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Property Purchase Agreement: Legal Considerations in Dubai

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The real estate market of Dubai is a vital and cost-effective sector catching the eye of investors with its advanced infrastructure and high count on investment. However keeping up with the property purchase process, legal considerations, and the rules of real estate contracts can be difficult for the investors.  In this article, we are going to explore the necessity of drafting a property purchase agreement in Dubai while keeping in mind the legal considerations of real estate contracts.

property purchase agreement is a written document that sketches out the specifications of real estate contracts and property transactions between buyers and sellers. These real estate contracts need to be well-drafted, per the laws and obligations in Dubai before finalizing a property deal. The property purchase agreements are legally binding contracts that should be thoroughly assessed and reviewed before signing.

Essentials of a Property Purchase Agreement in Dubai

  • Acquisition cost: This clearly states the finalized price of the sale along with the currency to be paid, and the payment plan.
  • Property Layout: The property purchase agreement includes the details of the covered area of the property, its location, and any accompaniments included.
  • Financial Transactions and Payment Plan: This includes the mode of payment and the schedule of installments of any kind.
  • Terms and Conditions: The property purchase agreement mentions any terms and conditions that are to be fulfilled before the sale contract proceeds.
  • Closing Date: It includes the date of completion of the financial transactions and thus the official transfer of the ownership of the property.
  • Assurances: The agreement includes warranties to assure the stated details regarding the property.
  • Nullification Conditions: This states the terms and conditions under which the signed contract can be nullified.
  • Conflict Settlement: Methods of conflict settlement are added in the property purchase agreement to resolve any disputes between the buyer and seller.

Legal Considerations When Drafting and Signing a Property Purchase Agreement in Dubai

The following legal considerations should be kept in mind while signing a property purchase agreement in Dubai:

1. Adhere to Regional Regulations:

When drafting a property purchase agreement you must consider the local laws and obligations regarding the real estate contracts. Departments like the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA) govern the laws of real estate deals. It is important to adhere to these rules and regulations to avoid any complications.

2. Evaluate the Developer’s License:

It is important to evaluate the license of the developer before signing the deal to avoid any fraud. Make sure that the developer you are dealing with is registered with the Dubai Land Department and crosscheck their authority with the respective departments. This is crucial to secure your dealings and to be in safe hands.

3. Inspect Project Registration:

Before signing the property purchase agreement you must inspect and verify the project registration. Every real estate contract in Dubai is registered under authorities like the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA). You can access the official websites to check for the project registration in the provided lists to ensure safe dealing.tus nec ullamcorper mattis, pulvinar dapibus leo.

4. Review the Payment Plan:

Thoroughly read and review the payment schedule in the property purchase agreement. Verify the deposit amount and the installment details. Also, add an agreed refunding mechanism in case of nullification of the agreement or any other fallouts.

5. Confirm the Escrow Account:

The dealers and developers in Dubai must have an escrow account that is legally required for payments regarding any property deals. All the developers are legally bound to make sure the investments from the sellers are submitted to the escrow account. Verify the bank account number and title with the bank to ensure the safety of your investments.

6. Scrutinize the Title Deed:

The buyer should get a copy of the title deed to be fully aware of the rights awarded to the owner of the property and also to make sure that the actual owner of the property is mentioned in the property purchase agreement. The buyer should also look for any restrictions the owner can face to avoid insecure deals.

7. Review the Nullification Clause In the Property Purchase Agreement:

Before signing the deal, the buyer must assess and review the termination or nullification clause of the agreement to make sure both parties get a fair policy in case of a dispute. Issues like the developer retaining all the paid investment amount in case of termination can be avoided by thoroughly reviewing the deal beforehand.

8. Conflict Settlement Mechanism:

The buyer must be aware of the laws regarding the settlement of property disputes in Dubai. The property purchase agreement should have conflict settlement clauses per the laws of UAE courts. In case of any doubt, the buyer can consult arbitration lawyers in Dubai for legal advice. This step can help avoid any future complexities in case of a dispute between the seller and buyer.

9. Execute the Memorandum Of Understanding:

The Memorandum of Understanding, also known as the form F, is an official document authorized by the Dubai Land Department (DLD) which can be modified according to the agreed terms and conditions of both buyer and seller and is to be signed in front of a witness. This can help minimize any chances of disagreement between both parties.

10. Review the power of attorney for the designated signatory:

In case your developers authorize a power of attorney for signing the contract on their behalf, you must verify and review the third party involved in the process.

11. Understand the Consequences of Breaching the Agreement:

The buyer must be well-informed about the consequences either party can face in case of breach of the property purchase agreement. The buyer should be aware of his rights to claim compensation in case the developer fails to oblige with the agreed terms in the agreed timeframe.


Several legal considerations are to be kept in mind while drafting and signing a property purchase agreement in Dubai. Adhering to the local laws, evaluating and inspecting all aspects of the real estate contract, and making educated decisions can protect the interests of the buyer. Legal approach and due diligence can help make your property investments beneficial and worthwhile in Dubai.

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