(MENAFN- Gulf Times) Many residents have accused real estate brokers of continuing to take customers for a ride by exploiting the prevailing housing scenario.
Many of these agents are not legally authorised to work as realty brokers, say sources, adding that such elements often act as sub-agents and end up fleecing potential customers.
While only the owner of a property or a person/firm authorised by him/her is entitled to deal with a potential client, the situation is different in reality. There are property deals, according to the sources, which involve brokers at multiple levels - most of whom are not authorised agents.
One of the main grouses against the brokers is that they ask for steep - often non-negotiable - commissions.
While many residents say they don't mind giving commission to an authorised broker or realty firm, they feel paying such big sums to a dubious agent or sub-agent, who does not have the required licence and also does not operate from a proper office, is unjustified.
An expatriate said when he questioned an agent - who had put up an advertisement on a popular website for renting a villa in Al Thumama - on the issue of commission while looking for a house recently, the latter told him that people like him (the broker) have been involved in the "business" for long and have a "fairly good track record" in real estate activities.
Asked if he would negotiate for a reduction in the rent, the agent said he had no direct contact with the owner and would discuss it with the person who represented the owner. "However, you should give 15 days' commission directly to me," he was quoted as saying.
Another customer who approached an agent was shocked when the latter told him that the property in question would be shown only if he paid a commission.
Many residents blame such agents for the current situation, in which finding a decent accommodation at an affordable rate has become rather difficult. "Even if a landlord has no plans to increase the rent, the agents unnecessarily interfere (rather than intervene) so that the rent is hiked and they benefit from it somehow," said a tenant of an apartment complex in Najma.
Recently, a city resident who was looking for an accommodation attributed the current trends among a section of brokers to greed. He also pointed to the dangers of striking dubious deals that involve brokers, including vacating a house at short notice due to factors such as illegal partitioning.
"While properties advertised in newspapers are generally in good shape, a large number of ads appearing on websites feature houses that are in poor condition or involve questionable deals. Such cases present a huge risk for the inhabitants."
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