UNIFIED REAL ESTATE CONTRACTS IN DUBAI
Authored by: Philip Sequeira
The Dubai Land Department ("DLD") has recently announced the launch of unified real estate contracts. The use of the contracts will become mandatory from 1 May 2014 for re-sales of all off-plan and completed property transactions in the Emirate of Dubai.
We understand the use of the unified contract form has not been codified as law however is a policy the DLD has implemented.
The DLD has indicated the new contracts have been designed to avoid problems that arise from the misinterpretation of documents and to facilitate and accelerate property transactions and the transfer and registration process with the DLD.
How will this affect you?
Our contacts in the property registration department at the DLD have indicated that the unified contract is not intended to replace the terms and conditions of a sale and purchase agreement that a buyer and seller may commercially agree.
The unified contract is to be used as cover pages to the sale and purchase agreement. The parties remain free to agree on additional terms and conditions they may deem necessary for their specific property transaction and these will be annexed to the unified contract form.
We understand from the DLD that the form of unified contract comprises three separate template documents Parts A, B and F.
- Parts A and B are to be entered into between the seller and the buyer respectively with their property agents/brokers (if applicable); and
- Part F is to be entered into between the seller and the buyer.
The form of unified contracts are intended to identify the main commercial terms to the brokerage arrangement (Parts A and B) and the property sale transaction (Part F) including the seller and buyer's details, particulars of the agent, the property the subject of the sale, commission payable to the broker(s) and the purchase price for the property.
We understand the purpose of adopting the unified contract is to promote a degree of consistency amongst the various forms of sale and purchase agreements which are in the market and in particular, will facilitate efficiency during the property transfer process at the DLD.
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Hadef & Partners is a long-established full service UAE business law firm, founded in 1980 by Dr Hadef Al Dhahiri, the former UAE Minister of Justice.
The firm is one of the oldest and largest in the UAE, with offices in Abu Dhabi and Dubai and has a deep understanding of the laws and traditions of the region.
Further information on the firm can be found on our website: www.hadefpartners.com
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