You’ve got the right property? and you’re excited to own a new property? That is great, but hold on, there are very important legal points must be checked before signing property sale and purchase agreement (SPA), otherwise consequences of that will be terrible, therefore you must consider the following:
One of the most important thing you have to know is that legal contracts are not what seem to be, as contracts legal drafters redefine words and encode terms to have different meanings other than what they are, therefore, you should not sign until your lawyer reviews all SPA terms and conditions such as “Contract termination Terms”, “Payment Terms”, “Handover Terms”, “Jurisdiction and Governing Law”, “undertakings”, “Ownership Transfer” and others, which carry legal risks that must be avoided.
The main problem is that these issues of non-reviewed SPA appears when real dispute arises, and suddenly you will find yourself wasn’t really understand what you have signed in, then reactively you find yourself forced to deal with all raised problems, legal issues, legal risks, and costs, which could be avoided if the SPA proactively been reviewed by your lawyer to detect all these issues from very beginning and remove them.
Therefore, always hire a specialized lawyer to review your SPA before you sign it, yes could cost small fees but it’s lifesaving, spare you time, money, and effort that may wasted in litigation process before courts later if you ignore this advice.
Legal due diligence is procedures carried out by the specialized real estate lawyer in order to verify that you are entering into the right agreement with the right person, by verifying legal validity of all parties to enter into such contracting including seller, buyer, developer, broker, agent, authorized signatory, and the property itself, as well as verifying all contracting documents, powers of attorneys, IDs, title deeds, and property documents, in addition to that, a specialized lawyer verifies licenses of developer, project and all related documents.
Therefore, always let your lawyer run the legal due diligence by requesting documents and papers from all parties to verify their validity and legal capacity to enter into a contract, as you definitely do not want to discover later that you have entered into invalid contract with person without legal authority and capacity.
Getting legal advice is always a smart move before signing the SPA, as said “Advice is ever wanted”, because once you signed the SPA you become legally bounded by what you have signed, therefore, always get your legal advice, before or after signing, you want to refrain the payment, a dispute arises between you and the seller, you default on payment, seller refuses to transfer ownership or any other contractual issues.
As one of the best leading law firms in UAE, Alramsy Advocates has team of lawyers and legal consultants specialized in properties and real estate law, You can contact them through the website: www.alramsyadvocates.com, e-mail: firstname.lastname@example.org and on the phone: +971 42720066
Call us on 0562227755 or visit us for a completely free consultation. Or, you can fill the below form and we will contact you as soon as possible.