Document background
The Preliminary Sale and Purchase Agreement is a crucial document in UAE property transactions, serving as a binding commitment between parties before the execution of a final sale agreement. This document is particularly important in the UAE real estate market, where property transactions often involve complex regulatory requirements and multiple stakeholders. It is used when parties have reached initial agreement on key terms but need time for due diligence, financing arrangements, or regulatory approvals. The agreement must comply with UAE federal laws and specific emirate-level regulations, including RERA requirements in Dubai. A well-drafted Preliminary Sale and Purchase Agreement typically includes property specifications, payment terms, conditions precedent, and timelines, while providing appropriate protections under UAE law. It's especially relevant for off-plan properties, commercial real estate transactions, or cases where parties need to formalize their intentions before proceeding to final sale.
