10 Things You Must Check Before Signing a Dubai Property Sale Agreement

10 Things You Must Check Before Signing a Dubai Property Sale Agreement

If you’re planning to buy real estate in the UAE, there are 10 things you must check before signing a Dubai property sale agreement. It can be an exciting process, but at the same time, it is rife with legal and financial information that can make or break your investment. 

At VGT Real Estate in Dubai, we will support you throughout this journey with a suitable level of confidence. Is it time to act smartly? Go ahead and protect your buying.

1. Title Deed Verification

It is always best to verify the authenticity of a property’s title deed before becoming involved in a sale. It is an official document that proves ownership and must be registered with the Dubai Land Department (DLD). 

Demand a copy of the same from the seller, and it must be free of encumbrances, controversies, or third-party claims. Never sign anything before the title is complete.

2. Seller’s Legal Authority

Ensure that the seller has the legal right to sell the property. When you have an agent or a representative, request a Power of Attorney. Many buyers overlook this check, which can lead to fraud or late registration. Identify the seller by their Emirates ID or passport.

3. Oqood or Title Transfer Record

In off-plan property, the Oqood certificate replaces the title deed. After payments, it is imperative to ensure that the property is registered in your name with the DLD. This secures your rights during the erection of the building.

4. Developer Approval

When purchasing a freehold property within a freehold area or an off-plan project, ensure the DLD approves the developer and that their project is registered under RERA. Buying products from unregistered or blacklisted developers may lead to significant problems in the future. Verify the project registration on the DLD website.

5. Payment Schedule and Method

Check the payment plan properly. It must be explicitly stated in the agreement, including milestones, due dates, and the ultimate settlement terms. Avoid such unspecific words. When in Dubai, post-dated cheques or bank transfers should be used. They should know their method is in legal compliance with practices and documented in writing.

6. Service Charges and Maintenance Fees

Always get an annual service charges breakdown. These charges vary depending on the type of property and may include community fees, which are paid to a developer or an Owners Association. Find out what you pay, including security, landscaping, etc., and whether there are any outstanding obligations from the previous owner.

7. Mortgage Status (If Any)

In the event that an existing mortgage is on the property, the seller should clear it before selling the property. You must request that the bank issue a liability letter stating the outstanding balance and the clearance period. This can slow down the registration process or cause legal issues for the buyer.

8. Completion Date and Handover Terms

Under an off-plan purchase, the delivery date and conditions of delivery for the project should be indicated. This is likely to cause delays, which should not be the case, as RERA regulations require developers to adhere to the promised date of completion. Put in the clause of penalty or refund condition in the sale agreement to remain secured.

9. No Objection Certificate (NOC)

The seller should acquire the NOC of the developer before transferring ownership. This will confirm that there is no howl regarding payments. The sale will not be proceeded with by the DLD without an NOC. Request this before carrying on with any transaction.

10. Final Contract Review

Last but not least, please consider consulting a lawyer regarding the Dubai property sale agreement before signing it. Ensure that it contains all the terms agreed upon, price, schedule, mode of payment, state of the property, and consequences of breaking them. Solicit the help of a lawyer in case you are uncertain about a clause.

Final Thoughts

Investing in real estate in Dubai is a significant move; nevertheless, with proper information, it can be a worthwhile investment. These 10 things you must check before signing a Dubai property sale agreement are your safety net against costly mistakes. 

If you require professional assistance to bring everything in order, contact VGT Real Estate in Dubai, your trusted advisor in the UAE property market.

Are you in need of professional help when buying a property? Come on, let’s talk today!