---
title: "Reservation fee / booking deposit"
canonical: https://www.uaepropertyagents.com/glossary/reservation-fee
markdown: https://www.uaepropertyagents.com/md/glossary/reservation-fee.md
type: glossary-term
description: "A reservation fee or booking deposit is the first payment made to a developer to take a specific off-plan unit off the market while the contract is prepared."
publisher: "UAE Property Agents (Omnia)"
language: en-GB
usage: "You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting."
---

# Reservation fee / booking deposit

> A reservation fee or booking deposit is the first payment made to a developer to take a specific off-plan unit off the market while the contract is prepared.

Also known as: Booking deposit, Booking fee, Down payment, Reservation deposit, Token.

## What Reservation fee / booking deposit means for a buyer

To secure an off-plan unit you sign a reservation or booking form and pay a deposit. Developers structure this differently: some take the full first instalment of the [payment plan](https://www.uaepropertyagents.com/glossary/payment-plan) at once, often 10% to 20% of the price, while others accept a smaller fixed sum to hold the unit for a few days until the balance of the first instalment arrives. The [4% DLD fee](https://www.uaepropertyagents.com/glossary/dld-transfer-fee) is normally due at the same stage.

The form records the unit, the price and the payment plan, and gives a deadline, commonly within a month, for signing the [SPA](https://www.uaepropertyagents.com/glossary/spa). It also states what happens if you do not proceed, and this is the clause to read. Many forms let the developer keep some or all of the deposit if you withdraw or miss the SPA deadline.

Three checks before paying:

- The money goes to the project's [escrow account](https://www.uaepropertyagents.com/glossary/escrow-account), not to an agent or a general company account.
- The project is registered, which you can confirm on [Dubai REST](https://www.uaepropertyagents.com/glossary/dubai-rest) or, in Abu Dhabi, [DARI](https://www.uaepropertyagents.com/glossary/dari).
- You have seen a draft SPA, or the form says the deposit is refundable if you reject its terms.

A reservation fee differs from an [EOI](https://www.uaepropertyagents.com/glossary/eoi), which is paid before a launch and does not secure a particular unit. On a resale, the equivalent is the 10% deposit cheque lodged with the broker under [Form F](https://www.uaepropertyagents.com/glossary/mou-form-f).

## Related terms

- [EOI](https://www.uaepropertyagents.com/glossary/eoi): An Expression of Interest is a deposit paid before an off-plan launch to join the queue for units; it does not secure a specific home or price.
- [SPA](https://www.uaepropertyagents.com/glossary/spa): The Sale and Purchase Agreement is the binding contract between an off-plan buyer and the developer, setting the price, payment schedule and completion date.
- [Payment plan](https://www.uaepropertyagents.com/glossary/payment-plan): A payment plan is the developer's schedule of instalments for an off-plan home, usually a deposit, stage payments during construction and a balance at handover.
- [Escrow account](https://www.uaepropertyagents.com/glossary/escrow-account): An escrow account is a regulated, project-specific bank account into which off-plan buyers' payments must go, released to the developer only as building progresses.

## In depth

- [Off-plan payment plans explained: 80/20, 60/40, 1% monthly and post-handover](https://www.uaepropertyagents.com/guides/off-plan-payment-plans-explained)


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Source page: https://www.uaepropertyagents.com/glossary/reservation-fee. Published by UAE Property Agents, Omnia Capital Group. You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting.