Quote:
Originally Posted by Safrica
Hi roshan. Are you saying on a normal resale the seller should only transfer the funds once the property is transferred in there name.. What happens in the reverse side if the buyer decides to cancell.. Cmon ppl. I think in all fairness on a resale you are paying 2% for it and if damac transfer agent says all is in order than its there responsibility.
Anyone sold a resale on condition that funds will only be transferred once the property is the buyers name. In case with damac it could take 3 months.
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I have seen some horrid instances where the buyer has given a down payment and the deal has gone sour. I have seen cases at RERA where the buyer gave an advance, the seller realized he could get more and backed out. The secondary sales is purely done on the basis of an MOU and goodwill. If the seller is decent, then there is no problem. If the seller is a crook and God forbid there is a problem, he could take advantage of the problem and keep your money also.
What I am saying is that the seller will get his money at the developers office when the transfer takes place and not before or after the transfer. The payment can be made through a bank certified cheque.
If the developer is charging 2%, he is supposed to take care of the transfer, but that 2% is seen only as an additional income and not as a service charge if something goes wrong.
I understand in some countries, there is an escrow account even for the secondary market, where the funds are released only when the transfer takes place.
The deal favors the seller. In some cases, a cheque covering 10% of the value is made out by the buyer and in the event the buyer backs out, he forfeits the money on the cheque. But, I am not a party to this. I would insist to that the full money being paid at the developers office.
Regards
Roshan