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

Armitage7 · 2021-09-21T16:36:28+02:00

Explore options for obtaining a manager's cheque in Bahrain for real estate purchases. Get insights on navigating banking hurdles and legal requirements.

Armitage7 Member

Member since 13 July 2021

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

XTang Bahrain/UAE/KSA Expert

Member since 22 April 2014

XTangBahrain/UAE/KSA Expert21 September 2021 15:00:53

11938

A manager's cheque is also called a certified cheque or official cheque....so it may be worth checking again with your bank.聽聽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.聽聽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.聽聽

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).聽聽Or even pay the developer.聽 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.聽 The manager cheque thing is a safety mechanism to put the buyer/seller at ease i.e. money only changes hand at the spot.聽 The notary doesn't care about that.

Alienn Active member

Member since 19 January 2021

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!

XTang Bahrain/UAE/KSA Expert

Member since 22 April 2014

XTangBahrain/UAE/KSA Expert22 September 2021 08:33:55

11938

That is why I suggested an escrow account with a lawyer.聽 The money is not going to the lawyer - escrow is a vehicle set up to facilitate transactions.聽聽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.

Hosam82 Member

Member since 18 January 2013

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

Armitage7 Member

Member since 13 July 2021

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.