Property Transactions, Contracts and Standard Forms
The paper trail
Secondary-market sales usually use DLD/RERA standard forms. Form A appoints the broker to act for the seller; Form B does the same for the buyer; Form I records the brokerage arrangement and the commission. The commercial terms are captured in the standard memorandum of understanding (the MOU), which sets price, deposit (customarily 10%), payment schedule, completion date, and allocation of DLD fees and commission.
The transfer sequence
Typical order: agree terms and sign the MOU; buyer pays the deposit; seller clears any mortgage and obtains a developer or master developer no-objection certificate; the parties attend a DLD trustee office or DLD; fees are paid - the transfer fee is 4% of the DLD-assessed value, plus administrative charges and, if relevant, mortgage registration fees; title is registered in the buyer's name. Title does not pass when the MOU is signed.
Traps
Candidates confuse the MOU with the transfer and assume the NOC is optional - for units in a development it is mandatory. Watch for scenarios where the seller has a registered mortgage: the mortgage must be released, or the proceeds structured to settle it, before or at transfer. Watch commission too: entitlement normally depends on a signed agreement and a completed transaction, not on introductions alone. Where a party withdraws, the MOU and any special conditions decide the deposit.
Rule of thumb
MOU + NOC + cleared mortgage + fees + registration = ownership. Worked example: a buyer signs an MOU, pays 10% and moves in before the NOC is issued. If the seller then refuses to transfer, the buyer's remedy lies in the MOU and the courts - he is still not the registered owner.