Demolition is a valid reason for eviction, but proper notice must also be given. Sarah Dea / The National
Demolition is a valid reason for eviction, but proper notice must also be given. Sarah Dea / The National
Demolition is a valid reason for eviction, but proper notice must also be given. Sarah Dea / The National
Demolition is a valid reason for eviction, but proper notice must also be given. Sarah Dea / The National

Mario Volpi: Dubai shop owner faces eviction after 28 years as new owners want to demolish building


  • English
  • Arabic

The owner of my shop's building has passed away and now the landlord's heirs are the owners. They sent me a notice of eviction, which was not validated so I refused it. I have been in my commercial property in the retail market for the past 28 years. The new owners (the heirs) want me to vacate the building so that they can demolish it. They have managed to evict 90 per cent of the building already. I filed a dispute last year at the Real Estate Regulatory Agency (Rera) and submitted my rental cheques there too. This year I have also submitted my cheques to Rera. Now the owners' legal team has reached out to me and asked me to vacate; they have sent a demolishing permit and drawings of the new building. But my case is still pending, so don't they need to serve me a new 12-month eviction notice? Or does the old (non-validated) notice still serve? It is not easy for me to vacate immediately and it will cause a huge loss of business. If I agree to leave, they have promised me a shop in the new building at a new rental rate; this will be much higher than my existing rent. Am I eligible for any loss of business during this period? Or would you advise I stay in the old building as long as possible? SK, Dubai

A proper 12-month notice to vacate a property sent through notary public or registered mail is the only legal way to inform a tenant. If the old notice has not been sent in this way, then they will have to send out a new 12-month notice. The reason for eviction (because of demolition) is the landlord’s legal right, however the correct written permissions from the competent authorities also have to be shown.

Anything that you agree with the landlord has to be in writing, including what is to happen after the new building is built.

In any case, as a building does not spring up overnight, I suggest that the landlord compensate you for the period while it is being built by offering you the new shop either at the same rate of rent or at the very least agree to only incremental increases that will allow you to be able to pay these over time, rather than a large sum over and above what you are paying now.

In the end, it’s all about negotiating. If you are prepared to help him now, he should recognise this by helping you in the future.

I have a tenant on a one-year tenancy agreement that was signed in June 2016 and all the rent cheques have been paid. The tenant lost his job in December and notified me with a three-month notice to vacate. The contract doesn't have any early termination clause and there are no penalties mentioned either. The deposit will be returned to him upon clearance of bills and return of keys at the end of the tenancy term. I have offered to either find him a tenant from his end (a colleague or a friend) or to list the property; then if a new prospective tenant moves in on the same terms I will refund part of the unused rent. There is no progress on any new tenant yet, but the property has been listed for viewings. Am I obliged to return part of the rent that he is claiming on the basis of his job loss? MR, Dubai

If the contract does not mention any early termination clauses, the result to find a solution lies with mutual consent. Legally the tenant has signed up for the full-term agreement, and if during this time they are not able to fulfil the contract it will then be up to both of you to find a solution.

Legally you would be entitled to keep all of the rental monies, but given that the tenant has lost his ability to pay through job loss, morally this would seem harsh if you did keep it. I stress, however, that if you did it is not illegal.

I see the solution in finding another tenant, but as you say although it is being advertised, no new tenant has been found. I would therefore suggest lowering the asking price to attract new interest and then negotiate that the difference in rent be made up by the outgoing tenant. This would seem a fairer way to resolve rather than just keeping the rest of the rental monies.

Mario Volpi is the chief sales officer for Kensington Exclusive Properties and has worked in the property industry for over 30 years in London and Dubai. The opinions expressed do not constitute legal advice and is provided for information only. Please send any questions to mario.volpi@kensington.ae.

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The 12

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Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur

Italy
AC Milan, Inter Milan, Juventus

Spain
Atletico Madrid, Barcelona, Real Madrid

Ipaf in numbers

Established: 2008

Prize money:  $50,000 (Dh183,650) for winners and $10,000 for those on the shortlist.

Winning novels: 13

Shortlisted novels: 66

Longlisted novels: 111

Total number of novels submitted: 1,780

Novels translated internationally: 66

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How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

Ferrari 12Cilindri specs

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Abu Dhabi GP Saturday schedule

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2pm Formula One final practice 

5pm Formula One qualifying

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City's slump

L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
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Citadel: Honey Bunny first episode

Directors: Raj & DK

Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

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Sunday: Chelsea v Southampton, 6pm (UAE)

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While you're here
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When: September 16-23

Where: Insportz, Dubai

Indoor cricket World Cup:
Insportz, Dubai, September 16-23

UAE fixtures:
Men

Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final

Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final

Concrete and Gold
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Director: Shady Ali
Cast: Boumi Fouad , Mohamed Tharout and Hisham Ismael
Rating: 3/5

Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

ELIO

Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett

Directors: Madeline Sharafian, Domee Shi, Adrian Molina

Rating: 4/5

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