The Risks of Signing Semi-Fictitious Long-Term Real Estate Investment Contracts
Dubai, United Arab Emirates:Saturday, October 26, 2024
Real estate consultant Tariq Al Shehhi stressed the importance of legal awareness when making a real estate ownership deal, warning against being deceived before signing semi-fictitious long-term purchase contracts, and dealing with unauthorized advertisements.
Al Shehhi noted that some investors may fall easy prey to tempting promises from unknown real estate developers to manage units and provide guaranteed and fixed returns on a long-term contract.
Al Shehhi insisted on obtaining advice from those experts who have the right experience in the real estate market. He emphasized the need for reviewing companies or agencies with expertise, approved by regulatory authorities before concluding any contract.
The real estate consultant said that the Dubai real estate market is going through a strong recovery phase, maintaining an unprecedented growth rate in terms of executed transactions, whether sales or rentals, supported by population growth high demand driven.
“To achieve excellent returns in case of right choice, the investor does not need such contracts that restrict him for a long time,” he said.
Tariq Al Shehhi noted that this type of contract is based on offering a real estate price lower than the market average to entice investors and restrict them to the contract, without third party intervention under any circumstances, which requires the buyer to bear all the consequences.
Al Shehhi stressed the need to adhere to the rules set by the relevant authorities in documenting contracts. The real estate price lower than the market average, and covered by contracts guaranteeing returns for a long and fixed term, should not be a motive for falling victim to real estate fraud.
Real estate consultant Tariq Al Shehhi advises investors to ask for advice before signing the purchase contract in order to be well-aware of all the terms and conditions.
