How do I transfer my plot ownership?
In transferring plot ownership, the owner must submit a correspondence for ownership transfer addressed to Park Properties with the information of the buyer, plot being transferred and the necessary details in relation to its transfer. After all concerned departments of Park Properties give the approval of the transfer and upon payment of transfer fees and related charges, and the submission of new installment checks, a minimum of three working days is required for Park Properties to issue the new sales agreement to the new owner

What are the requirements in transferring my plot ownership?

1. Request letter signed by the seller and the buyer addressed to Park Properties stating the intent of transfer.
2. Payment of 2% transfer fee charges.
3. Passport copies with visa page of seller and buyer.
4. New installment checks
5. Memorandum of Association or power of attorney of authorized signatories or representatives of the company in which the contract is being made.
6. New specimen signatures for escrow account’s purposes.
7. Approval from Park Properties’ Head of Real Estate Development, Financial Controller and CEO.

What are the fees for plot ownership transfer?

The following are the related fees:

For new contracts:
1. Within the first 24 months of the original contract duration a fee of 2% of the original purchase price will be levied.
2. From the 24 month onward 2.5% of the third party purchase price will be levied

For old contracts
3. Within the first 24 months of the original contract duration a fee of 1% of the original purchase price will be levied.
4. From the 24 month onward 1% of the third party purchase price will be levied.

If I want to change the contact name from my name to the name of the company I own, what are the requirements and procedures?

1. Request letter signed by the seller and the buyer addressed to Park Properties stating the intent of transfer.
2. Payment of administration fee charges in the amount of 1% of the original purchase cost.
3. Memorandum of Association or Articles of Incorporation or power of attorney of authorized signatories or representatives of the company in which the contract is being made.
4. Approval from Park Properties’ Head of Real Estate Development, Financial Controller and CEO.

The transfer of title will happen only after either:
1. calendar days after the launch of the project on to the open market.
2. 20% of the project sales have been registered with Park Properties and the funds associated with these sales have been accounted for within the development escrow account system whichever occurs later.

What is an escrow account?
Escrow is a legal arrangement in which an asset (such as cash, real property or other tangible assets) is deposited into safekeeping (e.g., a bank account) under the trust of a neutral third party (escrow agent) pending satisfaction of contractual contingency or condition. Once the condition has been met, the escrow agent will deliver the asset to the party prescribed by the contract

What are the benefits of an escrow account system
The benefits of an escrow account includes, ensuring the safety of the end users’ investment security by allowing an independent bank or trustee to handle the funds relating to their payment for their property investment. It also includes the confidence gained by the Developers in their transparency to their payments and remittances from their customers. It allows the Master developer and the trust bank to monitor their cashflows.  

Is escrow account mandatory or voluntary for plot owners?
It is a mandatory obligation of Park Properties developers.

Who are the signing officers of the escrow account?
The signing officers include the authorized officer of the purchaser, and Park Properties.

How much amount can the Plot owner withdraw from the escrow?
As per the agreement, fifteen percent of any sales contract can be drawn from the escrow account by the purchaser instantly upon deposit of the full payments or paid directly to the purchaser by their customers (of any part of the development) as long as a copy of that sales agreement is issued to Park Properties within one week of signing.

What is the procedure to make a withdrawal or fund transfer from the escrow account?

The following are the requisites:
1. Submission of updated sales report by the plot owner to Park Properties
2. Submission of periodic cash flow statements with supporting documents or invoices, billings, etc.
3. Submission of fund transfer or payment request signed by the authorized signatory.
4. Approval of Park Properties and signing of related escrow bank documents.

Can an escrow account be blocked? In what circumstances?
Yes. Under the circumstances enumerated in the original sales agreement or in line with the escrow account agreement. An example is insolvency of the purchaser.

Are there charges to maintain the escrow account?
Yes. A monthly maintenance fee is charged in the amount of AED5,000 recoverable form the escrow account starting from the date of the first withdrawal from the account until the completion of the development. This amount is charged as Park Properties is monitoring the escrow account and additional employees are required to do this such as accountants, quantity surveyors, engineers to check and prove percentage of completion and development progress.

If I want to sell my plot, what will happen to its related escrow account?
The escrow account will then be transferred to the new owner after all the formalities of bank have been complied. The same account will be maintained for the plot with the new owner.

Can an installment check be called back for due date extension?
It depends on the circumstances the plot owner is into. Approval of management is required to be able to do that. In case approval is obtained, a AED10,000 administration fees is charged to hold presentment of installment check and a formal request letter must be submitted to Park Properties stating the requested extension date.

What are the consequences of bouncing checks in relation to installments?
The implications are the following:

If contract falls to old contract:
- A penalty of 1% of the amount due charged on a monthly basis.
- Replacement of the bounced check to a manager’s check
- 2% additional penalty charged monthly should payment not be made on promised date.

If contract falls to new contract:
- First returned cheque, buyer will be charged AED50,000
- Second returned cheque, buyer will be charged AED100,000
- Third and onward returned cheque, buyer will be charged AED 200,000 and/or the
  contract will be terminated by the vendor