Offer To Purchase Agreement for United Arab Emirates

Offer To Purchase Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formalizes a potential buyer's intention to purchase a property and outlines the terms and conditions of the proposed transaction. This agreement serves as the initial step in the property purchase process in the UAE, detailing the offered purchase price, payment terms, conditions precedent, due diligence requirements, and completion procedures. It incorporates specific UAE property law requirements, including compliance with local property registration regulations and relevant emirate-specific property laws, while providing a framework for the transaction's progression to completion.

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What is a Offer To Purchase Agreement?

The Offer To Purchase Agreement is a crucial document in UAE real estate transactions, serving as the formal initiation of a property purchase process. It is typically used when a potential buyer wishes to formalize their interest in purchasing a property and establish the fundamental terms of the transaction. The document comprehensively outlines the proposed purchase price, payment structure, due diligence requirements, and conditions that must be met for the sale to proceed. In the UAE context, this agreement must comply with federal laws such as the UAE Civil Code and specific emirate-level property regulations. The document is particularly important as it creates legal obligations and serves as the foundation for the subsequent sale and purchase agreement, incorporating necessary provisions for property registration and transfer under UAE law. It provides protection for both parties by clearly documenting the terms of the proposed transaction and the steps required to move forward with the purchase.

What sections should be included in a Offer To Purchase Agreement?

1. Parties: Identification of the buyer (offeror) and seller (offeree) with full legal names, addresses, and any registration details for corporate entities

2. Background: Context of the transaction and brief description of the property being offered for purchase

3. Definitions: Key terms used throughout the agreement including Property, Purchase Price, Deposit, Completion Date, etc.

4. Property Details: Comprehensive description of the property including address, registration details, plot number, and size according to UAE property registration requirements

5. Purchase Price: Specified amount offered for the property and payment structure, including deposit requirements

6. Payment Terms: Detailed breakdown of payment schedule, method of payment, and any conditions attached to payments

7. Due Diligence Period: Timeframe and conditions for buyer's investigation of property title, condition, and other relevant matters

8. Conditions Precedent: Prerequisites that must be satisfied before the agreement becomes binding

9. Completion: Process and requirements for closing the transaction, including required documentation and registration procedures

10. Seller's Warranties: Representations and warranties regarding property title, condition, and legal status

11. Buyer's Warranties: Representations regarding capacity to purchase and source of funds

12. Default and Termination: Consequences of breach and circumstances allowing termination

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant emirate's courts' jurisdiction

14. Notices: Process and requirements for formal communications between parties

15. Execution: Signature requirements and execution formalities as per UAE law

What sections are optional to include in a Offer To Purchase Agreement?

1. Mortgage Contingency: Include when buyer's purchase is contingent on obtaining mortgage financing

2. Property Inspection: Include when buyer requires specific inspection rights beyond standard due diligence

3. Tenant Rights: Include when property is currently tenanted and addresses existing lease obligations

4. Property Management: Include when interim property management arrangements are needed between offer acceptance and completion

5. Broker Provisions: Include when real estate brokers are involved in the transaction

6. Furniture and Fixtures: Include when specific items of furniture or fixtures are included/excluded from the sale

7. Development Obligations: Include for off-plan properties or properties requiring specific development works

8. Force Majeure: Include when specific force majeure provisions beyond standard UAE law are required

What schedules should be included in a Offer To Purchase Agreement?

1. Property Description Schedule: Detailed technical description of property including floor plans, boundaries, and specifications

2. Payment Schedule: Detailed breakdown of payment installments and timing

3. Due Diligence Documents: List of required documents for due diligence review

4. Title Documents: Copies of relevant title documents and property ownership certificates

5. Property Condition Report: Current condition assessment and any identified defects

6. Included Items: Inventory of furniture, fixtures, and equipment included in the sale

7. Required Approvals: List of necessary governmental and regulatory approvals

8. Form of Transfer Documents: Templates of documents required for property transfer under UAE law

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

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Commercial Property

Residential Property

Property Development

Construction

Banking & Finance

Legal Services

Investment & Asset Management

Property Management

Hospitality

Relevant Teams

Legal

Real Estate

Compliance

Property Management

Investment

Business Development

Finance

Operations

Risk Management

Document Management

Relevant Roles

Real Estate Manager

Property Developer

Legal Counsel

Compliance Officer

Property Investment Manager

Real Estate Broker

Asset Manager

Acquisition Manager

Property Portfolio Manager

Real Estate Director

Chief Investment Officer

Commercial Director

Development Manager

Real Estate Analyst

Transaction 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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