Good Faith Deposit

A good faith deposit is an initial payment demonstrating the buyer's serious intent to purchase, typically held in escrow and credited toward the purchase price.


Dubai ContextDetails
Typical amountAED 5,000-10,000 for resale
Off-plan10-20% of purchase price
Holding accountAgent or developer escrow
Binding effectCreates preliminary commitment
Refund ConditionsWhen Returned
Financing failureIf contingency included
Title issuesSeller cannot deliver clear title
Inspection problemsMaterial defects found
Seller breachFails to meet obligations
Forfeiture ConditionsWhen Kept
Buyer withdrawalWithout valid reason
Financing defaultFails to pursue mortgage
Contract breachBuyer violates terms

Related Terms

Deposit AgreementEarnest MoneyEscrow Account (DLD-Mandated)Trust Account (Escrow for Off-Plan)Purchase Agreement

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