The Sales and Purchase Agreement (SPA) plays a central role in the business with Property in Dubai and differs from purchase contracts in other countries in a number of important respects. As an official document of the Dubai Land Department, it follows strict guidelines and standardisations.
Essential components of the SPA:
- Detailed identification of the contracting parties
- Precise description of the property with all technical details
- Agreed purchase price and payment plan
- Handover date and conditions
- Warranties and guarantees
- Regulations for default or breach of contract
Special features in Dubai:
In Dubai, the SPA must be submitted to the Dubai Land Department be registered. This serves the purpose of legal certainty and is a prerequisite for the subsequent transfer of ownership. Registration is carried out via the OQOOD-system for properties under construction or directly with the DLD for completed properties.
Important information for buyers:
- Have the SPA checked by a local legal expert before signing it
- Pay attention to the correct wording of the payment terms and handover dates
- Make sure that all ancillary costs and fees are listed transparently
- Check the exit clauses and possible contractual penalties
The completion of a SPA in Dubai typically takes place in several steps:
- Negotiation of contract terms
- Preparation of the standardised contract
- Examination by both parties
- Signing before a licensed real estate agent or lawyer
- Registration with DLD
Please note that in Dubai for the SPA special fees which typically amount to 4% of the purchase price. These are due at DLD together with the registration of the contract.
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