--- title: "Payment plan" canonical: https://www.uaepropertyagents.com/glossary/payment-plan markdown: https://www.uaepropertyagents.com/md/glossary/payment-plan.md type: glossary-term description: "A payment plan is the developer's schedule of instalments for an off-plan home, usually a deposit, stage payments during construction and a balance at handover." publisher: "UAE Property Agents (Omnia)" language: en-GB usage: "You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting." --- # Payment plan > A payment plan is the developer's schedule of instalments for an off-plan home, usually a deposit, stage payments during construction and a balance at handover. Also known as: Instalment plan, Construction-linked payment plan, 60/40, 80/20. ## What Payment plan means for a buyer Off-plan homes in the UAE are paid for in stages set out in the [SPA](https://www.uaepropertyagents.com/glossary/spa). Plans are described by a pair of numbers: the share paid before completion and the share paid at or after it. A 60/40 plan means 60% during construction and 40% on [handover](https://www.uaepropertyagents.com/glossary/handover); 80/20 means 80% and 20%. A typical plan has three parts: a booking deposit ([reservation fee](https://www.uaepropertyagents.com/glossary/reservation-fee)) of 10% to 20%, a series of instalments during construction, and a final payment on completion. Some add a fourth, spread after handover; see [post-handover payment plan](https://www.uaepropertyagents.com/glossary/post-handover-payment-plan). Instalments are interest-free and go into the project's [escrow account](https://www.uaepropertyagents.com/glossary/escrow-account). Read the triggers. Instalments are either date-linked, falling due on fixed calendar dates whatever is happening on site, or construction-linked, falling due when a certified stage such as 30% completion is reached. Construction-linked plans protect the buyer better, since you pay only as the building progresses. With a date-linked plan you can find yourself well ahead of the construction. Points buyers overlook: - The [4% transfer fee](https://www.uaepropertyagents.com/glossary/dld-transfer-fee) is due at the start, on the whole price, on top of the deposit. - A back-loaded plan lowers the early outlay, not the price. The balance at handover must be found in cash or by mortgage, and lending is not assured. - Generous plans are a form of discount. Compare the price with similar units sold on standard terms. - Missing an instalment triggers the default procedure, not a renegotiation. More detail is in [off-plan payment plans explained](https://www.uaepropertyagents.com/guides/off-plan-payment-plans-explained). ## Related terms - [Post-handover payment plan](https://www.uaepropertyagents.com/glossary/post-handover-payment-plan): A post-handover payment plan lets an off-plan buyer take the keys and pay part of the price to the developer in instalments over the following years. - [Reservation fee / booking deposit](https://www.uaepropertyagents.com/glossary/reservation-fee): A reservation fee or booking deposit is the first payment made to a developer to take a specific off-plan unit off the market while the contract is prepared. - [SPA](https://www.uaepropertyagents.com/glossary/spa): The Sale and Purchase Agreement is the binding contract between an off-plan buyer and the developer, setting the price, payment schedule and completion date. - [Escrow account](https://www.uaepropertyagents.com/glossary/escrow-account): An escrow account is a regulated, project-specific bank account into which off-plan buyers' payments must go, released to the developer only as building progresses. - [Off-plan](https://www.uaepropertyagents.com/glossary/off-plan): Off-plan means buying a property from a developer before it is built or finished, paying in stages during construction against a registered contract. ## In depth - [Off-plan payment plans explained: 80/20, 60/40, 1% monthly and post-handover](https://www.uaepropertyagents.com/guides/off-plan-payment-plans-explained) --- Source page: https://www.uaepropertyagents.com/glossary/payment-plan. Published by UAE Property Agents, Omnia Capital Group. You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting.