Glossary · The buying process
Payment plan
Also called: Instalment plan, Payment schedule
In short
The schedule that divides the price into a reservation fee, a contract payment, instalments during construction and a balance at transfer. Each developer sets its own.
What it means
A payment plan states what you pay and when. It is annexed to the sale and purchase agreement and binds both sides: you to pay on the dates, the developer to accept the price in those stages.
Typical shapes
- A smaller share during construction and the larger share at transfer, for example 30 and 70 percent.
- Stage payments tied to construction milestones, common for villas.
- A short plan for projects near completion.
These are typical patterns from the market, not rules.
What to check
- Whether instalments are monthly or tied to milestones, and who confirms a milestone.
- The interest on late payments and the grace period before the developer may cancel.
- What is due on top at transfer: fees, the sinking fund, common fees in advance.
- That a plan is not a loan. It ends at transfer, when the whole balance is due.