Ask the Agent - What sort of documents are required after accepting an offer to buy my property?

Ask the Agent - What sort of documents are required after accepting an offer to buy my property?Mohanad Alwadiya, CEO - Harbor Real Estate

- As a new investor venturing into the UAE property market, how do I know if my property consultant is giving me correct information and advice?

If you have the feeling that your property consultant is not representing your best interest, I suggest you have a meeting with him and request a justification and rationale for all of his recommendations and advice. But to ascertain whether his justifications and rationale make sense, conduct your own research so you are able to verify the veracity of his claims and assertions. If you are still nervous about the quality of his advice, then seek an alternative as there are plenty of property consultants who are hungry for your business. And whether you are a newbie to the real estate industry or not, you should take upon yourself the responsibility of getting to know the property industry as you wouldn’t want to risk your wealth or life savings by carelessly venturing into something strange and unfamiliar.

- It has been my plan to work as a real estate broker in Dubai, but I don’t know which company to join.

Have you ever worked in the industry before? To gain the greatest advantage, join a company that will enable you to fast track your learning and gain a greater understanding of what the real estate business is all about because it is not just about buying and selling property. The company you choose should value you and remunerate you appropriately. But they should also be prepared to invest in you by providing training such as being placed on an internal rotation scheme to enable a broader knowledge of the business to be developed, or being given special projects that will facilitate your learning by encouraging you to seek answers and solutions yourself. Companies that invest in high-potential people are typically the ones that succeed. Also, surround yourself with individuals who are passionate about the real estate industry because passion is contagious and it is what sets champions apart. The best of luck!

- Given that the market is still going through a down cycle, would now be a good time to invest in REIT?

There can definitely be some benefits in investing in Real Estate Investment Trust (REIT) during cyclical downturns such as the one being experienced at present. REIT, as a trust company, accumulates a pool of money through an initial public offering (IPO) and buys, develops, manages and sells real estate assets. It allows one to invest in real estate without investing large amounts of capital or devoting a lot of time in directly managing a property portfolio. Investors have the opportunity to buy a unit in REIT which is actually a portion of a managed pool of real estate. This pool of real estate generates income by renting, leasing, selling and financing property, and distributes it to the investors on a regular basis. REIT can provide portfolio diversification because the pooled funds enable the management to operate different types of property assets.

- In Dubai, what types of training are mandatory for new real estate agents?

The Real Estate Regulatory Agency (RERA) and the Dubai Real Estate Institute (DREI) have set a mandatory certification programme for new and experienced agents who wish to work in a real estate brokerage in Dubai.

The DREI also organises license renewal courses and exams along with a very rich variety of career development programmes designed to help elevate the standards of professionalism and effectiveness of brokers in Dubai.

Some of the course areas offered by the DREI include sales and negotiation, customer service, facility management, property inspection, real estate valuation, property management and contracts management.

This is by no means an exhaustive list of the courses on offer.

For more information, visit: http://www.dubailand.gov.ae/English/DREI/ourservices/trainingcourses

- Question of the Week: What sort of documents are required after accepting an offer to buy my property?

The first (and most important) step is to prepare and sign an MOU which contains all the details and timing particulars of the offer. The buyer has to sign the MOU after reviewing its provisions. As with all legal documents, get a proficient broker or legal representative to draft the MOU for you. You also need to sign ''Form F,'' a contract between the buyer and seller. Ensure that the buyer and/or the relevant representative have their respective identification and/or authorisations so payments have been satisfactorily arranged. Step 2 will require the receipt of a ''No Objection Certificate'' from the developer. Step 3 is to pay the final utility bills so that the account is cleared and ready to be taken over by the new owner. If there’s a tenant, you will need to sort out any outstanding rent or payment details. Step 4 will require you to go to the Dubai Land Department offices or a trustee registration office together with the buyer and all relevant parties, and conduct the final transfer. Transfer of ownership will take place at the DLD with all monies owed by the buyer to you to be presented as part of the transfer procedure.

Although the above procedure appears simple enough, I recommend you engage a professional to handle the transaction process for you. You will be surprised how little issues, many not foreseeable to the inexperienced, can delay the satisfactory settlement of your property sale.

Ask the Agent: Is it mandatory to be present during the registration procedure?

Source: Mohanad Alwadiya, Special to Freehold

The author is CEO - Harbor Real Estate

Send in your property issue-related questions to be answered by industry experts, mentioning 'Ask the Agent' in the subject line, to: properties@gulfnews.com

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