Facility showcases its exciting proposition at the 2024 arabian travel market
uae17 hours ago
Dubai has integrated the real estate online registration system Ejari with a direct debit system of the Central Bank, thus allowing landlords to debit rent from the tenant’s account directly, doing away with the need for post-dated cheques.
But one of the challenges to date with the transition for some landlords to migrate from post-dated cheques to direct debit has been the issues around enforcement in the case of ‘bounced’ direct debit.
Previously, there was a perception that the payment of future rental instalments without a cheque in hand is not protected. But real estate brokers and property management firms said this is not true, as the tenant has to sign the direct debit mandate again – forming a binding, legal undertaking that they will honour the rental payments just the same as a post-dated cheque.
Although the UAE decriminalised cheque bounces in December 2021, the payee of the cheque may file an execution case against the payor, according to legal experts.
In the event of a ‘bounced’ direct debit payment due to lack of funds, the bank will notify the person in question, in the same manner as a bounced cheque, and the documentation, too, can be registered similarly to that of a bounced cheque.
Anisha Sagar, head of property management at Allsopp & Allsopp, said the legal action process will be the same as cheques, which would be routed first with a 30-day notice and then through the Rental Dispute Centre.
“Since the direct debit is approved through the Central Bank and is through the banking systems, we would hope there are more stringent measures to protect both parties,” added Sagar.
Harry Tregoning, founder of Tregoning Property, said the tenant will be contacted by the bank in the first instance of default, and he/she will be given a chance to move funds into the account, as it would more often than not be an oversight. “In the event of non-payment, ‘legal action’ will be taken against the tenant.”
ALSO READ:
Facility showcases its exciting proposition at the 2024 arabian travel market
uae17 hours ago
The mayor of Seoul also extended a cordial invitation to the RTA to participate in the upcoming Seoul Smart Life Week
uae18 hours ago
The country repeatedly urges residents to refrain from owning wild or exotic animals, and imposing hefty fines of up to Dh500,000 for violators
uae19 hours ago
Residents noted that the fire was of such magnitude that it took several hours to extinguish
uae20 hours ago
The record-breaking rains disrupted flight operations and caused the cancellation of over 2,000 flights
uae20 hours ago
Last week, the Dubai Government announced that all operations at Dubai International will be transferred to Al Maktoum International over the next few years
uae21 hours ago
The caracal has now been handed over to a zoo, which will provide the appropriate care and environment for the animal
uae21 hours ago
Developers and community managers conduct free cleaning and repairs for residences, helping areas that have been severely damaged
uae23 hours ago