Tips to Avoid Dubai Real Estate Property Scams

Tips to Avoid Dubai Real Estate Property Scams

There is a continuous trend for buying or investing in Dubai real estate. However, while purchasing the property, many people become victims of rental property scams in Dubai. Even if the amount may not seem troublesome, it is important to stay vigilant. When such a situation arises, property investors, managers, and owners particularly foreign nationals should report the incident to the authorities immediately. 

Dubai is considered the modern heaven when it comes to real estate hotspots throughout the world. There are chances of getting a higher return on investment, while the real estate in Dubai is also very affordable at the same time. But before you put your money on the line, you should know about Dubai scams and frauds. The chances of scams exist in places where the offer looks both good and attractive. Therefore, it is necessary to be aware of the reality, and this blog will serve as the perfect guide for you.  

Tips and Tricks to Know About Possible Real Estate Property Scams in Dubai

With the introduction of online property portals finding a new home in Dubai has simplified to a considerable extent. You can buy or rent property by approaching several landlords, only a few clicks away. Furthermore, with the introduction of strict policies, the government in the UAE has ensured the safeguarding of the interests and rights of both the landlords and the tenants. These help in the avoidance of rental property scams in Dubai, while buying the property. 

Also, UAE Public Prosecution has issued a public warning against publishing misleading or false ads. Otherwise, the individuals involved in rental property scams would not have to pay hefty fines, as well as face imprisonment. A person who has posted a fake advertisement may have to pay a minimum fine starting from AED 20,000. At the same time, individuals looking for properties need to stay vigilant, if they want to ignore unpleasant experiences. Before jumping on to the tips, first, we have to see the types of real estate property scams in Dubai, UAE. 

  1. Off-Plan Property Scams

The first type of real estate property scam in Dubai, UAE is known as an off-plan property scam. In this scam, the developers are yet to begin construction on the property. The investors, on the other hand, have hopes for high returns, as promised by the fraudsters. But they soon discover the real picture when they discover the project may remain incomplete for a longer period. Furthermore, such rental property scams may also include misappropriation of funds. 

  1. The Landlord discourages Ejari Registration.

Another form of real estate property scam in Dubai, UAE occurs when a landlord discourages Ejari registration. While planning to buy a property, one must sign the lease to register with the Dubai Land Department through Ejari’s website. One of the reasons to do so is to connect with the concerned authorities regarding contract legalization. If the landlord restricts or discourages Ejari registration, then It is one of the major rental property scams.  

  1. Title Deed Fraud

The third type of rental property scam in Dubai is Title deed fraud. It occurs when the property ownership transfer is considered unauthorized. In such a case scammer may either use deceitful tactics or forge documents. To avoid such a real estate property scam in Dubai, it is necessary to conduct background checks and verify whether the property documents are authentic or not. To ensure your rights remain protected and oversee transactions of property, contact a trusted lawyer. 

  1. Copy Pasted Property Listings

The third yet one of the most common real estate property scams in Dubai involves copy-pasted property listings. In a few cases, the fraud landlords also drop the rentals significantly and also poach the listings. Interested parties should avoid these kinds of property scams in Dubai which come in the form of low rental prices. 

  1. Illegal Brokerage

The real estate market in Dubai needs to have licensed brokers for the facilitation of transactions of property. But for carrying out the rental property scams in Dubai, the fraudsters take advantage of the innocent sellers and buyers. They may get involved in fraudulent activities including misrepresentation of properties and exorbitant fees. Before starting their services, one needs to register and get a broker license with the Dubai Land Department. 

  1. The Landlord Is Unavailable

The sixth possible rental property scam in Dubai revolves around the unavailability of the landlord. When an individual claims to be unavailable, ill, or out of town, yet wants a security deposit, then this is also a possible red flag. Scammers only want to run away with your money, and thus, avoid holding meetings with anyone, including you. If the landlord is legitimate, then he would have no problems in showing their property or meeting you in person. 

  1. Illegal Brokerage

The real estate market of Dubai ensures the smooth facilitation of property transactions. For this purpose, it urges licensed brokers to come forward in this arena. However, some people take unnecessary advantage of the sellers and buyers or illegally operate the system. Hence, these real estate agents get involved in several fraudulent activities. Among them, one of the most common real estate property scams in Dubai includes misrepresentation of properties. They may also be found guilty of charging exorbitant fees. However, you should fulfill your responsibility by verifying the registration and license of the broker. For this purpose, you may verify these brokers from Dubai Land Department, before choosing their services. 

  1. Asks for Your Credit Card Details 

Another kind of real estate property scam in Dubai, UAE is when the agent asks you to pay money for their services anonymously. On the other hand, if the real estate website or agent is authentic, he may never ask you to enter details of credit cards via email or call. In case you get such a request then stop the transaction right away and act smartly. 

  1. Rental Deposit Scams

Tenants that seek accommodation may get affected by such a rental property scam in Dubai. Scammers act as real estate agents or landlords tempting individuals to pay upfront charges. However, some unfortunate tenants may fall into the trap of their attractive offers. Hence, they end up paying advanced payments. However, they do not get the benefits they are looking for and also lose contact with them. So, to ensure you do not fall into this trap, it is recommended to either view their property or else contact the ones who have years of experience in the industry. 

  1. Overseas Property Investment Scams

Another real estate scam in Dubai occurs in the form of overseas property investment. Scam artists take advantage of this international appeal. Thus, they target foreign investors, who have no idea about the regulations and nuances of the local market. It is recommended to approach them with conduct and caution before making a move to invest in the overseas property market. 

How to Avoid Rental Property Scams

Following are some of the ways to avoid real estate property scams in Dubai:  

  1. Avoid Fake Agents or Brokers

The first and foremost thing to do before choosing a property for buying or selling, one should consider performing a background check. You should do it before connecting with any agent dealing with property in Dubai. For this purpose, you can browse handy information on the Internet, if you have not yet figured things out. Another resource you can turn your attention to is asking your family and friends. This way you may not get caught up with the individuals alleged for conducting property scams in Dubai. All the agents and companies dealing with real estate need to register themselves with the Real Estate Regulatory Agency (RERA) in Dubai. 

  1. Always Sign A Written Lease

Before accepting any agreement regarding property buying, selling, or lease ensure that it is written rather than informally addressed. Both lessee and lessor must agree to all the standards and rules while forming a contract. In case you require starting legal proceedings, then this is a perfect opportunity for the latter. 

  1. Do Not Sign Any Contract Without Checking the Property 

To avoid rental property scams in Dubai, you should avoid signing contracts of any form, before checking the property. This way, you will not only know whether the property exists or not but also check the place’s nearby condition. Look for the issues or damages that are present there and report them. Ensure that these issues get fixed before purchasing the property. 

  1. Do Your Research

You can avoid real estate property scams in Dubai if you carry out thorough research first. Browse the Internet to see the feedback and reviews of people on review-sharing websites. This way you can check the rental trends, do your homework, and analyze the market to check whether someone has posted an ad with a weirdly low price. Check the social media accounts and property addresses when you get in touch with an agent.

  1. Refrain if they ask for Upfront Payment.

Start looking elsewhere or simply leave when you see someone asking you to wire any amount or pay upfront. You should first see any proof of the existence of the property, before moving forward. Make sure that the document for property ownership is present. Either you have reached the agreement or signed the contract, avoid paying upfront payment. This is one of the most commonly known real estate property scams in Dubai, one should keep an eye on it. 

  1. Avoid Rushing

Avoid taking influence from a real estate agent who is influencing you to make quick decisions regarding property or payment. This way you will not fall into the trap of rental property scams in Dubai, contrary to the scammers in the real estate market. Take as much time as you need to arrive at the conclusion and avoid making a hasty decision. Rushing may seem like the right choice; however, you may end up regretting your decision and ultimately suffer from it. Therefore, it is better to be safe than to be sorry while dealing with property-related matters. 

  1. Go to Real Estate Exhibitions

Real estate exhibitions are one of the useful ways to have a look at several properties at once. The people participating in such exhibitions are as legitimate as you may come across. Here chances of getting caught in property scams in Dubai are very slim and rare. This is because the builders and developers in the same building are rivals. But they have the skill to recognize whether the party is familiar or not. Several real estate exhibitions in Dubai take place in one year and going in at least one of them will not do you any harm. 

  1. Enquire the Developers

As a developer, satisfying your property needs is a good thing. But there is a slight chance that when you pay these developers may not entertain you or treat you badly. This kind of real estate property scam in Dubai does exist. However, such a scam does not fall in the category of an actual scam. But it does happen nevertheless. 

Initially, developers promise to build your property and accept your payments. But when the months go by, the work either does not get completed or no progress has been made. Furthermore, when you ask them they will only ask for money further. 

  1. Explore Alternative Dispute Resolution 

In case of dispute resolution, choose alternative methods. These may include arbitration or meditation. Such procedures help in potentially settling or helping facilitate negotiation. Thus, no one needs to take the other to the court. Hold a consultation with your lawyer to determine your options that may favor your situation. 

Conclusion

There is a continuous trend for buying or investing in Dubai real estate. However, while purchasing the property, many people become victims of rental property scams in Dubai. Even if the amount may not seem troublesome, it is important to stay vigilant. When such a situation arises, property investors, managers, and owners particularly foreign nationals should report the incident to the authorities immediately. 

Dubai is considered the modern heaven when it comes to real estate hotspots throughout the world. There are chances of getting a higher return on investment, while the real estate in Dubai is also very affordable at the same time. But before you put your money on the line, you should know about Dubai scams and frauds. The chances of scams exist in places where the offer looks both good and attractive. Therefore, it is necessary to be aware of the reality, and this blog will serve as the perfect guide for you.  

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