Documents

MOU

Memorandum of Understanding

MOU: The standard preliminary contract for ready Dubai property transactions, often referred to as "Form F" by DLD.

What is MOU?

A Memorandum of Understanding (MOU), commonly called "Form F" in Dubai, is the standard preliminary contract used for ready (secondary market) property transactions. The MOU sets out the agreed purchase price, transfer date, deposit terms, and any conditions before the formal DLD title transfer takes place. The DLD provides a standardized MOU template that most Dubai real-estate brokers use; for higher-value or complex transactions, parties may use a custom MOU drafted by conveyancers. The MOU is signed by buyer, seller, and broker(s), and is accompanied by a 10% deposit cheque held by the agent's firm (or a third-party escrow agent). Both parties commit to complete the transfer within a specified period (typically 30 days). If either party defaults, the standard penalty is forfeiture of the deposit by the defaulting party.

Example

After agreeing to buy a JVC apartment, the buyer and seller meet at the broker's office to sign Form F MOU. The buyer hands over a 10% deposit cheque (AED 120,000 on a AED 1.2M unit) to be held by the broker. The MOU stipulates DLD transfer in 30 days.

FAQ — MOU

Who holds the deposit cheque after MOU signing?+

Standard practice is the seller's agent's firm or a third-party legal escrow agent. The cheque is post-dated to transfer day and is not banked unless the deal closes.

Is Form F MOU mandatory?+

Not legally mandatory — buyers and sellers can use custom contracts. However, Form F is the DLD-recognized template, broker-familiar, and reduces dispute risk. ~90% of Dubai secondary-market transactions use Form F.