The process of buying and selling a vessel in the United Arab Emirates begins with a vessel purchase and sale agreement, which specifies all the conditions and costs of the transaction. The main objective would be to guarantee that both the buyer and the seller are adequately protected and that there is clarity on everyone’s expectations.
Depending on the wants and demands of the parties to the contract, a vessel buys, and sale agreement might differ significantly in the United Arab Emirates. A purchase and sale agreement for a vessel in the United Arab Emirates may also constitute a complete and enforceable contract. Based on years of negotiating, writing, and evaluating vessel purchase and sale agreements for both big and small vessels, the following is a checklist of the significant commercial and legal issues that should typically be included in a vessel purchase agreement:
What are the main terms of Vessel purchase and sale Agreement in the UAE?
It’s daunting the first time you examine a Vessel purchase and sale Agreement in the UAE. A Vessel purchase and sale Agreement in the UAE is sometimes an agonizingly long document and may include new phrases and ideas. Before signing the contract, both parties must grasp its major clauses completely. A contract must be signed before notary public Dubai for it to be notarized.
Here are the key components that are often included in a Vessel purchase and sale Agreement in the UAE, without further delay:
Parties to the Contract and Ship Specifications
First and foremost, a property description at risk should be included in every vessel or ship sale and purchase agreement. A concise and plain legal description is required. The buyer and seller’s names and descriptions should also be included in the agreement. If the purchase will be the ship’s single owner or whether co-owners will be included depends on their decision. Co-owners benefit from the right to survive or the right of survivorship. If one owner passes away, the other will automatically become the vessel’s owner, even if no probate is required.
Co-ownership is relatively typical in which each owner has a portion of the land or ship. The owners’ shares may be distributed equally or unequally, and they may freely transfer their ownership to another party.
Terms and Prices
The price agreed upon and how it will be paid for must be specified in the vessel buy and sale agreement. The two most prevalent techniques are complete payment in cash and a cash down payment with a loan to pay for the ship. Detail-oriented information is required. A finance addendum might be included to clearly lay out the buyer’s down payment and the loan circumstances.
An agreement often calls for an earnest money deposit when buying ships. Rates might change depending on the purchase and are used to ratify the agreement. However, purchasers often anticipate forking up a particular sum. The earnest money will be used as a down payment. Some sellers prefer to include stipulations that state that the earnest money will be forfeited if the transaction falls through for any reason other than a financing problem. In other cases, the earnest money is fully returned to the buyer even if the essential requirements still need to be completed. All of this will rely on the parties to the contract. The buyer and seller are free to discuss any parameters, including the price and payment options.
Find more about Writing And Legalizing Agreement To Sell A Vessel In The UAE
Price and Closing date
The vessel purchase and sale agreement must include the closing date and a clause stating that any modifications to the closing date must be mutually agreed upon and in writing by both parties. At closing time and date, vessel ownership usually passes to the buyer. On the day of closing, ownership of the ship will transfer from the seller to the buyer.
The contract must include closing fees for both the buyer and the seller. From one ship to the next, the prices might be quite different. The buyer is usually responsible for all closing fees, although some sellers are willing to cover some of them. The contract must be particular about how the costs associated with the sale and the acquisition will be split up.
You may want to know: Contents For Agreement Of Selling A UAE Commercial Shop
Taxes and other expenses
Taxes and other expenses, such as maintenance, dockage, vessel registration, etc., must be prorated as of the closing date. If the taxes can’t be assessed immediately or need to be pushed back, they could be included in the amendment. Before and during the closure, the seller is in charge of paying the special assessments. For writing and examining legal papers, it is always better to seek the advice of legal experts.
Contact Notary Public Dubai right now if you want to learn more, in particular, about the notarization and legality of vessel purchase and sale agreement in the UAE.
Syed Hassan Ali has an experience of 13 years and is highly specialized in providing legal consulting for all types of notary requirements. By utilizing his diverse and deep knowledge, he has consistently aided individuals and organizations in finding flexible and timely solutions.