Licenses issued by DED in April 2012 rises 26% to 1,459

Licenses issued by DED in April 2012 rises 26% to 1,459 Dubai, 20 May, 2012: The number of trade licenses issued by the Department of Economic Development (DED) in April 2012 reached 1,459, an increase of 26 per cent over the same period in 2011. The commercial sector accounted for the highest increase in number of licenses (29%) followed by the professional (24%) and tourism (18%) sectors, compared to April 2011. The increase in licenses relates to a higher level of interest in commercial and professional activities among businessmen and investors in Dubai. Commercial licenses accounted for 74 per cent of the total licenses issued last month, followed by professional (24%), industrial and tourism (1% each) licenses. The total number of licenses amended in April 2012 was 5,251, a 10 per cent increase over the same period in 2011, while the total number of business registration and licensing (BRL) transactions reached 47,082, compared to 39,934 in April 2011, an increase of 18 per cent. The number of reserved trade names reached 5,714 in April 2012, a 58 per cent increase compared to the same period in 2011, while the number of initial approvals reached 2,688, a 47 per cent increase year on year.

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Over 70 families duped by scammers face eviction in Al Nahda

Dubai: More than 70 families in a building in Al Ghusais are facing eviction before their tenancy contract ends following a dispute between the landlord and a real estate firm whose owners have gone missing.

Residents of the new 12-storey Dawn building with 96 units in Al Nahda 2 said they had been given until September 14 to vacate their units or sign a new contract with the landlord.

Most tenants signed their contract and gave one cheque to MFR Properties LLC, who had shown them a letter of authority from the landlord before the agents did a runner. A number of tenants had just moved in to their apartments in March.

“We’re being made scapegoats in a dispute between the real estate agency and the landlord,” said Suresh, an Indian salesman whose tenancy ends in November.

The phone number listed on MFR’s receipts no longer works and XPRESS’ e-mails to their Yahoo account went unanswered.

XPRESS saw an authorisation letter dated July 3, 2011 stating that the Emirati landlord, Madya Butti Mujren Sultan, had authorised MFR to represent her to prospective clients. But the Real Estate Regulatory Authority (Rera) had cancelled MFR Properties’ licence in February following numerous complaints from landlords over bounced cheques.

“When I booked the unit in February,” said Tehseen, a 30-year-old Indian IT executive, “they (real estate agents) asked me to pay either in cash or with one cheque. I couldn’t have suspected that they were up to no good as the rents were still falling then. I was just happy to have found a bigger place for myself and my wife,” said Tehseen, who got married in January in India and moved into his unit in March after taking a loan to pay the rent.Most tenants apparently fell for the scam after they were wooed by the slightly below-market rental the real estate company had asked for the new units. One tenant paid only Dh31,000 for a two-bedroom last February when the average rate for a property of that size in the Al Nahda 2 area is about Dh41,500 as per the Real Estate Regulatory Authority’s (Rera) Rent Index.

It turned out that his happiness was short-lived.

Sandy Cuevas, a Filipino aircraft technician, paid Dh32,000 – plus Dh5,000 deposit and commission – for his two-bedroom unit in February. He said: “I have advanced my housing allowance from my company for one year and paid in cash to the agent.”

Established property agents said the below-market rent was a ruse used by MFR to con both tenants and the landlord – the tenants were asked to pay with one cheque, while the landlord was asked to accept four cheques.

The September 14 deadline was handed down by the Rent Committee, a body ruling on rental disputes under the Dubai Municipality, said tenants. While neither the ruling nor the final date couldn’t be independently verified, tenants are appealing to authorities to intervene.

“We understand that the landlord is also a victim in this fraud,” said Rashid Mohammad, 31, a father of one. “We received a notice from the Rent Committee on June 12, which told us to attend a hearing at 4.30pm two days later. In that hearing, we were told the owner and real estate agent had issues because the cheques given to the owner by the agent had bounced. Then we were told to vacate by September 14 as the contract between the landlord and agent expires on that day,” said the Indian telecommunications salesman who also gave Dh32,000 in February for his two-bedroom unit in one cheque.

Mohammad said he spoke to the owner’s representative after the meeting. “He told us to renew by September 14 and that there’s no other option. This is not fair.”

Maqsood Dalvi, 50, an Indian whose tenancy contract expires on December 31, said: “We are unable to live in peace now that there’s an eviction threat hanging over our heads. We hope the authorities would help us sort this thing out.”

Arvind, a 29-year-old IT executive, moved in from Ras Al Khaimah three months ago. “It’s really unfair for us to be evicted six months into a one-year contract. I had taken a bank loan to pay the rent for the entire year till February 2013,” he said.

WEB FORUM

The MFR Properties scam has thrown up long threads in online forums. One MFR victim wrote in a web forum on February 19: “I paid the total rent in one cheque 12 days back. The owner came to me two days back and asked me to do a new contract with him or leave the apartment. I went to police with all the legal documents and police told me, ‘You are safe. You will stay in the apartment for 12 months’.”

Another tenant said: “My eight-year-old daughter suddenly burst into tears when she heard about this issue.”

XPRESS saw a copy of the tenancy contract that bears the landlord’s name with “Managed by: MFR Properties LLC” next to it written in brackets. The landlord declined to comment and referred us to a spokesperson, who had no comment either.

Registration of tenancy contract obligatory in Dubai from July

Dubai Registration of rental contracts with the Dubai Land Department (DLD) is a prerequisite to accessing other government services starting July 1st, according to a top property regulator.

The Land Department and its regulatory body — the Real Estate Regulatory Agency (Rera) — has been trying to implement the system through a registration portal — Ejari.ae.

Marwan Bin Galaita, CEO of the Real Estate Regulatory Agency (Rera) said: “Registration of residential and commercial lease contracts through Ejari is mandatory and failure to comply may lead to delay in government transactions. A Dh160 fee is chargeable to register a lease agreement with Ejari. The fee is payable by the tenants.”

“The move will help the government to monitor the property market and offer better insights through its rental index while ensuring all tenants pay their housing fees regularly.”

The Ejari registration will be mandatory to obtain utility services. If the contract is not registered, transactions could be delayed at several government departments, principally the Dubai Economic Department and the Residence and Foreign Affairs Department.

Dubai tenants can register their contracts online or through 47 typing service offices .

A total of 199,663 leased properties in Dubai are registered in Ejari and expecting to the number to get bigger.

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Expat-sponsored housemaids in UAE must renew ID cards every year

Those sponsored by Emiratis will get two-year visas and ID cardsHousemaids sponsored by expatriates in the UAE will receive identity cards with one-year validity, according to a top official.
Dr. Ali Mohamed Al Khouri, Director-General, Emirates Identity Authority (Eida), said ID cards must be renewed every time residency visas expire. 

While employees of federal institutions get a three-year visa, private sector staff get only two-year visas. And their ID cards will also hold respective expiry dates, he said. 

Explaining ID card validity terms for domestic helps, Al Khouri said housemaids working for Emirati sponsors will get a visa for two years and, therefore, their ID cards will need to be renewed every two years at a cost of Dh200. 

However, housemaids sponsored by expatriates will get a visa for one year and their ID cards must be renewed each year at a fee of Dh100. 

When reminded about the added cost to sponsors, Al Khouri said: "The operational cost of one ID card is more than Dh200. Plus the cost of staff, building and state-of-the-art techniques involved in the process...all these are borne by the government."

Speaking of the benefits of ID cards, Al Khouri said residents will realise its importance in the coming months. 

According to the Chamber of Commerce and Industry of Abu Dhabi, currently five per cent of the total population comprise housemaids. 

And 80 per cent of them are Filipinas and Indonesians.

Tenancy contract for visit visa in Dubai, but not Abu Dhabi

Some residents claim they are not asked for the document even though they have itDo you need an attested tenancy contract when applying for a UAE visit visa?

In Dubai, it is mandatory, but Abu Dhabi says no need for now.

A call centre executive at the General Directorate of Residency and Foreigners Affairs-Dubai told Emirates 24|7: "It is 'mandatory' to provide an attested tenancy contract even if one was applying for a visit visa.

"It's a new rule. You have to provide us with a tenancy contract.

"It should be attested by the Land Department if you are staying in Dubai, or from the respective municipality if you are staying in any other emirate," the executive said.

She added: "We just need the contract and we are not looking at the size of the apartment."

A call centre executive from Abu Dhabi Systems and Information Centre told this website: "For now, you don't require to produce an attested tenancy contract."

Mahesh D, who went to apply for a visit visa, at the DNRD's Jebel Ali branch on June 14th, said: "On the phone they informed me to bring an attested copy of my tenancy contract, but at the immigration office I was never asked for one.

"When I inquired with the officer if he wanted to see my tenancy contract, he simply said 'You don't need to provide a tenancy contract for visit visa'."

He adds: "It was not money but time spent in going to the land department and standing in the queue to get my tenancy contract attested.

"If I had the right info, it could have saved my time."

Mina Saheel, who works in Dubai, said she also wasn't asked to provide the tenancy contract.

"I went to apply for a visa for my parents and I got it immediately. No official did ask me for my tenancy contract."

On June 17, Major General Nassir Al Minhali, the Ministry's Assistant Undersecretary for Naturalisation and Residency, was quoted by Al Khaleej, an Arabic language daily, saying that Abu Dhabi and all other Emirates will soon be enforcing the new rules stipulating expatriates seeking to have their residence visas renewed to submit tenancy contract with their application.

Foreign bachelors must present documents verifying their residence along with their visa renewal application even if they work in one emirate and reside in another.

The newspaper quoted the officer saying that the decision, which was temporarily suspended last week, does not target property firms or any other party, describing it as a "security, service and administrative" regulation aimed at serving the UAE's interests.