Tim Elliott
Hello and welcome to another edition of Lawgical, the legal podcast from the Dubai-based law firm HPL Yamalova & Plewka. Lawgical is still the Gulf region’s first and only regular legal podcast. I’m here on the 18th floor, socially distanced, at Dubai’s JLT, Jumeirah Lakes Towers District, at the firm’s offices with Managing Partner Ludmila Yamalova. It’s always good to see you.
Ludmila Yamalova
Pleasure to see you too, Tim.
Tim Elliott
Now, today on Lawgical, we have a very special guest, Damien Reid, joining us. Damien, good to see you.
Damien Reid
Nice to see you too, Tim, although unfortunately, under rather inauspicious circumstances.
Tim Elliott
Damien, you have a story to tell—a real estate story that has affected not just you but many others. In brief, you paid your rent as a lump sum to an operator who failed to pass it on to your landlord at the hotel residence where you’re staying. That’s the essence of the story, but I’ll let you explain further.
Damien Reid
In essence, that’s correct. Since we last spoke, the group affected has doubled. We’re now at 120 people on the WhatsApp group I’m part of. Essentially, this is a cautionary tale. I dealt with an agent that appeared to be a real estate agent but was actually operating under a DTCM (Dubai Tourism and Commerce Marketing) license rather than a RERA (Real Estate Regulatory Agency) license.
They offered long-term hotel residencies at very attractive rates. Given the low occupancy during the peak of COVID, it seemed reasonable. I signed up for a 12-month lease. However, it turns out I signed a contract with the agent, not the hotel. The agent, in turn, had a separate agreement with the hotel to pay monthly. They stopped paying, and the hotel eventually informed me that I needed to vacate, despite having paid the full year upfront.
Tim Elliott
That’s an unfortunate situation, Damien. Let’s backtrack a bit. How did you come across this deal?
Damien Reid
I found it on the usual online platforms like Dubizzle, Bayut, and Property Finder. The ads were appealing, showcasing attractive rates and amenities. However, looking back, there were a few red flags. The images weren’t of the actual apartments, and the ad didn’t mention the name of the hotel—just the general location.
Ludmila Yamalova
When you visited the property, how did the process unfold?
Damien Reid
I called the number on the ad, referenced the property, and was given the address. At the hotel, the agent met me and spoke with the concierge to get keys. Hotel staff even accompanied us to view the rooms, which made the arrangement appear legitimate.
Ludmila Yamalova
So from your perspective, the agency and hotel seemed connected?
Damien Reid
Absolutely. The agent had access to the premises and seemed to have a relationship with the hotel staff.
Tim Elliott
When you decided to proceed, how did you finalize the agreement?
Damien Reid
I went to the agency’s office to sign the contract and issued a single check to the agency. In hindsight, that was a mistake.
Ludmila Yamalova
Who were the parties named in the contract?
Damien Reid
It was between me and the agency. While the contract mentioned the hotel and its facilities, it was signed by the agency on their letterhead.
Tim Elliott
How did you discover the issue?
Damien Reid
It started with a late-night call from the hotel concierge, informing me that the rent for the upcoming month hadn’t been paid. Despite showing my contract and receipt, the hotel insisted that their agreement was with the agency, not me.
Ludmila Yamalova
How has the situation evolved since then?
Damien Reid
The agency stopped responding to calls, and their office is now closed. I’ve had to pay extra out of pocket to stay temporarily, but it’s not sustainable.
Tim Elliott
What steps have you taken so far?
Damien Reid
I approached RERA but was redirected to DTCM since it involves a hotel. I also filed a police complaint, but the process is ongoing.
Ludmila Yamalova
To recap, Damien, here are the steps you and others can take:
- File a complaint with DTCM – Register the issue formally to alert the regulatory authority.
- File a criminal case – Include the agency and key individuals as defendants.
- File a civil case – Seek compensation for the financial loss once the criminal case establishes fault.
- Preserve documentation – Gather all contracts, receipts, and communication as evidence.
Additionally, I’d advise staying in the property for now. The hotel cannot legally evict tenants without a court order.
Tim Elliott
Damien, thank you for sharing your story. Ludmila, as always, your insights are invaluable.
Damien Reid
Thank you, Tim and Ludmila. It’s been helpful to talk this through and understand the legal perspective.
Ludmila Yamalova
Thank you, Damien. Best of luck, and do keep us updated.
Tim Elliott
That’s another episode of Lawgical. If you have a legal question or need a consultation, visit lylawyers.com or WhatsApp +971 52 525 1611.