5 Tips to Avoid - Dubai Real Estate Scams

 

Dubai annually attracts a large number of investors from all over the world. For entrepreneurs, for real estate investors, many consider the city a safe place for business. In addition, the real estate industry in Dubai has been witnessing steady growth over the past few years. As a result, Dubai has also become a magnet for scammers, especially in the property sector.

It is necessary to identify the Dubai real estate scammers and to avoid getting into the trap. Let's find out how you can be safe from people who work to extort money from you through illegal and unethical methods.

Dubai Property Scam - 5 Tips to Avoid Them

Look For RERA registration

The Real Estate Regulatory Authority (RERA) of the Dubai Land Department oversees the industry in Dubai. All brokers and developers are required to be registered by RERA. You can check for RERA registration on its official website. Remember that unless your agent is on the website, it is wise not to engage with that person for any property deal. Scammers may also have fake IDs.

Price estimate

If an offer sounds exceptionally good, it is probably not right. One common strategy that scammers adopt is enticing investors and homeowners to have unrealistic deals. Therefore, it is always wise to consult a reliable RERA-licensed real estate broker. They will be able to estimate the value of your property. If you want to buy, understand the market and average price in the area for that type of property.

Official contract

Another way to avoid a real estate scam is to make sure your contact is legalized. If you are renting a property, you should register your lease with the Ejari of Dubai Land Departments. If you wish to purchase a property, be sure to make an officially recognized and valid agreement between you and the agent for the service that provides the brokerage. You may also need a format agreement between you and the developer in some cases.

Check payments

Many real estate scams have one thing in common - cash-only transactions. Scammers will not want to leave any trace that will take them back. Therefore, most of them will ask you to pay cash. There is nothing wrong in stressing that you want all transactions paid via check or bank transfer. Likewise, make sure that any advance payment you make is always documented and accepted by the agent.

Property search

If you are looking for a property by yourself, make sure that you only use trustworthy listing portals, such as ProsperityDubai. They will be regularly checked on their listings to avoid property rental scams and fake listings. As a result, you can perform initial filtering on the portal. However, make sure that you check for any red flags in the listing. Always assume that scammers are clever. In this way, you will learn to outsource them.

The perfect way to ensure that you do not fall prey to any Dubai property scam is to make sure that you have a reliable real estate agent. A RERA-licensed broker with a good reputation and industry knowledge will definitely guide you through the right path.