The reservation form is the piece of paper that commits you to a unit faster than most buyers realise, and the refund policy on the back of it is where disputes begin.
A reservation form is a document that temporarily holds a specific unit for a prospective buyer, typically for 7 to 21 days, during which the buyer is expected to pay the booking deposit and sign the SPA. A refundable reservation cheque of 5-10% of unit price commonly accompanies it. The refund conditions vary by developer: some return the cheque if the buyer walks away within the hold window, others retain an admin fee of AED 5,000-15,000, others forfeit the entire deposit if the SPA is not signed on schedule.
A client in 2024 reserved a Dubai Hills two-bedroom on a Saturday launch, paid AED 50,000 reservation cheque, then decided on Tuesday to step away. The developer’s policy was non-refundable after 48 hours. We lost the deposit.
Before you sign the reservation form, read the refund clause. Every developer is different. Assuming favourable terms is how refundable deposits become non-refundable.
Related: EOI, Booking Window, SPA, Launch.