Transferring the deposit for real estate is one of the most crucial stages of the transaction. Even the slightest inaccuracy can lead to financial losses or legal complications. Investors, especially those first-time buyers of international real estate, often make the same mistakes that could have been avoided with careful consideration.
Error 1: Transferring to the wrong props
The most common mistake is sending money to the wrong bank account or intermediary account. Sometimes this happens due to carelessness, sometimes due to insufficient documentation verification. The consequences can be serious: the money may be delayed, returned with a fee, or even lost if the account belongs to a fraudster.
To avoid this error, it’s important to carefully check the details and match them with official documents. It’s best to double-check the information several times and document confirmation of each stage of the funds transfer.
Error 2: Lack of written confirmation of the deposit amount
Many investors trust the verbal promises of a manager or agent and transfer the deposit without official confirmation. This creates a risk of misunderstanding: the developer or agent may dispute the amount, leading to conflict.
It’s best practice to have a written confirmation of the deposit, stating the exact amount, date of transfer, and recipient’s details. This document serves as insurance and guarantees that all parties agree to the terms of the transaction.
Mistake 3: Translation in parts without approval
Sometimes investors transfer the deposit in installments, hoping this will speed up the process or reduce risks. Without the seller’s or agent’s approval, this can result in the deposit not being counted as a full deposit, and the transaction being deemed incomplete.
To avoid this, all transfers must be agreed upon in advance and documented in writing. Even if the transfer is split into parts, it is important that each part is confirmed by the recipient.
Mistake 4: Not paying attention to currency and exchange rates
The deposit is often converted from the investor’s national currency to the currency of the purchasing country. An error in the exchange rate calculation or the wrong timing of the transfer can reduce the actual deposit amount. In some cases, the seller may reject the transfer if the amount after the conversion does not match the agreed-upon amount.
It’s important to clarify the currency and exchange rate in advance, fix the transfer amount, and agree on it with the seller or intermediary. This minimizes financial losses and avoids misunderstandings during the transaction.
Mistake 5: Ignoring confirmations and receipts
Even after a successful transfer, investors sometimes fail to receive confirmation from the recipient or fail to keep the receipts. In the event of a dispute, this makes it impossible to prove the deposit was transferred, creating legal risks.
Each transfer must be accompanied by official confirmation: a signed document, email, or scanned receipt with the manager’s signature. These documents guarantee that the deposit has been correctly processed and can serve as evidence in the event of a dispute.
Result
Errors in deposit transfers are a common cause of problems in the early stages of a real estate transaction in the UAE. Incorrect details, lack of confirmation of the amount, transferring in instalments without approval, inattention to the exchange rate, and ignoring receipts —all these issues can lead to delays or losses. Attention, documentation, and monitoring of each stage of the transfer help protect funds and ensure a successful transaction.
