What is the meaning of MOU in real estate?

Memorandum of Understanding aka MOU is a preliminary document that outlines the key terms and conditions agreed upon by parties involved in a transaction. It serves as a foundation for negotiations, detailing aspects like property descriptions, financial terms, and timelines.

In Dubai and the UAE, an MOU is often used before formal contracts are finalized, ensuring all parties are aligned on expectations. Understanding the MOU meaning in real estate is essential for smooth transactions and effective communication between buyers and sellers.