Today's contributor, dubbed "Xiu Fen" in Dubai, shared a rather disturbing experience she encountered during her rental process with Fat Bro. After carefully listening to her account and consulting with professional real estate agents, we've collectively reached one conclusion: Wow, this move is seriously sneaky!
Xiu Fen and her husband were renting in Dubai from a local landlord who owned an entire building. Due to the large number of properties, they were mostly managed by agencies, and Xiu Fen dealt directly with one. They agreed on a rent of 41,000 AED per year.
But during the contract signing, a sneaky move was made. Though they agreed on 41,000 AED, the contract stated 47,000 AED, with a discount of 6,000 AED. Regardless of what was on the contract, they would pay the agreed-upon price, so Xiu Fen signed without fully understanding the difference between "Contract Price" and "Actual Contract."
This led to a confrontation between Xiu Fen and the landlord almost three months later!
Xiu Fen shared this with Fat Bro last night, and after racking his brains all night, Fat Bro finally figured out the whole situation and laid it out for everyone.
The benefits of this discounted contract operation:
1. Xiu Fen signed a contract for 47,000 AED with a 6,000 AED discount for the first year. This means that if they renew, the landlord has the right to offer any discount, or none at all, effectively bypassing Dubai Land Department's price increase limit.
2. According to Dubai law, landlords must give tenants at least 90 days' written or emailed notice if they decide to increase rents or not renew the lease. But if they sign a discounted contract, the landlord can easily overlook this notice requirement.
3. If tenants refuse to renew, they must notify the landlord at least 4 months in advance. Otherwise, they risk losing their security deposit and being sued for two months' rent.
Additionally, if tenants exceed the lease period by a day, they may be automatically renewed at the contract price.
4. In case tenants forget to negotiate or challenge the renewal price before the lease expires, they could end up owing the full contract price if they stay even one day beyond the lease term.
Most Chinese people prefer avoiding trouble, so they might accept the contract price hike or lose some rent plus two months' rent. Alternatively, they could end up owing a full year's rent and facing legal action, unable to leave the country.
Xiu Fen, however, wasn't one to be trifled with. She preemptively discussed future rental terms months in advance and promptly filed a complaint with the Land Department upon learning of the substantial price increase.
However, the department's email, though merely a coordination email, had no legal effect. Upon receiving it, the landlord refused and counter-sued Xiu Fen. |
Xiu Fen emphasized to Fat Bro that although she was in communication with the landlord at the time, as she didn't formally request termination or other demands, the Dubai Rental Committee ruled against her without a hearing, ordering her to pay the landlord for the first quarter at the contract price.
If not for Xiu Fen's proactive appeal and efforts to resolve the issue within the 15-day appeal period, she could have been stuck with this contract. Despite her strong efforts, the rent still increased by 10%.
And thus concludes this saga!
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