Host
There’s just so much more to hear. Download our podcasts at DubaiI1038.com.
Drive Live Talks Legal, and it is our pleasure to welcome Ludmila Yamalova to our brand-new glass-fronted booth. It’s a bit like being in a fishbowl—but a good fishbowl.
Ludmila Yamalova
Yes, I enjoy being in the fishbowl with the rest of you fishes.
Host
Well, six seconds in, and I’ve forgotten who you are because I obviously have the memory of a goldfish. There you are. Ludmila’s here. Ludmila’s here. Ludmila’s here. Nice to see you.
So, the one thing you’re bringing in today—and it’s a good place to start, I think—is the ongoing issue of fraud. It’s not a problem that’s ever going to go away, but there are a few things that have caught your attention.
Ludmila Yamalova
Indeed. Fraud continues to evolve, and in the last few weeks, we’ve come across two specific types of scams. The first involves companies claiming to be licensed by the DIFC Authority for investment purposes. They’ve been soliciting funds from unaware individuals using fraudulent documents that appear to carry official DIFC and DSCA logos. This is a more professional level of scamming compared to what we’ve seen in the past.
The DIFC even issued a press release, attaching copies of these fake documents to warn people. The takeaway here is always to do your due diligence. Verify any documents with the relevant authorities before investing your money.
The second scam we’ve encountered recently relates to car sales. In just the past 10 days, we’ve seen three cases following the same pattern. A seller advertises their car on a platform like Dubizzle, and a so-called buyer inspects the car, agrees on a price, and then completes the transfer at the RTA. However, payment is made via a personal check, which later bounces due to insufficient funds or a closed account.
This has become more concerning because recent changes to the law regarding bounced checks mean that certain cases no longer automatically lead to criminal prosecution. Instead, the seller often has no choice but to file a civil case, which can take time and incur costs, leaving them without their car or funds in the meantime.
Host
What’s your advice to prevent falling victim to these scams?
Ludmila Yamalova
The best way to protect yourself in car sales is to insist on either cash or a manager’s check, which is as good as cash. Avoid accepting personal checks. Manager’s checks cost between AED 25 to AED 50 and require the buyer to have sufficient funds in their account, making them a safer option.
If the buyer refuses to provide cash or a manager’s check, that’s a red flag, and you should walk away from the deal. Fraudsters often play on emotions, like guilt or shame, to pressure sellers into accepting less secure payment methods. Stay firm and insist on your original terms.
Host
That’s excellent advice. Fraudsters are getting bolder, but preparation and awareness can make all the difference.
We’ve got more legal topics to cover today. If you have a legal question for Ludmila, text us on 4001 or use the free app. You can also call us directly at 423 1010.
Stay tuned for more on Drive Live Talks Legal!
Host
Let’s keep the questions coming. We have Shiraz on the line. Shiraz, good afternoon. What’s your question for Ludmila?
Shiraz
Good afternoon. I recently vacated my rental apartment on December 31st. I’ve been trying to get my security deposit back, which is 5%, but the property management company is claiming they won’t return it. They’re saying the funds were used for maintenance like wall repairs and drawers, even though I repainted the apartment, cleaned it thoroughly, and ensured it was in good condition. Do I have any recourse?
Ludmila Yamalova
Thank you for your question, Shiraz. This is, unfortunately, a very common issue. Landlords often resist refunding deposits by claiming maintenance costs. First, it’s great that you documented the condition of the apartment before vacating. Your video evidence will be critical in proving that you returned the apartment in the same condition it was handed over.
Since you’ve already tried negotiating without success, your next step is to file a case with the Rental Dispute Committee (RDC). You don’t need a lawyer for this process—it’s designed to be accessible for tenants. Just ensure your documents are translated into Arabic if needed.
The RDC will require the landlord to provide receipts and evidence of the alleged maintenance costs. Additionally, they will have to prove that the expenses were necessary and not part of general wear and tear, which isn’t covered by the tenant’s deposit.
Host
Shiraz, did you capture timestamps on your video to show the date when the apartment was vacated?
Shiraz
Yes, the video has timestamps, and I’ve kept all communication records with the property management company.
Ludmila Yamalova
That’s excellent. The RDC will take this into account. Also, if the landlord claims expenses exceeding the deposit, they will need to justify those costs as legitimate maintenance, not upgrades or improvements. For example, if they replaced appliances or retiled floors, those costs wouldn’t be valid deductions from your deposit.
Shiraz
That’s helpful. One quick question—if they claim maintenance costs exceed my deposit, can they demand additional money from me?
Ludmila Yamalova
They could attempt to, but the burden of proof is on them. They must demonstrate that the costs were reasonable, necessary, and related to maintaining the apartment—not for improvements. If they fail to do so, their claim won’t stand.
Host
Thanks for calling, Shiraz. Hopefully, the RDC will help you resolve this. Let’s move on to a different topic—investment scams.
Ludmila, you mentioned earlier that documentation from fraudsters is becoming increasingly sophisticated, especially in cases involving financial investments. How can people verify the authenticity of these documents?
Ludmila Yamalova
Great question. The key is to verify directly with the relevant government authority. For example, in the DIFC investment scam, the fraudsters provided fake licenses that appeared legitimate. However, the DIFC maintains a public registry where you can check if a company is licensed and whether it’s authorized to perform the activities it claims.
Always ask for a license number and verify it with the relevant authority. This includes confirming not just the license’s validity but also whether it covers the specific activity being promoted. If the party refuses to provide these details, that’s a major red flag.
Host
Due diligence is clearly crucial. It’s unfortunate that fraudsters exploit people’s trust. Shall we move to the next caller?
We’ve got Ali on the line with a question about an off-plan property purchase. Ali, good afternoon.
Ali
Good afternoon. I purchased an off-plan property two years ago and paid 50% upfront. However, I still haven’t received the SPA (Sales and Purchase Agreement). All I signed was a reservation agreement, which references the SPA multiple times. Additionally, there’s been no construction progress on the site. Can I cancel the deal and claim a refund?
Ludmila Yamalova
Thank you for your question, Ali. There are two potential issues here: the absence of the SPA and the lack of progress on the construction.
First, while it’s concerning that you haven’t received the SPA, the reservation agreement can still serve as a binding contract. The absence of an SPA doesn’t necessarily void the agreement—it just complicates enforcement. However, the delay in construction could constitute a breach of contract if you can demonstrate that the project won’t be completed within the promised timeframe.
Ali
The expected completion date is 2019, but they haven’t even laid the foundation yet.
Ludmila Yamalova
In that case, you may have grounds to file a case based on constructive breach of contract. Essentially, this means the developer has failed to meet their obligations, and there’s no realistic chance of them completing the project on time.
You should start by gathering evidence of the delay, such as photos of the site and any communication with the developer. Then, file a case with the relevant authority—in Abu Dhabi, that would be the Abu Dhabi Judicial Department or a similar entity handling property disputes.
Host
Ali, does that help?
Ali
It does, thank you. I’ll start collecting evidence and explore filing a case.
Host
Best of luck, Ali. Ludmila, as always, your insights are invaluable.
That’s all the time we have for Drive Live Talks Legal today. Ludmila Yamalova from Yamalova & Plewka, thank you for joining us.
Ludmila Yamalova
Always a pleasure.
Host
We’ll be back with more legal discussions next week. Stay tuned for giveaways and updates from the Dubai Duty-Free Tennis Championships!