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The recent past has been inundated with property reforms taking place in Dubai. On a similar note, the unified real estate contracts launched by the Dubai Land Department (DLD) remove any ambiguity associated with the major property transactions of buying and selling.
The main aim of the new contract documents is to ensure clarity in property documentation mainly through the clear understanding and interpretation of articles. The move is expected to help in defining and controlling the relationships between the parties involved in property transactions. Additionally, it also permits the respective parties to complete the registration process without the need to involve a real estate agent.
According to DLD, there are three kinds of unified contracts: one between a seller and a buyer (Form 'F'), another between a seller and a broker (Form 'A') and the third being a contract between a buyer and a broker (Form 'B'). After the parties fill out these forms, and record and document them at DLD, the transaction becomes official.
The unified contract defines the role of each party. Standard contract forms have been previously available, with some level of regulation. But brokers were not bound to follow them as the matter was considered optional. The new unified contract binds brokers, too, and aids in exposing unlicensed brokers.
This type of documentation is another step towards promoting transparency, confidence and consistency within the realty market. In addition, it aids in data gathering of property transactions in relation to the realty industry and economy at large.
The use of unified contract forms came into effect beginning May 2014, and they can be downloaded for use at the Dubai government E-mart website.
• Unified contracts remove ambiguities in property transactions
• They bring clarity in documentation, define stakeholder relationships
• Implementation of unified real estate contracts began on May 1
Source: Arva Shikari, Special to Properties
The writer is a freelancer