The Dubai Land Department (DLD) has made it mandatory for buyers, sellers and brokers to use standard contracts for all resale transactions. The new policy was implemented this month as a step to weed out rogue practitioners from the market. The DLD has also issued three standard contracts: between a seller and buyer (form F), seller and broker (form A) and buyer and broker (form B).
The new procedure allows the DLD and its nominated agents to handle more transactions per day and ensures the efficient transfer of property without the need for amendments at a later stage, said Philip Sequiera, Senior Associate at Hadef and Partners.
The standard contracts also ensure the customers are aware of the documents that need to be signed when executing a real estate transaction. Customers would also be alerted easily to dubious deals or documents asked by unscrupulous agents or brokers.
However, some agents say form F is not detailed enough to cover all eventualities and protect the interests of both parties. Hence, these agents say they will continue to use their own memorandum of understanding (MoU) format as an addendum.
Mario Volpi, Managing Director at Prestige Real Estate, concurs with the agents: “There will be two MoUs used in the property transaction that gives more work for the agents, since they need to make sure they have a standard form ready and also need to cover the buyer and seller by continuing their own MoU format, which will be deemed as an addendum.”
Source: Hina Navin, Special to PW