Questions & Answers
Is it safe to accept a property buyer’s 10% deposit from a third party?
As the owner, when selling a real property in Dubai, the 10% security deposit given by the buyer is in the name of 3rd party and not issued by the buyer himself.
Is it ok to accept and sign Contract F to proceed? What will be my potential exposure? Thx
Be advised that accepting a 10% deposit from a third party is possible but carries risks, including enforceability and refund disputes. Ensure written authorization from the buyer and clear documentation of the deposit.
For more details, please share your WhatsApp number so we can review your documents and assist you.
Accepting a 10% security deposit from a third party (not the buyer directly) is not recommended without proper legal verification. While it is sometimes used in practice, it may expose you to risks such as:
- Difficulty enforcing the deposit if the buyer defaults.
- Challenges proving the buyer’s commitment under Contract F.
- Potential disputes if the third party later claims no liability.
To protect yourself, you should ensure the source of funds, liability, and buyer’s obligations are clearly documented before signing.
For a proper risk assessment and to ensure the contract is legally secure, we recommend booking a consultation or appointing Future Vision for Advocacy and Legal Consultancy to handle the transaction on your behalf. We are happy at Future Vision Law Advocates and Legal Consultancy to assist you and provide the best legal services that meet your needs.
Hello, as per your query, if the security cheque is not issued by buyer then you should not proceed with Contract F, since if there is any default from the buyer, then you can not sue the buyer.
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