Real Estate Earnest Money Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Real Estate Earnest Money Agreement

I need a Real Estate Earnest Money Agreement for a luxury residential villa purchase in Dubai Marina, with a 5% earnest money deposit of AED 500,000, and completion scheduled for March 2025.

Document background
The Real Estate Earnest Money Agreement is a crucial document in UAE property transactions, used to formalize a buyer's serious intention to purchase real estate by providing a deposit. This agreement type is essential in the UAE real estate market, where property transactions must comply with strict regulatory requirements, including specific Emirates' real estate laws and federal regulations. The document serves to protect both buyer and seller interests by clearly defining the terms of the earnest money deposit, conditions for its return or forfeiture, and the timeline for completing the transaction. It typically precedes the final sale agreement and must address UAE-specific requirements regarding property registration, escrow accounts, and foreign ownership restrictions where applicable.
Suggested Sections

1. Parties: Identification of the seller and purchaser with full legal names, Emirates ID numbers, and contact details

2. Background: Brief context of the transaction and purpose of the agreement

3. Definitions: Key terms used throughout the agreement including Property, Earnest Money, Closing Date, etc.

4. Property Description: Detailed legal description of the property including title deed number and registration details

5. Purchase Price: Total purchase price and payment structure

6. Earnest Money: Amount of earnest money, payment terms, and escrow agent details

7. Escrow Terms: Terms governing the handling and release of earnest money

8. Due Diligence Period: Timeframe and terms for buyer's property inspection and review of documents

9. Closing and Transfer: Closing date, process, and requirements for property transfer

10. Default and Remedies: Consequences of default by either party and available remedies

11. Governing Law and Jurisdiction: Specification of UAE law application and relevant Emirate jurisdiction

12. Notices: Process and addresses for formal communications between parties

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Financing Contingency: Used when purchase is contingent on buyer obtaining financing

2. Property Condition: Used when specific property conditions need to be addressed or remedied

3. Foreign Ownership: Required when buyer is a foreign national, addressing specific requirements

4. Broker Representation: Include when real estate brokers are involved in the transaction

5. Property Management: Used for properties in managed communities or with specific maintenance requirements

6. Tenant Rights: Required when property is currently tenanted

7. Development Completion: Used for off-plan properties or properties under construction

Suggested Schedules

1. Schedule A - Property Details: Detailed property specifications, including floor plans and boundaries

2. Schedule B - Payment Schedule: Detailed breakdown of payment terms and deadlines

3. Schedule C - Due Diligence Documents: List of required property documents and certificates

4. Schedule D - Property Inventory: List of fixtures, fittings, and items included in the sale

5. Appendix 1 - Property Title Deed: Copy of current title deed

6. Appendix 2 - Property Photos: Current photographs of the property

7. Appendix 3 - Broker Agreements: If applicable, agreements with real estate brokers

8. Appendix 4 - Power of Attorney: If applicable, power of attorney documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Relevant Industries

Real Estate

Property Development

Construction

Banking & Finance

Legal Services

Property Management

Investment & Asset Management

Hospitality (for hotel/leisure properties)

Retail (for commercial properties)

Professional Services

Relevant Teams

Legal

Real Estate Operations

Compliance

Sales

Business Development

Risk Management

Property Management

Contracts Administration

Investment

Corporate Services

Relevant Roles

Real Estate Manager

Property Developer

Legal Counsel

Compliance Officer

Real Estate Broker

Property Manager

Investment Manager

Escrow Officer

Contract Administrator

Real Estate Transaction Coordinator

Chief Legal Officer

Business Development Manager

Sales Director

Asset Manager

Risk Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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