The 10% deposit is the sum a buyer commonly pays on signing the sale agreement (MOU) for a Dubai resale — typically around 10% of the price. It secures the deal and is usually held until the transfer completes.
Where you’ll see it
You’ll pay this deposit when signing the sale memorandum, often held by the agent or a neutral party rather than going straight to the seller. It is set against the price at completion, and the contract sets out what happens if either side defaults.
Why it matters
The deposit commits both sides and is the amount most at risk if the deal falls through. Buyers should understand the conditions under which it can be forfeited, and sellers the conditions under which they may have to return it — this is where disputes commonly arise.
What it is not
The 10% deposit is not the buyer’s full equity or down payment, and it is not the same as a rental security deposit. It is the commitment deposit on a sale, governed by the sale agreement.
Example
On signing the MOU, the buyer pays around 10% of the price, held by the agent; at completion it is credited toward the price, and the balance is paid at transfer.
Connected documents and parties
Sale agreement (MOU), deposit receipt; buyer, seller, agent.
Going deeper: related reading: deposit forfeiture and earnest money.
Related Terms
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