The Business of Mortgage Settlement Explained.

The Business of Mortgage Settlement Explained.

Buyers and sellers must understand the nitty-gritty of settling a mortgage.

The mortgage market is the vast and quite complex how ever it is important for mortgage settlements to take place as these provide assistant to both homeowners and borrowers property buyers have a ensure several clauses are included in the memorandum of understanding (MoU).

The procedures that a cash buyer who settles a seller mortgage include pre-regostering the mortgage property at the land department which is highly essential using escrow agents undertaking a letter from  the seller to his her bank requesting the bank to release all original property documents to the purchaser only. 

Another major component are the security cheques which are equal to the mortgage.the amounts will be held as security only by the real estate agency and will be returned back to the seller on the transfer date once the property transfer is completed by the seller.

Escrow agents operate as natural third parties on behalf of buyers and sellers in a real estate transection. The seller gives a price on application (POA) in favor of the escrow agent purchaser to be used for security purposes only if the seller attempts to default on his her obligation.

The undertaking letter from the seller to his her bank instructs or request the bank to release all original property documents to the purchaser only. It is inclusive but not limited to banks issuing a no objection certificate (NOC) and title deed to the purchaser or purchase bank. A buyer should also ensure that the seller banks credit the fund a received from him into the sellers loan account and not into the sellers current or savings account and obtain a confirmation from the seller bank for the same. 

The security cheques can also be realised to the purchaser and can be deposited or encased by the purchaser if the transfer is not completed by the seller default on his obligation to complete the transfer to purchaser. 

To make sure you are on the right end of a mortgage closing it is important to follow four pieces of advice avoided any major purchaser before closing your mortgage plan don't make any big or drastic careers changes always prepare for a last minute credit check and always watch out for closing cost surprises  

The case of non-renewable tenancy contracts.

The case of non-renewable tenancy contracts.

Go through every detail of the contract and make sure you understand all clauses
has your tenancy contract of your ended and has the landlord demanded termination evection instated of renewal check if you have signed a nonrenewal tenancy contract usually tenancy contract are enwalled expect if they are particularly marked nonrenewable or may have some clauses that make them nonrenewal led also sometimes the landlords writes the nonrenewal clauses in ambiguous words which the tenant may be unable to catch at all times of signed the contract.

This strategy is applied by some landlords so they may not be found bound to adhere to any rent cap or in case of DUBAI the RERA rental index. When the landlord issues a nonrenewal contract for one year he can ask the tenant to leaf if the tenant disagree to pay the increased rent in this situation the landlord can avoid any rent cap clause and lease the property to a new titan on a higher rent .
If he tenant has signed and willingly accepted the non-renewable clause in the contract, then he has to comply with the terms and honor the agreement.

As a tenant, before signing either for the first time tenancy contract or renewal contract, it is pertinent to go through it thoroughly and understand all the clauses perfectly. Taking legal device could be helpful to avoid any disputes later. This is particularly useful for expatriates new to Dubai. Also, a tenant should remember that no landlord can forcefully make him sign a non-renewable contract. But the landlord is entitled to send a non – renewable contract when renewal for the new term with a one-year notice.

In case the tenant has signed a non-renewable contract unknowingly and does want to vacate the property, he can try negotiating with the landlord by expressing his desire to renew the contract and see if he agrees. Typically landlords are aware that most tenants would like to renew the lease after the expiry of the original lease. If the landlords and tenants reach a mutually beneficial agreement, the matter can be resolved amicably.

Property Tips

•    Ensure you have full understanding of the tenancy contract and tenancy rights
•    Negotiate with the landlord so you reach a mutually beneficial agreement.
•    Always prefer a renewable contract over a non-renewable one.

Build your with business tenant profile

Build your with business tenant profile.

Landlord building owner must make it a practice to vet prospective tenants

Oft we hear to tales about unscrupulous landlord who impose sudden rent hikes without notice giving unwilling tenants take it over leave it ultimatum as there called option but to be fair there are also tenants who turns out t be quite a headache not just to be landlord or building owner and also to feller tenants.

When it comes to a commercial building portfolio it would do well for a land lord building owner to throughly vet prospective tetanus and build of tenant profile or database to help in manage his property weed out problematic tetanus and effectively retain the goods ones.

If you are investing in an already occupied property remember that you basically inherit whoever is already in the units reward stress note if items like the cleanliness of the unit tenant business owner personality nature of business relationship with fellow tenants ext you normal day to day chitchat.

But if you are landlord of an newly acquired property that has yet to be filled then you have full controls of who gains access to the units and amenities therein avoid the mistake most landlords make that is being more conserved with getting the unit leased out as quickly as possible  instead of focussing on identifying quality tenants some things to in include in your tenants vetting checklist are nature is business proof previous land lord tenants personality traits and credit standing.

Either way for future reference aside from basic demographic information you should also include data on the lease termination date history tenancy and maintenance and service activities as well as any Feds back complaints session with your tenants.

Look no further than UAE for investments

Look no further than UAE for investments.

The country is the great place to live work and invest in real estate

The UAE real estate market is the healthiest market in the world at this time some may have say he same thing about London o New York . They are bowing market or have booming areas where the super rich live . But why not dive out of those ares and start counting the for sale and tolet sights outside business closed after generations of hardworking do not look at he market that focus only the successful bankers live look at the market research that includes where bank customers live then you will see more of the real picture.

Otis better to be in a smaller country where everyone gets a chance to build a life that is open to all nationalities of all budgets we will call it the new American dream tax free and with loads of oil and gas just around the corner of emergency the biggest problem is we buy more A380s and targets more cities around the globe so people will come visit and want to relocate here as they soon as they return accommodate them we must not make it impossible for people to bring there family and too expensive for them to rent of buy a house.

In our commercial and industrial offering to investors we must not forge the small  us indeed s always look at the long term and not search elsewhere.

It is not easy to buy or rent anywhere at this time there are waiting list for everything so invest now if you can but if you are just starting do no worry will continue for decides to come on New Years London and Dubai the first three cities are more than 300 years in the making Dubai only 43 years old .