OMAN REAL ESTATE LAW
Oman Real Estate Law
Tenancy Contract Royal Decree 6/89
Tenancy & Leasing Provision in Oman
Tenancy & Leasing Agreement Process in Oman
Tenancy Terms of Agreement Oman
Renew Rent Contract Online
Sales and Purchase Agreements Oman
Ministry of Housing Oman
Sales and Purchase Agreements Oman
Oman Real Estate Sales and Purchase Agreements
Oman Real estate market is growing in demand for housing, continued focus on building tourism facilities, and strong overall economic conditions have driven the development of many new residential and commercial real estate projects in the Sultanate over the past few years. In current real estate market, it is as important as ever for buyers and sellers to understand the key terms of the sale and purchase agreements (“SPA”). This is the document through which real estate transactions are frequently carried out so that both buyer and seller can understand full legal rights and obligation on contract.
This document clarify one particularly important aspect of a real estate SPA: the types of representations that the buyer should seek to obtain from the seller. Typically, all the representations will be included in a section of the SPA titled “Seller’s Representations and Warranties” (or something similar, such as “Seller’s Acknowledgements and Undertakings”).
Representations related to title deed and no encumbrances
Firstly, a buyer will normally seek is assurance that the seller is able to convey to the buyer the full property rights that the seller has promised. Accordingly, the buyer should ask the seller to represent and warrant that, as of the date of sale, the seller is the sole legal and beneficial owner of the property. Similarly, the buyer should also ask the seller to include a representation that, as of the date of sale, the property is not subject to any mortgage or other encumbrances. (In cases where mortgages or encumbrances are present, and the buyer agrees to purchase the property subject to them, these mortgages or encumbrances should be clearly listed in the SPA.)
Representations related to the construction and common spaces areas
It is now very common in Oman for villas, flats, or office space to be sold ‘off plan’ prior to their construction. It is also common for both commercial and residential property to be built within larger developments that will feature common spaces to be shared by the various property owners within the development. In such cases, it is prudent for the buyer to seek representations from the seller (who is often, but not always, the original developer) that:
* property that is being sold and the common areas pertaining to it shall be constructed in a good and workmanlike manner;
* the seller will construct the common areas provided for in the development’s master plan; and
* Construction of the real estate property and the construction of the common areas pertaining to the property shall be finished within the timetable specified in the development’s master plan that has been shown.
Representations related to permits, development status and approvals from legal authorities
It is also important to know that in Oman some developments have a special legal status that require a license from the Omani government, such as Integrated Tourism Complexes (ITC) in which non-GCC foreigners can own property. Buyers looking to purchase property in a development that has or is slated to have to have ITC status would be prudent to ask for a representation from the seller in the SPA that the property and the larger development will have and will continue to enjoy such ITC status for the longer period.