Cheque or transfer? How do you pay for a house?
13/01/2026
When you go to a notary to formalise the purchase, there are several ways of paying for your house and registering it:
- Banker’s draft
This is a cheque that is issued by your bank and certifies that the money is blocked and available to the seller. It is used very often because it guarantees that the amount agreed is available to the seller. It is also a nominal cheque that can only be cashed by the beneficiary. You must ask your bank in advance to prepare it so that you can get it from your branch. It can take a few days for the payment to go through because the beneficiary’s bank must check certain things before it is cashed. You should also bear in mind that fees and commissions may be associated with the cheque's issuance and collection.
- TARGET transfer (formerly known as OMF transfer)
A type of transfer between European banks through the TARGET2 system, with no amount limit. The funds arrive on the same day if the payment order is made by the cut-off time set by each bank. If the order is submitted later, it will be paid on the next working day. You should check beforehand if the issuing bank charges a fee or commission for the transfer.
- Instant transfer
As the name suggests, it is instant: funds are transferred in seconds and it works 24/7. These transfers cost the same as what your bank charges for ordinary transfers. In other words, the bank cannot charge you more than what it would have charged you for a normal transfer.
The €100,000 limit on these transfers was lifted on 5 October 2025, making the purchase of a home easier. In addition, the beneficiary verification service, which checks the recipient’s name before processing the payment, is now available, allowing you to cancel the transaction if there is an error. As the order is irrevocable, this service adds security to money transfers.
From the seller’s perspective, the three options provide security when receiving funds. With the cheque, the amount is blocked at the bank of origin and can be collected only by the beneficiary. Both TARGET and instant transfers are irrevocable and allow the beneficiary to verify on the same day that the funds have been transferred.
In short, it is advisable to find out what options are available at your bank, as well as their cost, and to agree on the most convenient payment method for the seller and the buyer, notifying the notary public beforehand.
