07 July 2011

Investigation under way after property company leaves tenants stranded

Househunters in Dubai claim they have been duped out of thousands of dirhams after a property firm vanished overnight with their cash.

Tenants have told 7DAYS how they were shown around properties in Jumeirah and Al Barsha by J&E Properties, signed contracts and handed over cheques.

One prospective tenant paid out Dhs140,000 - a full year's rent, plus other fees. But when the company's clients
later tried to contact it, they were told the office was closed for three days due to a bereavement.

That was on June 19.

The company's agents have been un-reachable on their mobile phones since and the office number is disconnected.

Dubai Municipality's Rent Committee, which handles rental disputes, confirmed it has received more than 10 complaints about J&E Properties in Deira, and an investigation has been launched.

One victim, Mashhood Hamid, 62, from Pakistan, said: "We gave a cheque for Dhs120,000 made out to the
company for rent.

"We also gave a Dhs6,000 deposit, Dhs6,000 commission and Dhs8,000 for our DEWA bills in advance. The money has been withdrawn from our account."

WARNING OVER RENT CHEQUES

Hamid was supposed to have moved in to his new home on July 5, but is now stuck in his old property as he tries to get his money back.

He said: "I went to the office and met another five or six people looking for the agents. The company said the office was closed for three days, but I tried to contact them continuously for about 10 days and all the phones were switched off."

Hamid said he spoke to the landlord of the property he was supposed to rent, adding: "I paid the rent cheques in the name of the company and they then gave separate cheques to the landlord. He offered to give me the cheques they had written him, but what use are they if there is no money there?

"I'm retired and this is a big hit for me. My wife works but it has definitely made our financial situation hard."

Another victim said he was shown a five-bedroom villa in Jumeirah and paid the company Dhs127,000 for the year.

Lawyer Ludmila Yamalova, who specialises in property law, said: "I recommend you never give cheques addressed to the estate agent. They should always be addressed to the landlord. The agent's commission should either be paid by the landlord or the tenant should pay it separately."

She added all legitimate agencies must be registered and approved by RERA.

© 7Days 2011