreed to carry out the work. But by then things had got so ugly that my wife felt unsafe to live in the flat as her worry was that the landlord would harass her for future maintenance too, even though there is a clause in the contract that the landlord will carry out maintenance on issues costing more than Dh300. Can I approach Rera for help with this and can I also ask for the agency fees to be returned as she has not moved in? We want our cheques back from the landlord without any deduction and fees from the agency. We have still not organised Ejari on our tenancy contract. Please advise urgently as we have to take a decision on this. HS, Dubai

I assume that the contract has been signed by both parties. If this is the case, the commission to the agency is due irrespective of whether your wife has moved in or not. Rather than go immediately to the rental dispute committee, I suggest you (as the husband) arrange a face-to-face meeting with the landlord. If this is not possible, I recommend you take up the communication role with any party regarding this property to explain how your wife is feeling about it all.

There needs to be a definite line put down that cannot be crossed, otherwise you will have no alternative but to take the matter further. You are correct that the tenant is entitled to quiet enjoyment of the property and should not have to live in fear of the landlord or anyone else for that matter. Clear guidelines therefore have to be made and adhered to.

The fact is that you have signed a contract, so unless you can get the landlord to annul this it will be difficult to get your cheques back, unless you do file a case at the rental dispute committee and the judge finds in your favour. Please remember that there is a fee of 3.5 per cent of the rental amount to file a case.

I bought an apartment on Palm Jumeirah in August, the seller of which had already served an eviction notice via the notary in May stating that he wishes the tenant to move out (in 12 months etc) because the property was being sold. The tenant says that now that the sale has been completed he needs another notice, from me as the new landlord, stating my reasons for wishing him to leave – and that the new notice would reset the clock, so he is able to stay until August 2017. Does the sale invalidate the first notice or am I still entitled to rely on the old owner's eviction notice? The information available online is very contradictory and even the Land Department/Rera don't know the answer. JN, Dubai

Your dilemma is a tricky one to accurately give advice on because the law is silent on this. The facts are, the tenant was served 12 months’ notification to vacate for reasons of selling, so I do not see why this notice now becomes obsolete in the eyes of the tenant. The sale should not invalidate the notice, in fact quite the opposite as the reason for eviction has now become a reality. But I have witnessed instances where a tenant has won the right to request a second notice. This doesn’t mean, however, that this sets a precedent. If you do not wish to send your own notification for reason of presumably moving in yourself, your only other recourse would be to file a case at the rental dispute committee, which will ultimately make a judgment specifically for your case. I realise this is probably not quite the answer you are looking for, but sadly if you (hypothetically) go ahead and ask five different people this question, I suspect you will get five different answers.

Mario Volpi is the chief sales officer for Kensington Exclusive Properties and has worked in the property industry for the past 32 years in London and Dubai. The opinions expressed in this article are those of the author and they do not reflect in any way those of the institutions to which he is affiliated. It does not constitute legal advice and is provided for information only. Please send any questions to mario.volpi@kensington.ae

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Director: Harmony Korine

Stars: Matthew McConaughey, Isla Fisher, Snoop Dogg

Two stars

TCL INFO

Teams:
Punjabi Legends 
Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan

Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
When December 14-17