The Preliminary Agreement For Sale And Purchase is a critical document in UAE property transactions, used when parties have reached initial agreement on key terms but need to formalize their intentions before proceeding to a full sale and purchase agreement. This document is particularly important in the UAE real estate market, where property transactions must comply with both federal laws and emirate-specific regulations. It typically includes essential details such as property specifications, payment terms, due diligence requirements, and conditions precedent. The agreement protects both parties during the interim period between initial agreement and final sale, establishing clear obligations and timelines while allowing for necessary approvals and checks to be completed. It's commonly used in both residential and commercial property transactions, and must align with UAE Civil Code requirements and relevant property laws in specific emirates.

1. Parties: Identification and details of the seller and purchaser, including full legal names, addresses, and registration details for companies

2. Background: Context of the transaction, including brief description of the property and parties' intention to enter into a sale and purchase transaction

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Comprehensive description of the property including location, size, registration details, and any included fixtures and fittings

5. Purchase Price: Agreed purchase price and payment structure, including deposit amounts and timing

6. Deposit Terms: Details of the deposit amount, payment timing, and escrow arrangements

7. Conditions Precedent: Conditions that must be satisfied before proceeding to the main sale and purchase agreement

8. Due Diligence: Timeline and scope of the due diligence process

9. Timeframe: Timeline for completing the preliminary agreement and moving to the main agreement

10. Representations and Warranties: Basic representations and warranties from both parties

11. Termination Rights: Circumstances under which either party may terminate the preliminary agreement

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

13. Execution: Signature blocks and execution formalities