THINGS YOU SHOULD KNOW BEFORE SIGNING A LEASE AGREEMENT

Buying a property involves a lot of factors that a buyer and also a seller should be looking into. Especially when buying property in Dubai, when the real estate market is competitive and a large number of foreign investments flow in. Financial leasing is a popular option to go to when acquiring a property in the modern day. But the region, the developers and the governing bodies can change the variables in a lease deal that you should be aware of. In this article, we will present you with a few factors that will be useful when a property transfer is done on a lease agreement.

No matter what type of property you buy; commercial, residential, luxury or maybe even an empty plot, signing a lease agreement is binding yourself to a commitment. So, when entering such an obligation that legally ties you to a financial agreement, the process should be understood very clearly. This will help you to identify the nature of the agreement while mitigating risks and highlights to assess the feasibility of it.

Clarification on the agreement-functionality

Understanding every section of the agreement thoroughly is very important because, once the agreement is signed the terms cannot be reiterated or reconstructed. Misinterpreting the terms or conditions are not applicable once you are past the signing stage.

Duration: This is one of the key pieces of information that you should have a clear understanding of. This information is vital to plan your finances, travelling, professional and other important decisions in your life within the specific time frame.

Renewing: If there is an option to renew the agreement. You should be aware about the dates that the renewal can happen and about the details that will be subjected to be renewed.

Increment-Clauses: The clauses in your agreement that can be affected with the increment with the changes in the market, laws or the economy. Understanding this prevents you from receiving unplanned payments or legal issues.

Penalties: As with every form of agreement, it is legally bound with a list of conditions. It marks the financial and legal implications that are to be borne by the parties according to how they conduct within the boundaries of the agreement. Even if penalties are usually associated with late payments and not abiding by the conditions, penalties even might apply if you settle the agreement before the time-span you agreed to by paying in advance.

Cost Variables: A lot of unprecedented variables can add up to change the cost you have to bear. The maintenance, utilities, taxes and regulatory changes may change, therefore understanding the variables that may affect your finances for the stretch of the agreement is important.

Deposits: Any security deposits that are to be made in specific form should be understood as well as the conditions that may claim the deposit from you. Also clarifying the process of getting the security deposit refunded back to you is also important since certain agreements require a process to it as well. Making sure you understand the conditions and the process of handling your deposits will help you to not make excess payments or lose money to unprecedented errors.

Maintenance Responsibilities: To experience a smooth property transfer and an agreement process, both the parties should understand their roles in the transfer. During the time that is covered by the agreement, the responsibilities to maintain and repair the property, bearing the costs. Many things should be discussed in detail including the parties making decisions, the response time, emergencies, exemptions and other vital information.

Termination: The termination process of an agreement happens according to the documentation that is signed. If the parties have not recognized the documentation thoroughly, the termination will too cost the parties since real estate and financial agreements.

Dispute resolution: Among the unexpected factors that can change the trajectory of an agreement is a dispute or an emergency. Understanding and making sure that the agreement is ready and set to handle and resolve disputes or any emergencies.

As much as managing the property transfer and the properties themselves, it is of paramount importance that every party involved in an agreement understands every section of it and their part in it. By understanding these elements the transactions will flow smoothly without further burden. With the changing economy, in-flow of the foreign investments and updating government regulations, the fine details and variables of an agreement should be strictly observed. ANAROCK Middle East as a premier real estate consultancy in Dubai, is dedicated to be updated on the property market with an expert team who handles agreements and assists formalities until the end when you buy property in Dubai. Do not make a hassle of documentation when you can leave it to the professionals who will make your real estate experience, one to enjoy.