Is A Reservation Form Binding In A Dubai Off-Plan Purchase?

A reservation form, sometimes called a booking form, signed in a Dubai off-plan purchase can be a binding contract. The label on the document does not decide the question. Under UAE law, the legal nature of an agreement is determined by its substance: where the form identifies the parties, specifies the unit, records the price and sets out the payment terms, it can create enforceable obligations for both buyer and developer long before any sale and purchase agreement (“SPA”) is signed.

Buyers often treat the reservation form as an expression of interest. Developers often treat it as an administrative step. Both assumptions can prove expensive.

When Does a Reservation Form Become a Contract?