How to get a manager's cheque for real estate sales agreement

Last activity 01 June 2022 by Hosam82

424 Views

6 replies

Post new topic

Armitage7Member21 September 2021 14:36:28

I am in the process of buying a real estate property in Bahrain to apply for self-sponsorship.

I found the property, paid the reservation fee, and asked my (Belgian) bank to emit the manager's cheque

But they told me they have no idea of what a "manager's cheque" is, and they can't emit it. And I'm talking about the private banking service here, not the common bank clerk at the counter.

Since I don't have a CPR, I guess I can't open a bank account in Bahrain either?

So what would be my best option here?
Transfer the money through a lawyer in Bahrain so that his bank emits the cheque? I guess that's gonna cost me a lot.
Transfer the money to the real estate agent so that his bank emits the cheque? That doesn't sound like the safest option.
Transfer the money directly to the real estate developer and actually bypass the manager's cheque? That doesn't seem to be the legal process.

Any better option?

Thanks in advance

XTangBahrain/UAE/Saudi Arabia Expert21 September 2021 15:00:53

11764

A manager's cheque is also called a certified cheque or official cheque....so it may be worth checking again with your bank. However, I would assume that the property payment is in BHD and your bank account is not; in which case, it is not a manager's cheque that you would need but something like a demand draft etc. And even then, considering different countries and so on, seller's might be reluctant to accept it i.e. it will not result in cash in one day (as a manager's cheque drawn on a Bahrain bank would) as it will go through counter parties and clearances.

So practically speaking, your best bet is to transfer money into an escrow account with a lawyer (After setting up a legal vehicle for the same). Or even pay the developer. There is no issue re: legal process as when you appear in front of the notary, all they are asking for is that both parties are in agreement on the transfer of title deed. The manager cheque thing is a safety mechanism to put the buyer/seller at ease i.e. money only changes hand at the spot. The notary doesn't care about that.

AliennActive member21 September 2021 17:28:42

My first thoughts are:
- it would be very risky to transfer the money to the real estate agent, developer or even a lawyer! Don't act in haste! Talk to your bank and ask if they can issue a crossed account payee demand draft. Also, don't pay anything unless you have an iron-clad agreement in place drafted by a reputed lawyer!

XTangBahrain/UAE/Saudi Arabia Expert22 September 2021 08:33:55

11764

That is why I suggested an escrow account with a lawyer. The money is not going to the lawyer - escrow is a vehicle set up to facilitate transactions. The demand draft will not work for his purpose as it is drawn in a different country and will be subject to clearance / counter party timings........and effectively, the seller will receive the money before he is obligated to do anything.

Hosam82Member27 March 2022 08:16:34

Hi mate
Can you update us about what was the solutions for this matter ? I want to know every step before getting started

Thanks

Armitage7Member01 June 2022 06:55:37

I can confirm that getting this "manager's cheque" directly from a foreign bank is not always possible, for all the reasons that XTang explained (different currencies and bank procedures).

In my case, I was buying an apartment from a well-known developer in Bahrain, met the developer twice in person, went to their offices multiple times, and I was accompanied by a certified real estate agent. So I decided that sending the money directly to the developer was "safe enough".

So that's an option, but this is clearly not "the safest way".

If you have any hesitation, follow XTang's advice and open an escrow account with a local lawyer.

Hosam82Member01 June 2022 14:02:18

@Armitage7

Thanks for your reply

can you DM me the name or website for this developer?

Thanks

Articles to help you in your expat project in Bahrain

Getting married in Bahrain
Bahrain allows anyone who resides in the country to get married, irrespective of nationality or religion. The ...
Driving in Bahrain
Expats love the freedom and convenience of driving, and many choose to purchase or rent their own car. But, ...
Opening a bank account in Bahrain
Opening a local bank account is essential for receiving your salary. The Wage Protection System (WPS) is designed ...
Relocating with your pets to Bahrain
One of the decisions to make when relocating to a foreign country is what to do about pets. For many expats, there ...
Starting a business in Bahrain
According to the World Bank Group report for 2019, Bahrain lies 3rd out of 20 nations, for ease of doing business ...
Studying in Bahrain
The universities and colleges in Bahrain are too numerous to mention. The majority are Bahrain institutions, but ...
Education and childcare in Bahrain
Both public and private schools are available in Bahrain, but most expats tend to enrol their children in private ...
Healthcare in Bahrain
Bahrain has world-class medical facilities, health professionals, and easy access to medical treatments. Public ...