Stage Payments: How to Set a Payment Schedule Without Conflicts

Staged payments: why a clear schedule matters 📑

Splitting a property price into staged payments is common and sensible. A well‑designed payment schedule protects both parties, sets expectations, and ties releases of funds to verifiable events. This guide gives step‑by‑step advice, sample structures, and contractual safeguards.

Core principles ✅

• Clarity: each payment must have a trigger event such as a signed acceptance act or handover of keys.
• Balance: the initial deposit should be meaningful but leave leverage for the buyer if obligations are not met.
• Documentation: all dates, triggers, and obligations should be written in the contract.
• Guarantees: consider escrow, bank guarantees, or retention to cover defects.

How to design a payment schedule step by step 🔧

1. Identify project milestones. Typical milestones are reservation, contract signing, start of construction, completion of structure, finishing works, and handover.
2. Tie each payment to a measurable condition. For example, final payment after successful acceptance testing or issuance of technical documentation.
3. Set deadlines for performing acceptance procedures. Specify who prepares and signs acceptance acts and within what time.
4. Define acceptable proof of completion: photo reports, signed acts, technical passports, or independent inspection reports.
5. Include protective mechanisms: liquidated damages, retention amounts, escrow accounts, or bank guarantees.
6. Establish a dispute resolution workflow: mediation first, then expert appraisal, and arbitration if needed.

Example schedule (for illustration only) 📋

Use this only as a template to adapt with legal advice:

• Reservation deposit at signing of preliminary agreement — a modest advance (for example, 5–15% of price) to secure the unit.
• Main deposit at signing the purchase contract — a larger payment (for example, 10–30%).
• Payment upon completion of structural works — released on signed acceptance act.
• Payment after installation of engineering systems — on verification and act of completion.
• Final payment after full finishing and handover — with a small retention amount held for warranty rectifications.

Percentages and stages should be tailored to the project type and negotiated with your lawyer.

Contract clauses to reduce conflicts 🛡️

• Precise payment triggers and required documents.
• Timelines for remark submissions and act signing.
• Refund and compensation rules for missed deadlines or defective work.
• Communication obligations and response windows.
• Force majeure clause outlining its effect on the schedule.

Practical security instruments 💡

• Escrow account: funds are held by a neutral party and released after agreed conditions are met.
• Bank guarantee: secures the buyer in case of developer default.
• Detailed acceptance acts with photos and noted defects.
• Independent technical inspections for high-value purchases.

Communication and expectation management 🤝

Good communication reduces disputes. Recommended practice:

• Use one agreed channel for key communications (email or a single messaging thread).
• Appoint a contact person for each party.
• Record decisions in writing and attach them to the contract as annexes.

If a dispute arises ⚖️

1. Gather all documentation: contract, payment receipts, acceptance acts, and correspondence.
2. Propose mediation or an independent technical assessment.
3. Follow the contractual dispute procedure: claim, expert review, then arbitration if unresolved.

Quick pre‑signing checklist ✍️

• Make sure each payment is linked to a clear, verifiable event.
• Verify who signs acceptance acts and in what deadlines.
• Agree on protection mechanisms such as escrow or guarantees.
• Reserve a small retention sum to cover post‑handover defects.

If you are buying or investing in Georgia and need help drawing up a robust payment schedule, BuyHome can assist with contract wording and secure payment mechanisms. Contact us for a consultation or browse listings at https://buyhome.ge/en — we help structure safe and transparent deals.