If you have reached a decision whereby you decide to sell your property, there remain a few matters that must be ensured before going ahead. Considering these points is vital to a successful transaction:
Memorandum of Understanding
The Memorandum of Understanding (MOU) is an agreement between the seller and buyer. It does not have binding power of a full contract; however it regulates the basic conditions of a deal.
It is imperative to clearly state the conditions of the agreement. This can be done by clarifying fee payments at the outset:
Cancellation fee – Must be paid when one party changes his/her mind pertaining to the completion of the deal. The fee amount can differ from case to case, usually depending on the agent.
Transfer fee – Must be paid each time a property sale takes place. Checking this fee is important due to the various rates charged by different developers.
Additionally, condition of transfer must also be considered. Factors such as the date, place and hand over process should be declared. The date of transfer is fixed whereas the hand over process can only go ahead once issues such as payment have been finalized. In the circumstances of selling a property ‘ahead of payment completion,’ this can be done without difficulty as long as the first two installments have been paid. However, this again differs from developer to developer and should be ascertained beforehand.
Transfer fees
A transfer fee will be required for transferring of a property to another person, which has to be paid in most cases by the buyer directly to the land department.
Landlords are required to bring a No-Objection Certificate (NOC) from the developer before transferring the property. They then pay a 1% transfer fee to the Dubai Land Department.
It is advisable to check with your developer and the land department for the latest information regarding transferring your property. You can also obtain further information from the Real Estate Regulatory Authority (www.rera.ae) or our office info@choicegroup.info
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