Booking Deposit, Arbun or Down Payment? When You Get Your Money Back
When you like an apartment, the seller or developer often asks for money on the spot to hold it. Several terms get mixed up: booking (seriousness) deposit, arbun, down payment and contract payment. The difference decides whether you get your money back if you, or the seller, walk away. Golden rule: never pay without a written document stating what the money is and whether and how it is refundable.
This is general information, not legal or financial advice. Have a lawyer review any booking form or contract before you sign.
The four terms
1. Booking deposit (jiddiyat hagz)
A relatively small amount that holds the unit for a set period until contracting. Refund terms vary: some developers refund it in full if no contract is signed, some deduct admin fees, others keep it. Read the booking form first.
2. Arbun
The arbun has a specific legal meaning in Egypt. According to Article 103 of the Civil Code, as quoted in a legal article on Mohamah.net, paying an arbun when the contract is made gives each party the right to withdraw unless they agree otherwise. If the payer withdraws, he loses it; if the recipient withdraws, he returns double, even without proven harm.
3. Down payment
Part of the price paid at signing and deducted from the total, with the rest paid in instalments or on handover. It usually means the contract is binding, and withdrawal is governed by the contract's termination and penalty clauses.
4. Payment on account
Money paid toward the price and counted against it. Make sure the document says so explicitly.
Questions to ask before paying
- What exactly is this amount called in the document?
- How many days is the unit held, and what happens after?
- Is it refundable if no contract is signed, fully or partly, and within how long?
- Will it be deducted from the down payment or price?
- What if the seller raises the price or sells to someone else during the hold?
- Is the person collecting the money formally authorised?
Clauses that protect you
- Unit number, floor, area and total agreed price.
- Clear start and end dates for the hold.
- Refund amount, timeline and method.
- A price freeze during the hold.
- Explicit deduction from the price at contracting.
- An official receipt in the seller's or company's name.
Common mistakes
- Cash with no receipt: pay by bank transfer or cheque to the selling party where possible.
- Booking under pressure: "last unit" or "offer ends today" pushes people to pay before reading. Ask for a short review period.
- Confusing booking with contracting: a booking form is not a sale contract; review the final contract before paying the down payment.
- Ignoring cash flow: a booking amount is usually followed quickly by a larger down payment. Make sure you can cover it.
Pre-payment checklist
- Seller and collector verified.
- Amount clearly named in writing.
- Refund terms and hold period written down.
- Total price fixed in the document.
- Traceable payment and official receipt.
- Down payment and instalments fit your budget.
FAQ
Do I get the booking deposit back if I change my mind?
It depends on the booking form. Some developers refund it fully or minus fees; some do not.
What if the seller backs out after I paid an arbun?
The general Civil Code rule is that a recipient who withdraws returns double, unless agreed otherwise. Ask a lawyer about your case.
Should the amount be called arbun or a payment toward the price?
They have different effects: an arbun may let either side withdraw at a cost, while a price payment confirms commitment. Discuss the wording with a lawyer.
Can I pay a broker?
Safer to pay the selling party directly with a receipt in its name, unless the broker has written authority.
Before contacting any seller, Masari lets you compare unit prices, floor plans and payment plans in one place.