The following are the usual documents involved in such transactions:

• Sale and purchase agreement
• Due diligence report
• Assignment or renewal of lease

Sellers are usually very reluctant to give representations and warranties. If they do, they are generally very limited in nature. Therefore, the obligation is on the buyer to undertake comprehensive due diligence. This is especially true because sellers are often reluctant to disclose a great deal of information that one would usually expect to see during the sale process.

The parties are legally bound when the sale and purchase agreement is executed, unless it is subject to conditions such as financing.

Legal title is transferred upon the execution of the sale and purchase agreement and the payment of the consideration.

The buyer usually pays for the following:

• Buyer’s agent’s fees
• Legal costs
• Due diligence costs for consultants who have prepared building condition reports, valuation appraisals and real estate surveys
• Real estate transfer tax (5% in addition to the sale price)

On the other hand, the seller usually pays for the following:

• Listing agent’s fees
• Legal costs
• Income tax on any profit made (zakat) on proceeds from the sale of the real estate, depending on the nationality of the seller