The sale and purchase of a vessel in the UAE is an important business transaction. It needs to be done through the agreement that mentions all the terms and conditions for the sale of the vessel. The agreement to sell a vessel in Dubai must mention all the important components like that of the earnest money, all disclosures, warranties, etc. The primary goal of drafting this agreement is to protect both the buyer and the seller of the vessel. Therefore, this agreement needs to be legalized by getting it attested by the Notary Public Dubai.
In this article, we will help you gain an insight as to how to write an agreement to sell a vessel in Dubai along with the steps to get it notarized by the Notary Public Dubai.
The terms and conditions laid down on the agreement for the sale and purchase of a vessel in the UAE can vary significantly depending upon the needs and requirements of the buyer and the seller. The agreement for the sale and purchase of a vessel in the UAE is a legally binding contract in which both the seller and the buyer have to abide by the terms and conditions mentioned on it. Therefore, the clauses mentioned on the document should be written with extreme proficiency and professional lawyers’ help might be needed while drafting this contract.
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Key clauses of the agreement to sell a vessel in the UAE
The first glance of the sale and purchase of a vessel in the UAE might be an overwhelming experience for many. The terms and conditions and the clauses mentioned in the document may make the document very extensive and lengthy. There might also be some elements and words that are not familiar to either of the parties and therefore, it is a must for both the seller and the buyer to understand the key aspects of the same before signing the document so that they keep themselves secure and protected from any disputes that might arise in future. So, without any further discussions, let’s discuss a few of the key elements of the declaration for the sale of vessels in the UAE.
- The contracting parties and ship details- First thing is that the declaration must mention the outline of the vessel that is going to be sold. The description should be clear and straightforward. Also, the description must include the detail of the buyer and the seller. The buyer has to decide if he is going to be the sole owner of the vessel or he is going to include the co-owners as well in the deal. The co-owners must have the right of survivorship as well which means that should the owner passes away, the title of the vessel will immediately pass on to the co-owners without any delay. The share of the vessel in co-ownership can be equal or unequal and can also be freely transferred to another person.
- Price and terms- the vessel purchase and sale agreement must mention the price at which the sale is being made and also the terms and conditions of the payment. The most common method of payment includes full payment in cash or a down payment followed by a loan for purchasing the vessel. The detailed information shall be included and a financial addendum must also be added stating the down payment amount and the lending situation details. For the purchase of ships, an agreement shall include the earnest money that was used for confirming the deal and the rates and terms may vary from one purchase to another. The buyers in general, expect a certain amount to be paid for the deal to be confirmed. The earnest money is used for the down payment. The sellers might be adamant about adding contingencies that lay down the forfeiture earnest money in case the sale doesn’t happen due to lack of finances or any other reason. In some cases, however, the earnest money is refunded even when the key aspects and conditions are not met. This depends on the contracting parties and all the terms including the pricing and the mode of payment are negotiable by the buyer and the seller.
- The closing date and cost- The date on which the sale is closing must be mentioned on the document. Any stipulation regarding the change in the closing date must be mutually agreed upon by the buyer and the seller and must be written on the agreement. The title of the vessel is transferred to the buyer when the closing date and time are over. All the details regarding the sale and purchase of the vessel and all kinds of expenditures related to it must be mentioned in the agreement.
- Special assessment and taxes- As of the closing date, all expenditures like, maintenance fees, docking fees, registration costs of the vessel must be mentioned in the document and must be prorated. In a situation where the taxes are to be rolled back and cannot be assessed at the moment, the same must be mentioned clearly in the addendum. Special assessments before the closing date and the payments due arising because of that are supposed to be paid by the seller.
How the agreement to sell a vessel in Dubai can be notarized by the Notary public in Dubai?
Once written, all sorts of agreements and legal documents need to be legalized for them to be executed. All legal documents need to be written with the help of professional lawyers. They have to be notarized by the Notary Public Dubai for them to get executable by law. For notarizing the document, the document must be presented before the Notary public all the parties must be present at the time of notarizing. The parties here include the buyer, the seller, the 2 witnesses who are above 18 years of age, and the notary public officer. The parties as well as the witnesses are also supposed to present their IDs as well.
To know more about the process of legalization and notarization of the agreement for the sale of vessels in the UAE, feel free to contact us at the Notary Public Dubai.
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.