Ten factors to consider during negotiations

ONE: PRICE

• Ensure your negotiation strategy reflects: the motives of the seller;
• Level of market demand for this unit or project, so you can define the time frame available for negotiation, without risking losing the deal;
• Market data and information gathered during the CAAD process.

TWO PAYMENT

• Do you have a preferred payment method? Depending on the market, exchanging British pounds to UAE dirhams, for instance, can sometimes be an advantage or a disadvantage. Negotiating a time frame to make payment when rates best suit your interests can make a real difference.
• Down payment and security. How much deposit is required and who is the escrow agent to hold that payment? Is it secured?

THREE: FEES

• Who will pay the brokerage commission and the other related fees, if any? Be aware of market norms and follow them accordingly.

FOUR: LEAD TIME

• Do you need to state a fixed time frame to conclude the transaction or to allow for an extension to the contract – in case, for any reason, it takes you longer to make all the necessary arrangements to finalise the transaction?

FIVE: RIGHTS AND LIABILITIES

• All rights and obligations should only be transferred to the new buyer once the full ownership is transferred.
• Why? Well, questions like this might arise: If the property is rented, who gets the rent until the transfer of the ownership is completed? How is that process going to happen?

SIX: KEYS

• Establish a time frame and method for the handover of keys and other access devices, if required.

SEVEN: PROPERTY STATUS

• Are you buying on an “as seen” basis? Or does the seller have to rectify or complete any parts of the property?

EIGHT: PARKING

• Ownership of parking spaces should be included too, where applicable.

NINE: DEFAULT CLAUSES

• In case of default by the buyer or the seller, what is the pre-defined and agreed course of action? Make sure it is all well defined in your contract of sales and purchase.

TEN: LEGAL AND FORCE MAJEURE

• In case of any legal conflict, what is the pre-defined and agreed legal jurisdiction process?
• In case of any force majeure, what are the rights and obligations of both parties?

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