There are several procedures that prospective buyers of a freehold apartment must follow. Conduct the necessary inspection of the property where the apartment is located, ensuring its area and specifications match what was agreed upon at the time of purchase. Once this is done, and you are satisfied with the unit after inspection and have agreed on the price with the seller, you are entitled to request to see all the seller’s documents proving ownership.
Legal papers to buy a property
There are several procedures that prospective buyers of a freehold apartment must follow.
You must conduct the necessary inspection of the property where the apartment is located, ensuring its area and specifications match what was agreed upon at the time of purchase.
Once this is done, and you are satisfied with the unit after inspection and have agreed on the price with the seller, you are entitled to request to see all the seller’s documents proving ownership.
These may include one of the following:
Registered Sale Contract (“Green Contract”): This is the best proof of ownership and includes a registration number and date. It can be obtained from the relevant Real Estate Registration Office by anyone, even if they are not a party to the contract, for a fee.
Unregistered Sale Contract: This is the initial contract signed by the parties and stamped with the eagle seal, indicating it has been subject to a court ruling confirming the seller’s signature. The court ruling must be stamped and include the text, “The court ruled the validity of the defendant’s signature on the sale contract dated…”. However, this does not mean the unit is registered, and the stamp is not proof of registration. It is commonly used due to its low cost.
Contract Signed by Both Parties without Seals: This is considered an informal contract and can be easily fabricated, thus not considered valid proof of ownership.
Additional Documents: In addition to the contract, you must check the latest electricity, water, gas, and telephone bills (if available).
Fourthly, obtain copies of all mentioned documents and any additional ones such as building permits or ownership chains from other contracts.
Fifthly, inquire with the local authority about the land and the property, and the unit’s compliance with the building permit to know if there are any violations. Also, check the services provided in the property, such as electricity, to ensure there are no issues in getting these services.
Sixthly, after checking with the local authority, verify all services available in the unit through the previous bill receipts (electricity, water, gas, telephone) and ensure that the current owner has contracts for these services and has paid up to the latest due date.
Seventhly, inquire about the ownership contract. There are two scenarios:
Registered (“Green”) Contract: Take a copy to the relevant Real Estate Registration Office (indicated at the top of the contract) and request an official copy. Compare it with the original to verify the plot number, boundaries, and exact area of the unit.
Contract Signed by Both Parties with Eagle Seal and Court Ruling: Go to the court that issued the ruling and verify the case number mentioned in the ruling and on the contract to ensure its validity.
Note: There is a common misconception that there is a difference between the initial and final contracts. Both are considered initial contracts; the only final contract is the registered “green” one.
Another Note: Some contracts are written on green paper resembling the registered contract. These are not registered contracts but rather initial contracts with an eagle seal confirming the seller’s signature. To avoid confusion, verify with the Real Estate Registration Office. If the contract lacks a registration number or a seal resembling the lotus flower, it indicates that the unit is not registered and the contract is merely an initial contract.
Eighthly, after completing all inquiries and verifying the authenticity of the ownership documents and building permits for the property and the unit, draft the sale contract. The contract should include the ownership chain, the seller’s guarantee of unit possession, and any hidden defects that may appear, with a penalty clause. It should also specify the property’s and unit’s boundaries, and include a clause obligating the seller to issue a power of attorney for the buyer for self-sale or sale to others and dealing with all government and non-government entities.
Ninthly, after signing the contracts, arrange to visit the Real Estate Registration Office to issue the power of attorney from the seller. This power of attorney allows the buyer to handle future dealings, such as registering the unit or dealing with any governmental services (electricity, water, gas, telephone) in their name.
