An off-plan developer is requesting future cheques for payment installments. Is this normal?

Yes. It's a standard practice in Dubai's off-plan real estate market for developers to request post-dated cheques for installment payments.

This allows them to have a degree of financial security and helps manage the project's cash flow.

Dear questioner

When it comes to off-plan property purchases, particularly in markets like Dubai, requesting future cheques for payment installments is a relatively common practice.

Verify that the off-plan project is registered with RERA and that escrow accounts are in place. This is very important.

Greetings,

Yes, it is common for off-plan developers in the UAE to request post-dated cheques for future installment payments.

However, before proceeding, it is essential to review the sales agreement, payment terms, and developer's compliance with RERA regulations to avoid potential risks.

For a thorough legal review and to safeguard your interests, book a consultation with Future Vision for Advocacy and Legal Consultancy today!

Let us know if you need legal representation.

We are happy at Future Vision Law Advocates and Legal Consultancy to assist you and provide the best legal services that meet your needs.

To contact us, you can call or WhatsApp us.

Dear STF,

Thank you for your inquiry.

It is normal for off-plan developers in the UAE to request post-dated cheques for future installments as part of the payment plan.

These cheques should align with specific construction milestones and be outlined in your sales agreement.

Key points to consider:

Ensure the payment schedule and terms are clearly defined in the contract.

Check if the developer has a bank guarantee or escrow account to protect your funds.

Be aware of risks, such as delays in construction, that may affect the payment schedule.

If you need further assistance reviewing the contract or have concerns, feel free to contact me.

Best regards,

Mohammed Salah

Legal Consultant

Hello!

It’s not uncommon for off-plan developers to request future cheques for payment installments but make sure the payment schedule and terms are clearly outlined in your agreement.

If you're providing post-dated cheques, be aware that some banks might impose certain restrictions or fees for future-dated payments.

Kindly share your contact details or reach out by phone for further understanding of the matter and guidance.

Badr Legal Consultants

It's not uncommon for a real estate developer to request future cheques for installment payments, especially in off-plan real estate projects.

This method is used to ensure payment of due amounts according to the agreed-upon schedule.

This type of payment is a way to secure the remaining amounts and spread the burden of payment over a period of time, providing convenience for both the seller and buyer.

However, it is important to ensure that these cheques comply with the terms of the sales contract agreed upon between the two parties.

The cheques must be clearly dated and identified to avoid any future confusion.

It is also advisable to have clear legal guidelines regarding the use of these cheques and the timing of their collection to avoid any potential problems related to the buyer's payment obligations.

Dear,

the law does not require giving the developer cheques, but if both parties agree to this, it is permissible.

In any case, we do not recommend giving cheques to the developer.

The payment plan mentioned in the contract must be followed.

Greetings,

You have signed a purchase agreement for a unit and provided checks, so no one else has the right to request any checks under any name.

Best Regards