Written by: Dalia Mazin
Head of Contracts & Compliance
[email protected]
www.famconveyancing.com
In today's fast-paced world, technology has revolutionized almost every aspect of our lives, including the way we carry out real estate transactions. The Dubai Land Department (DLD) has been at the forefront of this transformation, providing a secure and efficient platform for buying and selling properties through the Electronic Unified Contract F.
The Electronic Unified Contract F is an electronic version of the contract that replaces the traditional paper-based contract. It offers a range of benefits, making it the preferred choice for both buyers and sellers. One of the most significant advantages is that it protects the rights and obligations of all parties involved in the transaction.
The DLD has indicated the Electronic contracts have been designed to avoid problems that arise from the misinterpretation of documents and to facilitate and accelerate property transactions and the transfer and registration process with the DLD.
By using the electronic contract, the seller is bound to the terms of the agreement, and the buyer is protected from any potential breach of contract. Additionally, the contract creates a legal framework that ensures the transaction is transparent, secure, and equitable preventing fraud and any other dishonest practices that may occur during property transactions.
Moreover, the contract ensures that the property is blocked, making it impossible for the seller to list it to other interested buyers. This helps to prevent any confusion or disputes that may arise if there are multiple claims on the property.
Furthermore, the Electronic Unified Contract F is a sustainable option that is eco-friendly and reduces the use of paper, which contributes to the preservation of the environment.
One of the primary benefits of this new contract is that it ensures that if the contract expires and one of the parties withdraws from the sale, whether the Buyer or the Seller, the non-defaulting party can claim compensation. This compensation claim is equivalent to the 10% security deposit that was set aside which 80% goes to the non-defaulting party and 20% to their broker as compensation and professional fees.
Moreover, the compensation claim can be settled peacefully and amicably between the parties through the cancellation letter, or by a court order. The fact that this option exists provides a level of security and protection for both parties, ensuring that they are not left out if the transaction falls through for whatever reason.
It is also essential to note that additional conditions are included in the contract to ensure that everyone is clear on what terms have been agreed upon. If either party violates or withdraws from the sale, then the Court will decide on such claims based on the signed and binding contract that is registered in the DLD system.
As an investor in Dubai's real estate market, it is crucial to be informed of the numerous advantages that come with using the electronic contract. It provides a secure, reliable and sustainable way of conducting property transactions that prioritizes the interests of all shareholders involved and the inclusion of additional conditions ensures that everyone is aware of what has been agreed upon.
In conclusion, the use of the Electronic Unified Contract F is an important step towards the development of a modern, efficient, and trustworthy real estate industry in Dubai. It provides a platform that enhances the reliability and transparency of property transactions, protects the rights and interests of all shareholders involved and ultimately contributes to the growth of the sector.
For more information, please contact us to learn more about all our services. Call us at +97143691704 or drop an email at [email protected] to get your queries answered in no time. Additionally, you can visit our website www.famconveyancing.com to check our services.