TikTokers gather “godfathers” to rent apartments and escape from their victims

Recently, housing seekers in various regions of the country monitored the spread of misleading advertisements for residential units for rent on social media, promoted by brokers who are not licensed to practice real estate brokerage activity, and demanding a commission of 5% of the rental value, which made some people victims of fraudulent operations, when they transferred sums of money to the brokers in order to reserve the residential unit.

Victims of this type of fraudulent method revealed to Emirates Today that they fell into this trap, when they spotted advertisements on social media platforms, especially TikTok, for apartments available at reasonable prices with videos of the apartments. Each of them paid a deposit ranging between 500 and 1,000 dirhams, and they were unable to recover it later, due to the procrastination of the unlicensed broker who blocked their numbers from his contact list.

The state courts considered several cases related to real estate brokerage, in which they rejected the claims of unlicensed brokers for the commission required when selling and renting real estate units, due to their lack of a license to practice the profession.

For his part, lawyer Ali Khader Al-Abadi warned individuals searching for residential units for rent against dealing with misleading advertisements on social media, or dealing with brokers who are not licensed to practice the activity, and only deal with approved offices in the country.

In detail, housing seekers reported that they resorted to dealing with brokers who publish videos and pictures of residential units for rent in different regions of the country, with some of them requesting that sums of money be transferred to their accounts or received in cash on the street in exchange for reserving the residential unit and arranging an appointment with the owners of these units.

Attractive prices

Some of them reported that they lost sums of money that they had paid to unlicensed brokers as a deposit to reserve the residential unit, due to their fear of losing the residential unit, which ultimately prompted them to file complaints against the fraudsters.

They confirmed that unlicensed brokers exploit the need of individuals and families searching for suitable housing, and offer housing units at attractive prices on social media, and demand the transfer of sums of money in order to reserve the housing unit. They later discover that they have fallen into a scam, as the fraudster turns off his phone and disappears.

incident

One of the victims (M.A.) said that he watched a promotional video for an apartment in one of the northern emirates, where he actually lives, and contacted the owner of the advertisement, so the latter told him the details and agreed with him to rent it.

He added that the broker asked him for a deposit of 500 dirhams, to ensure the seriousness of the reservation, so he transferred the amount to him and waited for the procedures to be completed, but the broker delayed him and gave him several excuses, then completely stopped answering his calls.

He pointed out that he discovered that he was not the only person exposed to this type of fraud, but that there were others who paid the same broker, and in the end all of them lost the deposit they paid, while one person got the apartment, and was ready with the full amount required for rent, whether in cash or through bank checks.

Brokerage issues

The state courts heard several disputes regarding real estate brokerage, as a court ruled in one case obligating a real estate broker to return the amount of 100 thousand dirhams he received in exchange for part of the commission for mediating the sale of a plot of land.

The court indicated that the person convicted does not have a license to practice mediation from the competent authority, which legally results in him not being entitled to any fees, profit, or reward for any work he performed.

In a second case, a court ruled to oblige a broker to return 40,000 dirhams that he obtained in exchange for his mediation in the sale of a property. The court indicated that the defendant, at the time of purchasing the home, did not hold any active commercial license that would allow him to carry out mediation and brokerage work.

Broker’s job

In the merits of some cases, the courts have confirmed that the “broker’s mission,” according to Articles (254 and 256) of the Commercial Transactions Law, does not end, and he is not entitled to his remuneration for his mediation, unless his mediation results in the conclusion of the contract in which he mediated between the buyer and the seller. This is because what is required of his entitlement to remuneration is the conclusion of the deal between its two parties, and the submission of written evidence or the contract concluded between the two parties to prove its existence, noting at the same time that assessing whether the transaction was concluded as a result Whether or not the broker seeks is within the jurisdiction of the subject court.

Misleading advertisements

For his part, lawyer Ali Khader Al-Abadi warned individuals searching for residential units for rent against dealing with misleading advertisements on social media, or dealing with brokers who are not licensed to practice the activity.

He pointed out that there are victims who fall into real estate fraud operations, due to their rush and fear of losing the residential unit, so they give the broker a sum of money, as a deposit to reserve the residential unit, without ensuring that he is authorized to rent it, or that he holds a permit to practice the real estate brokerage profession.

He stressed the importance of taking caution before paying any sums of money to real estate brokers who publish advertisements on social media, and the necessity of dealing only with approved real estate offices, in a way that guarantees the rights of individuals in the event of any legal disputes in the future.

He pointed out that there are advertisements promoting housing units for rent at reduced prices to attract victims, or housing units that are irregular and in violation of requirements, and these are matters that full precautions must be taken before dealing with them.

Practicing real estate activities

He pointed out that local laws stipulate that no person may practice any real estate activity before obtaining a license, as the relevant authorities set controls, conditions and requirements for obtaining a license to practice the brokerage profession, such as: submitting the necessary documents and passing the specified training courses, in a way that ensures that the brokers working therein enjoy competence and credibility in accordance with the applicable standards.

He stressed that the Commercial Transactions Law, in Article (252), defined brokerage as a contract under which the broker undertakes to a person to search for a second party to conclude a specific contract and to mediate in contract negotiations, in exchange for a fee. It stipulates that the broker is not entitled to a fee for his mediation unless this mediation leads to the conclusion of the contract between the two parties. The contract is considered concluded when the two parties agree on all the essential issues in the contract. The point is whether the broker is entitled to his reward if the contract is concluded even if it is not implemented unless it is implemented. If agreement or custom stipulates otherwise.

One of the victims:

. Brokers collect from each victim a deposit ranging between 500 and 1,000 dirhams, and in the end they block their numbers from being contacted.

Ali Khader Al-Abadi:

. There are victims who fall into real estate scams, due to their rush and fear of losing the housing unit.