Stay One Step Ahead! Conduct Due Diligence Before Buying Property in UAE
Due diligence is commonly characterized as intensive exploration before signing an agreement, particularly one including the sale and purchase of land or any property.
Due diligence implies playing it safe, auditing and examining documents, performing estimations, insurance protection, performing reviews, strolling the property, and basically getting your work done for the property BEFORE you really sign the sale and purchase agreement. Property lawyers of Dubai commonly term due diligence as a primary step taken by any individual willing to own a property in Dubai or any other Emirate in UAE.
Due diligence mostly involves reviewing the tittle deed of the property for ascertaining the owners of the property, mortgage agreements If signed, accurate specifications of the property, maintenance and financial documentation of the property to ensure a safe purchase. The purchaser can decide to not continue with a purchaser for any or no explanation whatsoever BEFORE there is a completely executed agreement. Should the purchaser decide not to continue with the exchange (unless there exist a pre-signed document), the parties no longer have any commitment to one another.
Research and Research!
The first and most evident step is to search for a property title affirming the seller’s proprietorship. The potential purchaser must demand a duplicate of the property title deed and site plan from the property developer or the seller. A title search at Dubai Land Department will affirm the dealer’s responsibility for property and any current home loan over it, which could forestall the deal. Dubai Land Department will likewise help distinguish whether the property is connected to a court request, if there is any freezing request on the property and give affirmation on the property’s details. Nevertheless, in order to conduct a proper due diligence over the tittle deed of the property, one must a have a proper power of attorney from the seller or the property developer to seek details from the land department and can also seek assistance of Best Lawyers of Dubai in order to assist you in every step possible.
Purchasers ought to likewise utilize an outsider authorized specialized investigation organization to confirm the proper measurements and dimensions of the property as the venders’ case and guarantees no deformity in the property. When a purchaser has done these due diligences with the assistance of outside parties, he can continue to draft an understanding which is commonly called a memorandum of understanding (MoU) to express the key terms of the property exchange. In Dubai, the parties are compulsorily required to sign and record Form – F to Dubai Land Department and any extra terms and conditions in the MoU ought to be appended as an addendum to Form F.
Due diligence can help and gives some declaration and certainty that the property has an unmistakable title, it isn’t impossible for the seller to make any adjustments to the property after the completion of due diligence by the imminent purchaser and the purchaser ought to confirm the findings of the examination by conducting due diligence on a day closer to the date of transfer to guarantee that the property status stays unaltered and he will really get a free property. Receiving complaints concerning the difficulty in conducting due diligence is what pushes them to appoint the best lawyer of Dubai to assist them in the said procedure.
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ABOUT THE AUTHOR
Dr. Hassan Elhais, along with his team of legal consultants and prominent local lawyers across the UAE, has made a name for himself as a renowned specialist in the fields of civil law, construction law, banking law, criminal law, family law, inheritance law, and arbitration.