It is an exciting time. Your sale and purchase agreement contract (SPA) has been drawn up for a property you are buying in Dubai. The attractive real estate returns and lifestyle on offer are enough to make you want to sign it in a heartbeat. However, it is always wise to not rush into signing your real estate purchase agreement. After all, it is a big investment, whether you buy for investment or residential purposes.
You can conduct checks beforehand to ensure that you get the best for your money and that all information is legal.
So what are the five common mistakes in a real estate purchase agreement that you can avoid?
1.Thinking only two parties are involved
The seller and you will sign the purchase contract. However, it is worth checking whether a property manager, attorney or agent is also involved, which is common. If so, you may want to work directly with the third party, who is usually a local property consultant/agent, as many buyers do, to get the contract moving faster towards completion, but above all, to establish compliance from all sides.
2.Not reviewing the developer’s credibility
It is essential to check whether the property developer is approved by banks for mortgages and has an excellent local reputation to ensure a viable investment. You can also easily check if they are listed/licensed on the DLP ( Department of land and property in Dubai) website. In addition, investigate online reviews from previous customers. How did they feel about the developer? What benefits do their properties offer?
3.Thinking the property is approved by DLP
As with your developer’s license, it is as easy and common to presume a property is approved by DLP. Check if the property/development is registered on DLP’s website or through Oqood’s online service to save legal worries, as they must be registered by law.
4.Not knowing the payment plan
You can continue your checks by ensuring that your payment requirements are clearly outlined in the contract, such as the details of recurring payment dates and amounts that should correspond to the completion of your off-plan property. It is also essential to understand the stage of construction (if you are choosing an off-plan property) and if there’s any delay in their projected dates. This will give you a good insight into the developer’s reliability. At this point, you can also check whether your contract defines or has restrictions on the use of the property.
5.Forgetting to get a copy of the Title Deed
Obtaining your own copy of the title deed is crucial to proving ownership. Also, if you decide to sell your property in the future or lease it out to earn from your investment, this will make the process smoother.
6.Not comparing rates of similar properties
It makes sense to compare the value of your property with properties in a similar spec, before paying a down payment and signing the contract. You want to make sure that you pay a fair market amount for your shiny new property. To ease the time and thought that goes into ensuring a valid contract, contact our team at Mayfair for expert advice and assistance based on your current circumstances and the local Dubai real estate market.