Deposit Agreement

A deposit agreement is a contract specifying the terms under which a buyer pays an initial deposit to secure a property purchase, including conditions for refund or forfeiture.

Deposit TypeTypical Amount
Good faith depositAED 5,000-10,000
Off-plan deposit10-20% of purchase price
Resale deposit10% of purchase price
Rental deposit5% of annual rent
Key TermsSpecification
AmountStated in agreement
Holding periodHow long deposit secures property
Refund conditionsWhen returned to buyer
Forfeiture conditionsWhen seller keeps deposit
Application to priceCredit toward final payment


Related Terms

Good Faith DepositEscrow Law (Dubai)Escrow Account (DLD-Mandated)Trust Account (Escrow for Off-Plan)Purchase AgreementEarnest MoneyDeposit (Earnest Money)

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