Post-handover payment plan

A Post-handover payment plan is a flexible payment model for property purchases where part of the purchase price is paid in agreed instalments after the property has been handed over. This form of financing, which is very popular in Dubai, allows buyers to use the property while paying off the balance over a fixed period of time. Typically, 40-60% of the purchase price is paid until handover, with the remainder paid in monthly or quarterly instalments over 3-5 years.

The Post-handover payment plan has established itself as an innovative financing solution in Dubai and offers attractive benefits to both buyers and sellers. This payment method differs fundamentally from traditional financing models and has the Dubai property market significantly influenced.

Functionality and structure:

  • One Down payment of mostly 10-20% at contract signature
  • More Payment by instalments during the construction phase (for new buildings)
  • A larger payment for Handing over the keys (mostly 40-50%)
  • The remaining amount is paid in regular instalments after handover

Advantages for buyers:

  • Lower initial capital requirement
  • Alternative to traditional bank financing
  • Immediate utilisation of the property
  • Frequently interest-free instalment payments

In the context of the Dubain property market, the Post-Handover Payment Plan is particularly relevant as it makes it easier for foreign investors to acquire property. The Dubai Land Department regulates these payment plans and ensures that both parties are legally protected.

Important considerations:

  • Checking the creditworthiness of the developer/seller
  • Precise documentation of all payment agreements
  • Understanding the legal framework
  • Protection through OqoodPre-registration

Please note that the exact conditions may vary from project to project. It is advisable to compare different offers and check the payment terms carefully. Get support from a qualified property consultant to find the best solution for you.

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