Host
Legal Hour on Drive Live.
The topic is about paying rent to someone who turns out not to be the rightful landlord. Earlier this week, the ARN News Center covered a case in Abu Dhabi where a gang had been subletting villas and collecting rent without passing it on to the landlords. This left tenants out of pocket and in difficult situations. First of all, what are the rules on subletting, and how can tenants protect themselves against such scams?
Ludmila Yamalova
To begin with, it’s important to clarify that each emirate has its own rental laws and regulations, so the rules in Abu Dhabi differ from those in Dubai. The scam reported in Abu Dhabi isn’t new. A few years ago, Dubai faced a similar wave of scams. However, since then, the authorities have addressed the issue, and the public has become better educated about what to do and what to avoid. These scams have become rare in Dubai, but it’s not surprising they may still happen elsewhere, like Abu Dhabi, where the rental market may be less active than in Dubai.
Now, regarding subletting rules, subletting itself is not illegal unless the lease agreement specifically prohibits it. It’s a contractual matter between the landlord and the tenant. However, the key issue in cases like this isn’t the legality of subletting but rather due diligence—or, more precisely, the lack of it.
When entering into a rental agreement, there are two crucial aspects to verify:
- The party you’re contracting with (e.g., the landlord).
- The property you’re renting.
To protect yourself, always request a copy of the property’s title deed. This simple step ensures you’re dealing with the rightful owner. In Dubai, this has become standard practice due to past scams. You can also request a validated copy of the title deed from the Land Department, ensuring it’s current and still active.
If the person renting out the property is not the owner, ask for a notarized power of attorney (POA). Ensure the POA explicitly authorizes them to accept money and manage the property. Even then, it’s safer to issue rent payments directly to the owner, as named in the title deed.
Claire’s Case
Let’s bring in Claire, who contacted us yesterday with a question related to this topic.
Claire
Hi, thanks for taking my question. A couple of weeks ago, I rented a property and paid the security deposit and the first rent check. However, when I went to register the Ejari, I found out the property was blocked due to litigation and had been sold to a new owner. The broker claims they’re not liable since the money went to the landlord. What can I do to recover my money?
Ludmila Yamalova
Claire, I’m sorry to hear about your situation. First, let me clarify: since the checks were issued to the landlord and cashed by them, your case is directly against the landlord. This situation potentially involves fraud, as the landlord likely knew about the litigation but still rented out the property.
Here’s what you can do:
- File a police report. This would be a criminal case against the landlord for fraud. While this route won’t get your money back, it can apply pressure on the landlord to resolve the matter.
- File a case with the Rent Committee. This will be your civil case to recover your funds. The evidence—the cashed checks and the fraudulent contract—works in your favor. The Rent Committee is efficient and reimburses court fees if the verdict is in your favor.
Claire
That’s helpful, thank you. One more question—shouldn’t the broker have verified ownership before listing the property?
Ludmila Yamalova
You’re absolutely right. Ethically, brokers are expected to verify ownership. However, legally, your transaction was with the landlord. Unless you signed a separate agreement with the broker, holding them liable will be difficult. That said, you can demand their involvement in mediating the dispute as a matter of professional responsibility.
Host
Thank you, Claire. Good luck with resolving this issue.
Host
Let’s move on to the next topic. We’ve received a lot of questions about rental disputes and legal concerns in Dubai. Here’s one from Mark:
Mark
My tenant left the country on the day their tenancy contract expired. They mentioned wanting to renew but wanted to make changes to the agreement without providing the 90-day advance notice required by law. What can I do now?
Ludmila Yamalova
Mark, in this case, the law is clear. Any amendments to a tenancy agreement must be agreed upon by both parties and communicated at least 90 days before the contract’s expiration, unless both parties agree otherwise. Since the tenant did not comply with this requirement and has now left the country, the terms and conditions of the previous year’s agreement remain in effect.
If the tenant returns and wishes to negotiate changes, you are under no obligation to agree to them. You can simply renew the contract under the original terms or negotiate a new agreement if both parties consent.
Host
Another interesting one here from Oscar:
Oscar
What can tenants do if their landlord withholds part of their security deposit based on a disputed claim?
Ludmila Yamalova
Unfortunately, this is a common issue. Legally, landlords cannot withhold security deposits arbitrarily or unilaterally decide that a dispute justifies such action. If a landlord refuses to return your deposit, you have two options:
- Mutual resolution. Attempt to mediate the issue directly with the landlord. This is often quicker and avoids additional costs.
- Rent Committee claim. If mutual resolution fails, you can file a case with the Rent Committee to recover your deposit. Be prepared to provide evidence, such as the tenancy contract, proof of payment, and any correspondence with the landlord regarding the dispute.
Keep in mind, if the landlord claims damages, they must counterclaim with proper documentation to justify withholding the deposit.
Host
Let’s tackle one more. Ignatius sent in a question about health insurance:
Ignatius
I took out an insurance policy for my wife in December 2016. She became pregnant in January, and the clinic confirmed the pregnancy in March. The insurance company says claims aren’t covered due to a six-month waiting period. Can you clarify this rule?
Ludmila Yamalova
This issue hinges on the terms and conditions of your specific insurance policy. However, recent amendments from the Dubai Health Authority (DHA) require all insurance policies to cover pregnancy and maternity expenses. Additionally, pre-existing conditions can no longer be excluded, as they were in the past.
If your insurer refuses to honor claims, you can:
- File a complaint with the DHA. Their complaint process is straightforward and effective. Submit your policy, related documents, and evidence of denial. The DHA often resolves such disputes quickly.
- Engage a legal advisor. If the DHA process doesn’t yield results, a legal case may be an option, though this could be more time-consuming and costly.
Host
Thank you for these clear and practical answers, Ludmila. We’ve covered a range of topics today, but unfortunately, we’re out of time.
Ludmila Yamalova
It’s always a pleasure. Thank you for having me, and I look forward to answering more questions next week.
Host
Thank you, Ludmila, and thank you to all our listeners for your questions. Join us again next Monday for more insights on Legal Hour with Ludmila Yamalova, Managing Partner at HPL Yamalova & Plewka.
Stay tuned to Drive Live, only on Dubai Eye 103.8!
Host
Before we wrap up, a quick reminder for our listeners: The Legal Hour is here to provide general guidance and insights into legal matters. However, every case is unique, and it’s always advisable to seek tailored advice from a legal professional when dealing with complex or personal legal situations.
Ludmila, any parting advice for our listeners today?
Ludmila Yamalova
Absolutely. Whether you’re dealing with tenancy issues, contract disputes, or other legal concerns, the most important thing is to document everything. Keep records of agreements, payments, and correspondence. In many cases, the strength of your legal position depends on the evidence you can provide.
And always do your due diligence before entering any agreement—whether it’s renting a property, buying a car, or signing an employment contract. A little effort upfront can save you a lot of trouble later on.
Host
Wise words, as always. Thank you again, Ludmila, for your time and expertise.
Ludmila Yamalova
Thank you. See you next week!
Host
And to our listeners, keep your questions coming! You can send them via text at 4001 or through the Dubai Eye app. We’ll tackle them next Monday during the Legal Hour.
Until then, stay informed and stay tuned to Drive Live on Dubai Eye 103.8.