Real Estate Reservation Agreement Template for United Arab Emirates

The Real Estate Reservation Agreement is a crucial preliminary document used in UAE property transactions to formalize a potential buyer's interest in a property. It is commonly used in both ready and off-plan property sales, particularly in major real estate markets like Dubai and Abu Dhabi. The agreement typically includes details of the property, reservation fee amount, duration of the reservation period, and conditions for converting the reservation into a final sale. It must comply with UAE federal real estate laws and specific emirate regulations, such as RERA requirements in Dubai. This document serves as a binding commitment between parties while due diligence and financing arrangements are completed, providing security for both the seller/developer and the potential purchaser.

1. Parties: Identification of the seller/developer and purchaser with full legal names, addresses, and registration details if companies

2. Background: Brief context of the transaction and property development status

3. Definitions: Key terms used throughout the agreement including Property, Reservation Fee, Purchase Price, and Completion Date

4. Property Details: Specific description of the property including unit number, size, location, and development details

5. Reservation Fee: Amount of reservation fee, payment terms, and status of the fee (refundable/non-refundable)

6. Purchase Price: Total purchase price, payment schedule, and method of payment

7. Reservation Period: Duration of the reservation and conditions for extension or termination

8. Obligations of the Parties: Key responsibilities of both parties during the reservation period

9. Conditions for Conversion: Requirements and process for converting the reservation into a sale and purchase agreement

10. Termination: Circumstances under which the agreement can be terminated and consequences

11. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for disputes