Dubai Land Department (DLD), and the UAE Central Bank have signed an agreement that allows for freezing of the bank account of a tenant if his/her rent cheques bounce, Emirates 24|7
“After the judgment is passed by the RDC, it will be informed to the Central Bank, which will pass the information to the banks. It could also lead to blocking of tenant’s bank account,” a DLD spokesperson said.
“This process will now take two days instead of 60,” the spokesperson added.
When I was tasked to help editorialize the g7p blog for the purpose of giving value added Search Engine Optimization to the g7p interweb, at first I pulled away and hoped someone else from our great team would grab the reigns and lead the charge into the great unknown, I also realized that it is a great challenge to be given such a responsibility.
Now a little about me, for some context to this blog, I am not currently a resident of Dubai, though I am considering coming back, when? If it happens at all, then in the next few months. I am though heavily intertwined with Dubai, I am not an Emirati, but am proud to at times say I am a Dubian, actually I call myself an “ ajnabi born in Dubai”, and trust me when I say there are many of us now in 2016 ( easily 200,000+). Toronto is my current location, half of my 44yrs spent here and the rest mainly in Dubai, and Krakow the spiritual stepping stone between Dubai and Toronto. Yes a very privileged life thanks to my beautiful and loving parents Lucy and Mahir Ghattas. I am a dual citizen of Poland and Canada, I guess I am a citizen of the old Sudan, as I came to Montreal, Canada from Dubai with a Sudanese passport in 1981. Ok enough about me.
This blog entry was due to my receiving in the g7p network mail a story titled “Bounced rent cheque can lead to freeze on Dubai tenant's bank account” from emirates 24/7 news. It was a tough pill to swallow, not from the realtor, property management or property owner perspective, but from the angle of the tenant. Even the timeframe from 60 days to 2 seemed like for sake of transparency and assuring the financial institutions, one forgot in the humanity and realistic logistics of a human, in face of the grinding machine of profit that lacks a shred of empathy to reality on the front lines of such a situation as a rent cheque bouncing. Sure it’ll eliminate confusion and those walking the razor sharp edge of almost pregnant in terms of paying rent, there is no almost pregnant, you either are or not, simple right. I imagined though some poor soul, with grandeur dreams of the La La land dreams of making great riches in their pursuit to working in Dubai, and upon arriving to their new job, are given instruction on renting a 1 bedroom in the Mankhool area for say between 120,000 to 150,000 a yearr, in say 4 cheques. ! First cheque went through, and the tenant enjoys the job that suddenly elsewhere in the world a decision is made to cut the losses and shut down offices in emerging markets, hence company disappears and one day as coming to work, a print out on the door says company closed, 2nd cheque bounces as last pay from employer is delayed including payment for rent due to complications in the finances of the company, hence tenant is burdened with not only having their financial status frozen, but due to the bouncing of cheque possibly thrown in jail until payment is made. Whatever other cheques issued other than the rent cheques will also now bounce creating a spiraling mess, all due to the unforeseen ongoings of a company’s decisions far from Dubai about profit. All the laws in Dubai go through an evolution swinging to extreme ends of each law until finding some middle ground, in this case it favours the property owners that rent their property and less so for the tenants. The only aspect that is good for the tenant is that it is decided fast, now in 2 days as opposed to the 60 days of turtle beauracrtic tape. Bravo e-gov!! Yes property owners are people too, and they can be hurt by many bounced cheques all at once causing property owner to collapse from the heavy burden of non-payment and beauracratic red tape too. So anything that can be addressed to speed up the process to decision making is progress. Ok so I used a worst case scenario, and the system says that there are about 2000+ cases currently ongoing, with such a cut and dry law, this number surely will come down very quickly assuring the market of its stability and soundness. Great, anything that can strengthen the real estate market is a welcome to all that are part of it. Concern though to my fellow brother and sisters that not of their own choosing have fallen into the predicament of bouncing a rent cheque, and especially to people that call themselves “ajnabi” and have no social safety nets, during booms there is very little of this problem, but in the volatile nature in the markets recently can cause suddenly an overflow of humans finding themselves in jail, all due to the pursuit of profit. And hence to the human factor, an amendment will come to this law. The evolution of laws, but time and patience will be needed, until some middle ground will be found that will suit everyone concerned. It is only an opinion, that at this juncture in time, middle ground has not yet been found
- dubai land department
- freezing of the bank account
- bounce rent cheque
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