Ishaar’s services address credit risk faced by financial institutions, real estates and other sectors who’s work involve contractual agreements and legal proceedings. This involves the potential risk that a borrower/lessee would fail to commit to the terms and conditions of repaying back to the lender or to oblige to any agreement made between parties, such as delivering the needed product, service or payment. As a result, the affected party faces a risk of loss due to the default and nonperformance of the counterparty.
Therefore, Ishaar serves several sectors in the market through its chosen domicile service to include:
Real Estate Sector
What is Chosen Domicile Service?
The Chosen Domicile Service (CDS) is a legal service implemented by several countries worldwide, specifically when two or more parties are involved in work dealings and agreements. In cases where a legal dispute occurs between the involved parties, an independent third party is then chosen as the designated address to receive any legal documents sent on behalf of the defendant (client), thus facilitating the litigation process considerably.
Resolving financial and real estate disputes often takes long periods of time reaching 12- 18 months in court and thus, it is long and costly procedure faced by several businesses in the market. Financial legal disputes can occur between clients and the bank, tenants and real estate companies and other institutions as well.
How Can Ishaar’s Service Help?
Corporate entities such as banks and real estate institutions will be able to recover back their loans and assets speedily from defaulting clients when subscribing to Ishaar’s service.
As a result, the client won’t have to be located by the court, if the provided address was wrong or has been changed, since Ishaar would receive any legal notification from the court on behalf of the client. In addition, clients won’t have to worry about missing any summons and notifications if their address was changed, since they only need to update Ishaar; the chosen domicile of their new address to ensure the receipt of their court notifications.
Problems faced following the old long Summoning process:
- The court cannot locate the client
- Cases would compile
- Commercial litigation process would be delayed and the case would take years in court before reaching a final judgment.
- This incurs huge costs and time loss by the business (Bank or real estate entity) that is trying to recover back their assets from clients.
& NOW …
After applying Ishaar’s service:
- Faster rendering of a final declaratory judgment (70% reduction in time spent)
- All judgments are issued “in presence”.
- Very fast summoning process.
- Faster asset recovery with less cost and time.
- Reduces the write-off of bad debt.
- In complex financing transactions, the Ishaar solution allows for a simultaneous service of process on all named guarantors/cross guarantors, thus reducing the legal risk inherent in the service of process on this class of party.
With the implementation of Ishaar solution, the average time period that is now invested in a typical legal proceeding is between 7 to 12 weeks only (record time). A 70% reduction in time spent prior to the implementation of Ishaar service which took a year or two in the courts.
The “Main Gain”!
Ishaar’s service decreases the burden on the legal infrastructure within the given economy allowing for faster dispute resolution in different sectors of the economy.