Home buyers and sellers often ask several real estate based FAQs and “what is form F” is one of them. Dubai Real Estate follows a standard rule for realty contracts of any property transaction or sale formalities. Read below to discover the type of forms that come into use for a buyer or seller.
Category of contract for three different type of realty forms:
- Form A is for a seller and the broker contract.
- Form F is for seller and buyer contract.
- Form B is for buyer and broker contract.
What is Form F?
As stated earlier a form F allows a seller and buyer to form a contract, Form F is not appropriate for all type of realty transaction, this form enables a seller and buyer to develop the chief terms of sale and purchase in a speedy manner. Form F will include key details such as the buyers and sellers name, the price of the property, property name, and completion date. Usually buyer and seller form offers detail related to material issues such as deposits, warranties, termination, dispute resolution , compensation or distribution of liabilities, but Form F shall not have any such extensive detail in regard to material issues. Form F is formulated in such as way to suit both buyer and seller interest and produce terms within a lesser time frame. Due to the absence of certain details from Form F, the parties entering contract needs to use a schedule, incorporation by reference or attachment which includes separate sale and purchase agreement (SPA) or memorandum of understanding (MOU).
Form F can never be replaced with SPA or MOU; you will need to furnish a suitable SPA or MOU in order to enter a valid contract. Form F is more over a quick initial agreement type form and Form F should always be attached with SPA and MOU; this step is taken to ensure contractual protection. Be mindful when drafting your sale and purchase agreement or memorandum of understanding because a scantily drafted SPA or MOU can put you and your liabilities terms in trouble. Choose a professional entity or firm to draft your SPA and MOU. After a Buyer and Seller appropriately completes form F; they should have it authorized by the Dubai Land Department