Procedure

Steps for Lease Rights Transfer of a Resort Island Property in the Maldives

Procedure:

1. Confidentiality Agreement (NDA)
   • The buyer signs a Non-Disclosure Agreement with the finder or mandate holder.
   • This agreement protects all sensitive information exchanged during the transaction.
   
2. Submission of Letter of Intent (LOI) and Proof of Funds (POF)
   • The buyer submits a formal LOI to the property owner, with a copy to the mandate holder.
   • The LOI outlines the buyer’s intention to acquire the lease rights and states the key terms of the offer.
   • The buyer also provides Proof of Funds or a company profile to demonstrate financial capacity.
   
3. Payment of Non-Refundable Deposit for the Exclusivity Period
   • The buyer pays a non-refundable deposit of USD 200,000 to secure the exclusivity period.
   • This payment serves as a financial guarantee and is not refundable under any circumstances.
   
4. Exchange of Documents and Signing of MOU
   • Both parties exchange all relevant documents, including property details, lease agreements, and compliance records.
   • A Memorandum of Understanding is signed, establishing the exclusivity period for due diligence.
   
5. Due Diligence by the Buyer
   • During the exclusivity period, the buyer conducts full due diligence, including:
   – Verification of lease agreements and terms
   – Review of environmental and regulatory compliance
   – Assessment of financial obligations and liabilities
   – Confirmation that the property meets all required standards
   
6. Due Diligence by the Owner
   • The owner conducts due diligence on the buyer, including:
   – Evaluation of the buyer’s financial standing
   – Verification of the buyer’s ability to meet the lease terms and obligations
   
7. Finalizing the Sale and Purchase Agreement (SPA)
   • After successful completion of due diligence on both sides, the parties negotiate and finalize the SPA.
   • The SPA includes:
   – Full details of the lease rights transfer
   – Payment terms and schedules
   – Any required regulatory or government approvals

Timeline:
• From signing the MOU to completion of the SPA, the process typically takes 45 to 60 days.

For more information, please contact us on WhatsApp at +960-763-5900 or by email at [email protected]