What are the payment terms for a property with a developer in Dubai? When is the first payment and the last payment?
Typical payment schedule:
- Reservation Deposit:
- Payment is made at the time of booking the property.
- First payment:
- Usually payable upon signing the Sales Purchase Agreement (SPA).
- Installment payments during construction:
- Payments are made at specific intervals according to the progress of construction. For example, there may be payments upon the achievement of certain construction milestones, such as the completion of foundations, structures, finishes, etc.
- Last payment (final):
- Performed at the handover of the property, upon completion of construction and obtaining a Completion Certificate.
Each project may have slightly different terms and payment schedules, so it’s a good idea to read the terms carefully before signing a contract.
