10 Types Of Real Estate Contracts in Dubai You Should Know

What is a Real Estate Contract?

A real estate contract is a legally binding agreement that governs a property transaction. It outlines the responsibilities of each party, be it the buyer, seller, landlord, tenant, or agent, and protects their interests by detailing every aspect of the transaction, from price and timelines to penalties and exit clauses.

In Dubai, these contracts are regulated by the Dubai Land Department (DLD) and Real Estate Regulatory Agency (RERA) to ensure transparency and trust across the market. Most forms follow a standardised structure, helping to simplify deals while reducing disputes.

Main Types of Real Estate Contracts in Dubai

The following types of real estate sales contracts and tenancy agreements are used in the vast majority of property transactions across Dubai.

Form A – Seller Listing Agreement

A Form A is the first legal step when you want to sell your property. The Form A is an official contract between a property owner and a RERA-registered real estate broker. It gives the agent the legal right to market and sell the property. It includes:

• Property details and asking price

• Duration of the listing agreement

• Broker’s commission structure

• Seller’s obligations (e.g. availability for viewings, accuracy of documentation)

Only brokers holding a valid Trakheesi permit can advertise a property, and the seller may choose to list the property exclusively or with up to three agents using separate Form A contracts.

Form B – Buyer Representation Agreement

A Form B is used when a buyer wants exclusive assistance from one real estate agent. It outlines: 

• The buyer’s criteria (budget, location, property type)

• The scope of the broker’s responsibilities

• Commission payable by the buyer

• Duration and termination clauses

It ensures the agent is acting in the buyer’s best interest and prevents dual representation conflicts.

Form F – Unified Sales Contract (MOU)

Once a seller has accepted an offer from a buyer, the next legal step is the Form F. The Form F, also known as the Memorandum of Understanding or MOU, is an essential document that outlines all the agreed upon terms and conditions between the two parties. These include:

• Sale price and payment terms

• Timeline for transfer

• Deposit amounts

• Obligations for handover

• Fixtures and fittings 

• Any further agreed-upon terms

Form F is usually signed digitally by both parties and becomes an essential document for the property transfer process in Dubai. 

Sale & Purchase Agreement (SPA)

In Dubai, the Sale and Purchase Agreement (SPA) is the definitive contract between a real estate developer and a buyer for an off-plan property, where a unit is still under construction or has not yet been handed over.

Once the buyer signs the reservation form and pays the initial deposit, the SPA is issued by the developer and signed by both parties. This legally binding contract outlines:

• Total property price and payment instalment schedule

• Construction milestones and final handover date

• Penalties for delays or non-payment

• Developer’s obligations (e.g. fit-out, approvals, DLD registration)

• Warranty periods and maintenance terms

• Dispute resolution clauses

The Sales and Purchase Agreement must be registered in the DLD Interim Registry (Oqood) to legally recognise the transaction until the property handover. Upon project completion, full ownership is formalised with a title deed.

Unlike a Form F, which is used in secondary market transactions, the SPA is drafted and issued by the developer rather than a government template, though it must still adhere to DLD standards.

Ejari Tenancy Contract

Whilst the previous forms have been types of real estate sales contracts, the Ejari contract relates to rental transactions. 

All lease agreements in Dubai must be registered through the Ejari system. To do this, a standard Ejari contract is drawn up, which includes details such as the:

• Annual rent amount and payment schedule

• Security deposit terms

• Maintenance responsibilities

• Notice period and renewal terms

This is legally required for government services, visa processing, and dispute resolution. Plus, Ejari protects both tenants and landlords by formalising the tenancy and ensuring compliance with RERA regulations.

Specialised Real Estate Contracts

Beyond standard agreements, Dubai’s property market includes several specialised types of real estate contracts used in more complex or niche scenarios.

Form I – Agent-to-Agent Agreement

When two brokers collaborate on a transaction, one representing the seller and the other the buyer, they sign Form I to confirm commission splits and cooperation terms. It ensures transparency between agencies and prevents future disputes. 

Form U – Termination of Contract

This is the formal cancellation notice used to terminate Form A or Form B agreements. Either party may issue Form U with a 7-day written notice, ending the broker relationship in line with RERA protocol.

Reservation Form (Off-Plan)

Before an SPA is signed, many developers issue a reservation form that confirms:

• Buyer’s intent to purchase

• Unit number and specifications

• Down payment and reservation amount

• Timeline for completing the SPA

While not legally binding in the same way as the SPA, it serves as an important first step in securing an off-plan property.

Lease-to-Own Contracts

Also known as rent-to-own, these hybrid agreements allow tenants to apply a portion of their rent towards eventually owning the property. Whilst less common in Dubai than in some other markets, they can benefit buyers seeking flexibility and a lower entry point to buying a property.

Key features of a rent-to-own real estate contract include:

• Fixed rental period (typically 3–5 years)

• Pre-agreed purchase price

• Portion of rent credited toward ownership

• Option to buy before contract expiry

Musataha Agreements

Whilst less commonly known than the previously mentioned types of real estate contracts, Musataha contracts grant the right to build or develop on land owned by another party, typically for a period of 25 to 50 years. These are often used for:

• Hotels and commercial developments

• Agricultural projects

• Industrial sites

The contract must be registered with the DLD and grants the musataha holder full development rights over the land for the duration of the agreement.

Usufruct Agreements

A usufruct contract allows someone to use and benefit from a property they do not own for a set period, commonly between 10 and 99 years. It does not allow for structural changes but permits residential or commercial use. This is often used by:

• Institutional investors

• Hospitality groups 

• Family office arrangements 

These rights are also registered with the DLD and can be transferred under certain conditions.

Common Mistakes to Avoid in Real Estate Contracts

Mistakes in real estate contracts can delay transactions or expose you to legal risk. Here’s what to watch for:

• Failing to register: Unregistered contracts (such as not registering Ejari) aren’t enforceable in court and would not protect in the event of disputes. 

• Confusing contract types: Different contracts, such as the SPA and Form F, serve different purposes. Use the right one for the right transaction.

• Not reviewing penalty clauses: Ensure timelines, handover dates, and default clauses are clearly defined.

• Skipping termination terms: Failure to properly understand the terms and conditions could lead to problems or penalties in the event you need to terminate the contract. 

• Relying on verbal agreements: Always formalise any changes or understandings in writing within the contract.

Conclusion

Understanding the types of real estate contracts used in Dubai is crucial for making informed, safe, and smart property decisions. From Form A to Ejari, and from Form F to SPAs, each contract plays a vital role in shaping how properties are sold, leased, and developed.

Whether you’re working with a broker, a developer, or a private seller, ensure every document is registered, reviewed, and aligned with Dubai’s legal framework. Partnering with experienced, RERA-certified advisors, like the team at Engel & Völkers Dubai, ensures every step is handled with care, transparency, and professionalism.

In a market as sophisticated as Dubai’s, well-structured contracts aren’t just paperwork; they’re peace of mind.