Legal Requirements for Drafting an Official Apartment Deed (Part One)
2024-04-29
Preventing legal problems in real estate transactions
Many people's problems during real estate transactions stem from a lack of familiarity with legal issues, which can lead to disputes and lawsuits before the courts. For this reason, real estate cases top the statistics of matters brought before the courts. By drafting contracts correctly and obtaining legal advice, disputes can be prevented and the cost of litigation reduced. Preventing legal problems in real estate transactions requires care and awareness of legal points.
The importance of the official deed in preventing legal problems in real estate transactions
In apartment transactions, administrative and judicial authorities recognize only the person in whose name a registered parcel number has been issued at the local Real Estate and Documents Registration Office as the official owner. Therefore, drafting an official deed allows the owner to benefit from its advantages and prevents disputes and court cases from arising.
Advantages of concluding a contract in the form of an official deed
An official deed is drafted at the Registration Office, at notary offices, or before official government agents, in accordance with statutory regulations, whereas other documents are considered ordinary (private) documents. The contents of an official deed can be relied upon against the parties to it and against third parties, whereas the contents of an ordinary document are only valid between its parties. Official documents, in litigation, only face the risk of a forgery claim, whereas ordinary documents, in addition to forgery claims, also face denial or doubt as to their authenticity. The holder of an ordinary document, if the other party denies it, must prove the document's authenticity, whereas with official documents, the party alleging forgery must prove that the document is forged and not authentic.
Essential recommendations for preventing legal problems when drafting a contract at real estate agencies
A contract drawn up under the title of a sale agreement (bey'nameh), whether at a real estate agency or elsewhere, is an ordinary document, and the parties must take great care in drafting it so as not to run into problems later. Sale agreements that are printed and bear a real estate union's letterhead are not official. Until it results in the issuance of an official deed, the buyer cannot benefit from the advantages of official documents. At this initial stage, attention must be paid to matters such as verifying the seller's standing, recording the complete description of the property being transacted, mutual performance of obligations, and using secure payment methods. Preventing legal problems in real estate transactions is highly important at this stage.
Verifying the seller's standing and the authority of their representative, to prevent legal problems
The best approach in drafting a real estate contract is for the buyer and seller to be the principal parties to the contract and to sign it themselves, without an intermediary. If the person signing is the owner's attorney, guardian, or legal guardian, the buyer must examine the evidence establishing their standing and make sure that the agent's authority includes the right to sell and to receive the transaction price.
Recording the complete description of the subject matter of the transaction, to prevent legal problems
The buyer must match the description of the property they intend to purchase against the deed. Recording a complete description of the property's appurtenances, attachments, fixtures, and shared areas is essential. It must also be specified that the property is not occupied by a tenant, and if it is, the arrangement, deadline, and guarantee for the tenant's eviction must be specified.
Mutual performance of obligations, to prevent legal problems
The parties' performance of their obligations should be arranged reciprocally. For example, paying part of the property's price at the same time as drafting the sale agreement, and paying the rest against delivery of the property and execution of the official transfer deed. Until the property is delivered or the official transfer deed is executed, the buyer should not pay the full price. Likewise, the seller should not deliver the property before receiving the full transaction price.
Using secure payment methods, to prevent legal problems
Today, the transfer of transaction prices has been made easier through electronic methods. If payment is made by check, it must be confirmed that the check was not issued from a frozen account, is not stolen, and bears a valid signature. It is recommended that the seller accept a check issued from the buyer's own account, in the buyer's presence.
Ensuring the official transfer of the property is possible, to prevent legal problems
The text of the sale agreement should specify that if ownership of the property being transacted belongs to someone else, the seller is obligated to refund the transaction price at the property's current market value. This matters particularly in large transactions, and it is preferable for the seller to obtain an up-to-date registration status report to reassure the buyer.