The Sale Agreement And Construction Agreement is a specialized contract used in the UAE real estate and construction sector when a property transaction involves both the sale of land or property and the construction of buildings or improvements. This document is particularly relevant for off-plan property sales, custom-built properties, or development projects where the seller is also responsible for construction. The agreement must comply with UAE Federal laws, including the UAE Civil Code and Commercial Transactions Law, as well as specific Emirates' property laws and RERA regulations. It typically includes detailed provisions for property transfer, construction specifications, payment terms, completion timelines, quality standards, and warranties. This type of agreement is commonly used in major development projects across the UAE's residential, commercial, and mixed-use sectors, offering comprehensive protection for both the buyer's and seller's interests throughout the sale and construction process.
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1. Parties: Identification of the seller/contractor and buyer/employer, including full legal names and addresses
2. Background: Context of the agreement, including property details and construction project overview
3. Definitions: Defined terms used throughout the agreement
4. Sale Terms: Terms of the property sale, including price, payment schedule, and transfer conditions
5. Construction Scope: Detailed description of construction works to be performed
6. Contract Price and Payment Terms: Total contract value, payment milestones, and payment mechanisms
7. Construction Timeline: Project schedule, completion dates, and milestone deadlines
8. Construction Standards and Quality: Required building standards, quality specifications, and compliance requirements
9. Warranties and Defects Liability: Construction warranties, defects liability period, and remediation obligations
10. Testing and Completion: Inspection procedures, acceptance testing, and completion certificates
11. Title and Risk: Transfer of property title and risk allocation during construction
12. Insurance and Security: Required insurance coverage and performance security requirements
13. Variations: Procedures for handling changes to construction scope or specifications
14. Default and Termination: Events of default, remedies, and termination procedures
15. Force Majeure: Force majeure events and their consequences
16. Dispute Resolution: Dispute resolution procedures and governing law
17. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. Financing Arrangements: Include when buyer requires specific financing terms or mortgage arrangements
2. Phased Completion: Include for projects with multiple completion phases or staged handover
3. Environmental Compliance: Include for projects with specific environmental requirements or certifications
4. Third Party Rights: Include when there are relevant third party interests or requirements
5. Community Rules: Include for properties within managed communities or developments
6. Fit-Out Works: Include when buyer has specific fit-out requirements post-construction
7. Escrow Arrangements: Include when required by RERA or agreed between parties
8. Intellectual Property: Include when design rights or other IP needs protection
9. Maintenance Period: Include when extended maintenance terms are agreed
1. Property Details: Detailed description of the property including plot number, size, and location
2. Construction Specifications: Detailed technical specifications for construction works
3. Payment Schedule: Detailed breakdown of payment milestones and amounts
4. Construction Timeline: Detailed project schedule with milestones and deadlines
5. Plans and Drawings: Architectural plans, drawings, and designs
6. Materials Specifications: Detailed specifications for construction materials
7. Quality Standards: Specific quality standards and testing requirements
8. Warranties: Form of warranties and guarantee certificates
9. Insurance Requirements: Detailed insurance specifications and coverage requirements
10. Form of Completion Certificates: Ƶ for various completion and handover certificates
11. Site Rules and Regulations: Construction site rules and safety regulations
12. Environmental Requirements: Environmental compliance requirements and standards
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