Gap Indemnity Agreement Template for United Arab Emirates

The Gap Indemnity Agreement serves as a critical risk management tool in UAE real estate transactions, addressing the vulnerable period between transaction completion and official registration. This document type becomes necessary due to the potential time lag in the UAE's property registration system, where parties need protection against possible claims or encumbrances that might arise during this interim period. The agreement typically includes detailed provisions about the scope of indemnity, duration of coverage, and claim procedures, all structured in compliance with UAE civil and commercial laws. The Gap Indemnity Agreement is particularly important in commercial property transactions, refinancing arrangements, and complex real estate deals where multiple parties are involved and significant values are at stake.

1. Parties: Identification of the Indemnifier and Indemnitee, including full legal names and addresses

2. Background: Context of the transaction, description of the property, and explanation of why the gap indemnity is required

3. Definitions: Key terms including Property, Gap Period, Losses, Claims, and Registration

4. Scope of Indemnity: Detailed description of what losses and circumstances are covered by the indemnity

5. Duration: Definition of the gap period and when the indemnity begins and ends

6. Indemnifier's Obligations: Specific obligations of the indemnifier including payment terms and response times

7. Claims Process: Procedure for making claims under the indemnity, including notice requirements and documentation

8. Representations and Warranties: Statements of fact and assurances from the indemnifier

9. Limitation of Liability: Any caps or restrictions on the indemnity amount or scope

10. Governing Law and Jurisdiction: Confirmation of UAE law application and relevant courts