Bidding and Negotiating
This is how the bidding process typically works:
- Your agent will submit an offer on your behalf to the seller’s real estate agent, along with the presentation of your qualifications. This may be done orally or in writing.
- The seller may accept or counter your offer as part of a price negotiation.
- In the case of multiple bids, your agent will work with you to structure a “best and final” offer that you are comfortable with.
- The conclusion of the process will result in agreement upon the price, terms and closing date.
- You and the seller will need to engage capable and experienced Doha-based real estate attorneys to prepare and review a contract of sale.
Going to Contract
Once your offer has been accepted, you will enter the contract stage.
- Your attorney will exercise “due diligence” by asking for certain key documents from the seller or their managing agent. These typically include:
- Proprietary lease or offering plan
- The building’s by-laws
- Statements of the building’s financial condition
- Following your attorney’s review and approval, you will sign the contract of sale. At the signing, it is typical to present a deposit of 10% of the sale price.
- The contract and deposit are forwarded to the seller’s attorney, who will obtain the seller’s signature.
The final step is the closing. The closing usually occurs in the office of the building's managing agent. The exact date should be flexible to accommodate everyone (you, the seller, the attorneys, the banks, and the managing agent). It is best to allow for a potential delay of up to 30 days from the closing date specified in the contract.
Your agent will schedule a final walk-through inspection of the property for you, immediately prior to the closing.
The Buying Process
The steps to purchasing an apartment: Let us assume that you have found the property on which you wish to place an offer and that you have spoken to a bank or mortgage broker (if financing) to determine a comfortable financing price level.
- Offers are made orally or in writing in Qatar. When you have found the right property, a bid or offer will be placed through your agent. They will convey your offer to either the seller's agent or to the seller directly.
- The seller may "counter" your offer. This will begin a negotiation process that will eventually lead to a "meeting of the minds", at which point price, terms, and closing date have been agreed upon.
- A real estate attorney should be involved in all property transactions in Doha but it’s not mandatory. Contact an attorney familiar with real estate in Qatar to represent you. The seller's attorney will begin preparation of a contract of sale, and during that time your attorney will begin to examine the financial condition of the building in which you wish to purchase. Your real estate agent can assist you in finding experienced attorneys.
- After your lawyer concludes that the financial condition is satisfactory, that the by-laws of the building are acceptable to you, and that the contract of sale is also acceptable, your attorney will allow you to sign the contract. At that time you will usually be required to present a deposit of 10% of the purchase price. The contract plus the deposit will then be forwarded to the seller for signature. It is important to note that until all parties have signed the contract, and it has been delivered, the seller can still entertain and accept other offers.
- If financing, you should move forward with your loan application. Your real estate agent can assist you in finding a mortgage broker. It is advised that you pre-qualify for a mortgage with a brokerage firm prior to beginning your housing search.
- When your "package" is finished, it will be reviewed by a MD Properties Manager, and then, assuming it is complete, it will be forwarded to the managing agent for review. No applications will be accepted by a Managing Agent unless they are complete.
- Now you are ready to begin planning for a closing!
The entire process can move quickly assuming a loan can be secured in a timely fashion, one can move from contract to closing in about 30 days.