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I am buying a property in Dubai. The property in question is an off-plan project currently being developed by a renowned Developer. The seller has liquidity issues and had missed payment of installments as per the Developer’s payment plan, that’s why he is distress to sell the Property.
In order for the Developer to issue the NOC, I will have to pay the outstanding amount on behalf of the seller, to the Developer, to get the NOC. However, since I don’t own the property yet, I am at the risk of making a payment to the Developer, while the seller still owns the property.
The seller is willing to provide me special POA for the property. He is also willing to hand over all the original property related documents to be kept with broker (e.g. SPA, Oqood)
How could I cover my risk? what documents do I need to get in place so that if seller defaults, I should at least be able to get the Property transferred in my name without recourse to him.
You are absolutely right in wanting to secure your position before you make any payment to the developer on behalf of the seller. In order to secure your rights fully, you will need to enter into a legally binding legal instrument with the Seller. Such document would protect the investment you make in advance of getting the property pre-registered in your name. It is highly advisable that you consult a lawyer regarding the preparation of such a document.
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