Manager’s cheques are a very common form of payment in the UAE used when buying and renting real estate, cars, other goods and services. It's a very convenient, secure and reliable method of transferring funds from one bank account to another since you don't need to carry large sums of cash, and the cheque can simply be handed over to the recipient. Discover more about manager’s cheques, their purpose, how they differ from regular cheques, how to obtain them and what their role is in the property buying process.

How do the manager’s cheques work?

The steps involved in handling payments via manager’s cheques are quite straightforward:
  • In order to make the payment, the client first deposits the required amount in his account at the bank.
  • Then, the bank holds the funds, confirms that the funds are available, and issues a cheque to the recipient.
  • The recipient of the cheque contacts the bank, presents the cheque, and the bank transfers the specified amount to his/her account.

What makes manager’s cheques different from regular bank cheques?

A manager’s cheque is a cheque or a document certified by the manager or the head of a particular bank branch, bearing the seal and signature of the person who issued it. Other names for this type of cheque include treasury cheque or cashier's cheque. Unlike regular bank cheques, manager’s cheques cannot be issued without the actual availability of the funds in question. Manager’s cheques are issued in AED only and you must deposit the exact amount in the bank in exchange for the cheque and cover the associated charges, ranging from AED 20 to AED 200 per cheque, depending on the bank and the account package. 

Regular cheques come in cheque books. Each cheque book includes a set number of numbered cheques as well as a register that can be used to record cheque information and account balances. Before the cheque is handed over in exchange for products or services or any money, the consumer must complete and sign it. 

It is common in Dubai to use these to pay rent, so you fill in the information on the cheque and you pay the rent in 4 or 6 cheques. Since credit and debit cards, online banking, and smartphone apps have become widely available, cheque books are becoming obsolete.

The banks will issue cheque books and regular cheques only for people living in Dubai, that is, for individuals with UAE residency and Emirates IDs. On the other hand, manager’s cheques can be issued even to non-residents if they open a non-resident bank account in a UAE bank. 

What are the advantages of paying by manager’s cheque?

Some of the characteristics and benefits of manager’s cheques include the following: 
  • Cheque payments guarantee 100% availability of funds in the account.
  • By handing the cheque over to the bank funds are transferred immediately, unlike a regular SWIFT payment. Plus, the cost is much lower than with SWIFT payments.
  • It can only be received by the designated recipient (e.g. Developer in a property buying process).
  • Once the amount on the account has been frozen and a cheque has been issued, you can only unfreeze it by returning the cheque to the bank. This ensures that you cannot revoke the payment after the cheque has been sent.
  • It's not enough to say that the cheque was lost and ask the bank to cancel the payment after it is lost. There are a number of issues that need to be handled with the bank following the loss of a cheque.

How to get a manager’s cheque?

In order to issue a cheque in the UAE, you must have a bank account with funds in it. There are two paths to follow for opening a bank account in the UAE. Having an Emirates ID or UAE residency will allow you to open a regular resident bank account. On the other hand, if you do not possess the above mentioned documents, you will need to open a non-resident bank account so that you can obtain a manager's check.

In case you already have a bank account, you simply need to contact the bank, provide the recipient's information, and wait for the cheque to be issued. Due to the Central Bank’s new, fully electronic, image-based cheque clearing system that links all banks in the UAE, cheques are cleared in only a couple of hours.

Who can issue a manager’s cheque apart from banks?

Escrow companies offer manager's cheque issuance service for non-resident property buyers throughout the UAE. After confirming and processing your ID and bank documents, these companies transfer the funds, hold the funds and issue a manager’s cheque on your behalf, allowing you to complete your purchase.
A diagram showing the escrow process.

What is the role of a manager’s cheque in real estate transactions in the UAE?

Manager’s cheques are used to pay a wide range of things when buying a property in the UAE. When buying a property directly from a developer, the cheque (with the whole amount or installments based on a payment plan) is issued in the name of the company and handed over to the developer. Manager’s cheques are also used to pay the 4% fee to the Dubai Land Department, title deed fees or the Real Estate Registration Trustee fees.

On the other hand, when purchasing a property from an individual, then the cheque is in the name of the seller. Cheques like these are extremely popular among those looking to buy and sell properties on the secondary market.

Moving forward

With better understanding of manager’s cheques, as the preferred form of payment in the UAE, you can confidently proceed with property buying in the Emirates. In case you need assistance in any step of the way, get in touch with our experienced real estate and mortgage professionals and finalize your purchase hassle free. 

Kredium’s search portal currently features over 5000 properties available for sale, so feel free to browse it and find the property that’s perfect for you. If you’ve selected a property but need financing through a mortgage, visit our pages dedicated to UAE nationals, expats, or non-residents to learn more, register on our website and apply for a loan online. With our mortgage calculator, you can also estimate your monthly installments and accompanying costs. Lastly, to get updated on relevant topics related to Dubai/UAE real estate and mortgages, visit our blog section.
Photo credits:
  1. Photo | khaleejtimes
  2. Photo | Mexico relocation guide

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