Transparency is essential for a fair real estate deal. Thanks to the government of UAE, the real estate sector in Dubai and UAE is one of the most transparent ones you will see. The government regulates real estate transactions via different types of documents like NOCs, Sales Purchase Agreement (SPA), etc.
The sales-purchase agreement is a highly important document in Dubai real estate trades. You can read about this document in detail on our blog, What is a sale-purchase agreement in Dubai?
In this post, we will discuss an important aspect of the SPA—how to add a member to a sales purchase agreement and why that may be required.
Things to Consider Before Signing a Sales-Purchase Agreement in Dubai
Before we discuss amending the SPA, let us quickly review the considerations before signing it. Many first-time buyers end up entering a sales purchase agreement hastily.
Possible reasons for this urgency are the
- Fear of missing out,
- Inexperience, or
- Excessive trust in the other party
Whatever the cause may be, this approach is counterproductive. It increases the risk instead of mitigating it.
Therefore, potential buyers must study the records of the developer thoroughly before finalizing a deal. This includes
- Verifying registration with the Dubai Land Department (DLD),
- Checking title deeds, and
- Confirming the legal status of the seller/developer
The buyer must also check all the terms and conditions laid out by the developer carefully. This is highly important regarding the termination policy because this involves the refund rules.
Requirements for Amendments to SPA
Any amendment to the original SPA can only take place with mutual agreement. Modifying, revoking, or rescinding a contract unilaterally is not allowed per Article 267 of the Civil Transactions Law in UAE.
Once both parties consent to an amendment, an attorney must prepare a draft of the revised agreement. The buyer and seller (the developer, in this case) then sign the amended SPA.
Examples of Amendments to SPA
Here are some common amendments in the sales-purchase agreement in Dubai.
a) The Completion Date
Off-plan properties are usually more volatile. Hence, the developer may mention that the completion date may change due to unforeseen circumstances. This is a common provision due to the high risk involved.
b) Termination
Apart from the conditions stated in the law, there may be circumstances in an SPA that nullify the deal. These are discussed beforehand and mentioned in the legal document. However, neither party can terminate the SPA one-sidedly without going through a legal process.
c) Dispute Resolution
Disputes may arise at a later date, such as during the handover process. The agreement may contain the course of action for both parties in such situations. If present, the process is binding for both parties in case of a disagreement in the future.
Why You May Add a Member to SPA
There can be multiple reasons that trigger the need for adding a member to the sales purchase agreement in Dubai. Here are a few.
1. Joint Mortgage/Sponsored Mortgage
While obtaining a mortgage is fairly simple for most expats, there are exceptions. When a buyer is not eligible for a mortgage, he may obtain it through another person.
So, the sponsor or guarantor becomes a part/member of the SPA. Alternatively, if the buyer uses a shared mortgage facility, it must be stated clearly in the sales purchase agreement.
2. Addition of legal Heirs to the SPA
Another scenario is adding legal heirs to the SPA. The buyer may discuss with the developer the need to include such family members in the agreement. You may also consult your lawyer about how to add a member to the sales purchase agreement.
How to Add a Member to a Sales Purchase Agreement in Dubai?
Once both sides reach an agreement and the amended draft is signed, it must be notified through the DLD. The fee for the process is AED 250. Additional fees (knowledge fee and innovation fee) of AED 10 each are also applicable.
How to Add Members to Sales Purchase Agreement in Dubai: Step-by-Step Process
- Log on to Oqood Portal
- Select the option: Provisional Sale Registration Service
- Select a Property
- Fill in the details
- Attach necessary documents
- Select the payment method
- Send the application
You will receive a receipt of the application submission via email. The process usually takes 6 business days. The required documents include
- A sales-purchase agreement
- A signed amendment annex, and
- A valid UAE ID (or passport for foreign nationals)
This is how to add a member to a sales purchase agreement. However, if you feel you need help with the process, it is better to consult a lawyer or registered real estate brokers.
Summing it up
Dubai’s real estate market is highly sought-after by locals and expats alike. Due to this high demand, the UAE government enforces strict laws and a transparent process for buyers and sellers.
Therefore, thorough research is required to ensure compliance and safeguard against fraudulent activities. New entrants to Dubai’s real estate scene should consider seeking professional advice.
If you are unsure how to add a member to the sales purchase agreement or have other similar questions, feel free to contact us. Our experts will guide you to the best possible solution and help secure your interests.
