Why do banks require a security cheque when getting a mortgage?

Security cheques are required by banks in the UAE as they are used in instances where the borrower fails to meet the repayments for the mortgage. Should this happen, the bank will present the cheque and when it bounces they will then be able to initiate a legal case to take possession of the property to repay the outstanding debt.

This is not very different to other countries where the bank will have it written into their contract that they can repossess the property where the client defaults on the mortgage.

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