Documents

SPA

Sale and Purchase Agreement

SPA: The legally binding contract between buyer and seller (or developer for off-plan) committing to a Dubai property transaction.

What is SPA?

A Sale and Purchase Agreement (SPA) is the legally binding contract that commits both parties to a Dubai property transaction. For ready property, the SPA is signed between buyer and seller and typically uses the standard DLD MOU template — it specifies the property, price, transfer date, deposit (typically 10%), agent commission split, and any conditions. For off-plan, the SPA is signed between buyer and developer and is more detailed — covering payment plan, construction milestones, handover date, post-handover service charges, and Oqood registration. SPAs are legally enforceable: if a buyer defaults after signing, the seller/developer can keep the 10% deposit and claim additional damages. If a seller/developer defaults, the buyer has rights to specific performance or refund plus damages. All SPAs for off-plan property must be registered on Oqood within 60 days under RERA rules.

Example

After negotiating a AED 2M Marina apartment purchase, the buyer signs an SPA with the seller and deposits a 10% (AED 200,000) cheque held by the agent's firm. The SPA specifies transfer day in 30 days. If the buyer pulls out, the deposit is forfeit.

FAQ — SPA

Is the SPA the same as an MOU in Dubai property?+

Often used interchangeably, but technically distinct. An MOU (Memorandum of Understanding) is a preliminary agreement; an SPA is the final legally binding contract. In Dubai practice, the DLD standard "Form F" MOU is what most ready-property sales use — and is effectively the SPA.

Can I cancel an SPA after signing?+

Buyers can cancel but typically forfeit the 10% deposit unless the SPA includes specific termination clauses. Sellers/developers face similar penalties for default. Always have a conveyancer review the SPA before signing.