What are the key clauses included in a RERA-approved sales contract?
To be more precise, a sales contract which is needed for real estate transaction in Dubai and has to be signed according to the rules of RERA is called Form F. It safeguards the interests of their immediate buyer as well as the seller, all the activities relating to the transactions being legal and clear in addition to being enforceable. Here are some of the key clauses included in a RERA-approved sales contract:
Property Details
It contains detailed information of the property including; Exact location, type of property, Land plot number, title deed number, the exact area of the property among others. It also defines whether the property intended for dwelling or for business purposes and it clearly defines if it is a cash deal, if it has mortgage or if it involves installment process.
Financial Terms
The financial terms clause mencites the purchase price stated in the agreement and encompasses price at which an item is to be purchased as well as other agreed down payment, initial purchase price or even amount payable. This also involve information concerning charges for proviso of service in the property.
Payment Plan
In this section, the payment is described by the organization in terms of construction types where payments are made depending on certain construction phases/periods or else have fixed time intervals. It also makes both parties agree on the time and manner of delivering payments hence those issues concerning financial aspects are well addressed.
Anticipated Completion Date (ACD)
ACD clause gives the anticipated date of property completion and hand over. It may also provide for extension where the developer is faced with some constraints that would delay the project. It also serves as a caveat for the buyer and makes it possible to set the duration of the project’s completion.
Termination Clauses
Notice provision is very important as this section outlines the circumstances under which the contract can be canceled by either on consensual basis or by operation of the law. This may include the buyer’s financial woes which prevents him from paying for the materials used or the developers’ failure to meet deadlines in completing the project. It is important to understand these terms in order to know what rights and recourses are available in the case of a breach.
Dispute Resolution
This clause explains on how the disputing parties would be grateful to resolve the issues through mediation, arbitration or through the court. It allows both the parties to have some presuppositions on how the matter is to be handled in case of any conflict, hence minimizing conflicts.
Restrictions on Disposal
In the case of the off-plan properties, this clause limits the freedom and freedom of the buyer to sell the property before it is finished. This is mainly to curb activities in the market and make sure that the property gets to completion by the same owner, which is very essential in stabilizing the markets.
Warranty and Quality Assurance
The two unusual parties of a building contract are the developer and the purchaser, the contract usually includes a warranty period within which the developer has the responsibility of correcting any defects in the property. Section 65 serves the purpose of allowing buyers to seek redress should the property not conform to agreed up on standards.
Quiz: Key Clauses in a RERA-Approved Sales Contract
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