Categories
Escrow Service

Escrow Service Explained

Steps, Procedure, Requirements and Timeline

Summary

The escrow process occurs between the time a seller accepts an offer to purchase a property and the buyer takes possession of the home.

The first part of the escrow process is to find an escrow such as an attorney, execute contracts on the scope of work and open an escrow account in which the deposit for the buyer intended to be made to the seller is to be held.

The buyer will get inspections completed, purchase insurance and perform a final walk through before closing the deal.

The buyer may walk away from the Agreement if conditions are not met or there is a problem with the property.

Detailed Procedure

  1. Open an Escrow Account

A Property Escrow Account is managed by a third party company in order to hold property payments, deeds and other documents related thereto. Usually the Escrow agent will be a neutral Third Party. Where an Attorney is handling this Process, it is usually referred to as “Settlement”.

Once the buyer and the seller agrees on a price and signs a mutually acceptable Purchase Agreement, the seller or its agent will take a deposit depending on the agreement. The Deposit will be applied to the down payment which should be deposited in an escrow account at the Escrow Company or service specified in the purchase agreement.

  1. Title, Home, pest, environmental Inspection and fulfillment of Purchase Agreement conditions

The Title Deed of the property must be inspected at the Land Department to ensure that the seller has the right to sell the property without any encumbrance. Likewise, depending on what was executed in the Purchase Agreement, the Buyer should get a professional home inspector to inspect the house and give a detailed report on any dangerous or costly defects in the home. At this point should there be any concern about the house, the buyer and either back out, ask the seller to fix them or to lower the price so as to carry out the repairs yourself.

All other inspection and conditions in the Purchase Agreement will be fulfilled at this point.

  1. Insurance

Insurance should be taken out and fulfilled according to the Terms of the Agreement. Usually the buyer decides which insurance company to choose and what insurance cover to take.

  1. Final Inspection

Just before closing off the deal, the buyer should inspect the house a final time. This is to ensure that no new damages occurred.

  1. Close Escrow

As soon as the buyer is satisfied with all the terms, and result of physical inspection, the Deed of transfer/ Deed of Assignment can be executed and the money from the escrow account delivered to the Seller. At this point, the Escrow’s responsibility is finished.

Timeline

The time line of the escrow service is dependent on the fulfillment of the process required in fully transferring the property from the seller to the buyer.

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Categories
Property Investment

Property Investment in Dubai

According to recent updates, here are few points to note.

General Conditions:

  • Ownership of a property worth AED5 million or more will be eligible for a five-year residency visa.
  • Other investments of not less than AED 10million, including property – which must be worth no more than 40 per cent of the total investment will also qualify for a renewable residency visa every 10 years.

This means that where AED 10 Million is the investment amount, 40% must be in Real Estate.

  • Ownership of an investment through a deposit in an established company or a business partnership worth Dh10m or more will be granted a renewable residency visa every 10 years.

Additional benefits

  • Visa holder can come along with Spouse and dependent children
  • If investment is in a company, an executive director and adviser can benefit from the 10 year visa of the investor.

What’s more?

  • Investment as partners should be AED 10 Million for each Partner and not a subdivision of the AED 10 Million.
  • To apply for the 5/10-year long term visa, a 6-month Multiple Entry visa will be granted to the intended investor in order to be able to apply for the investor visa

Exceptions

  • AED 10 Million must be fully owned by the intended investor, it must not be borrowed, which means that a real estate purchased cannot be mortgaged.
  • Ownership of funds used for investment must be proved via documents dating back to three years.

This means that bank statements submitted must date back to three years or shareholdings, dividends received etc.

  • The investor must be financially solvent.

In order to benefit from the 10 year Residency Visa and Emirate ID, owning a Property in Dubai will be one of the easiest means. This gives an Investor ample time to settle in the Country and multiply his funds.

To know more and if you require further assistance, Please don’t hesitate to contact US

Categories
Family Law

Family Law- Conducting a Marriage in the UAE

Non-Muslim Expats: General Procedures on how to register a marriage conducted in the UAE. 

For Non-Muslim expats, the authorized place to register and solemnize your marriage in the UAE is at your country’s embassy or consulate in the UAE. An appointed marriage officer will assist in the registration of same.

For registration purposes, the “to be married” bride and groom have to visit the appointed marriage officer in person along with two expat UAE resident as witnesses. The prescribed wedding notice form will be required for submission which includes a notice, declaration and a Sworn Affidavit. This is usually called the “Wedding Notice”. As soon as all formalities are done, the prescribed fee will be paid.

In certain circumstances, a No-Objection Letter (NOC) will be required from parents alongside four passport size photographs, clear copies of the couple’s international passport and a resident visa of either the intending bride or groom. It is not required that both parties must be UAE residents but at least one of them must be a resident.

Again, in specific instances, a newspaper publication in the couple’s country may be required. On the date of the marriage, the intending couple alongside their chosen witnesses must be present for the marriage to be conducted. Once finalized, a marriage certificate is issued and same will be regarded as valid and can then be registered in the home country.

More information can be accessed at the respective embassy/consulate’s website or primary location.

For assistance on Marriage Procedures, Contact legal Maxims’ Consultants Team of experts. We are always ready to accede to your request.