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Contracts whats in them / info / what to do on late handover etc

Discussion in 'Egypt property' started by Zeiad Yehia, Feb 25, 2008.

  1. Zeiad Yehia

    Zeiad Yehia New Member

    I have added Zeiads comments about handovers into this sticky thread now.

    Regarding the topic of this thread, I'd like to draw out the main lines surrounding the handover issue.

    We can classify the entire issue to two main stages (points):

    Stage (1): Prevention:

    Securing a transaction - as mentioned before in another thread - is the most important part of it. Securing a transaction is a long and complicated procedure and it includes many sub-procedural measurments. One of these measurments - an essential one - is revising a contract to check for a lot of certain subjects. One of these subjects is handover date.

    A purchaser shall make sure that the date is fixed in the contract to begin with. Then make sue that sanction in case of delay exists, and should be satisfied with the sanction.

    This simple procedure preserves the purchaser's right to claim compensation in the event the developer had delayed.

    Stage (2): Taking Action:

    Now the assumption is that the handover date was exceeded, and the developer failed to meet that date - it happens a lot, you know ;) - and you want to get your property deliver inorder to live in, to rent out, or just because...

    The most proper way to take first is contacting the developer, either by yourself or through a representative (Solicitor, Agent, Friend...etc.) and make sure the developer gets the point that you are upset of the delay yet friendly, and you should initiate enquiring "what can thedeveloper offer to make you satisfied?" And listen carefully to what they have to say. If the offer was acceptable, then it is all good! No problems! If the offer was unacceptable then negotiations to enhance the offer take place.

    However, if all the previous attempts resulted in failure, then official steps shall be taken.

    The purchaser (or their solicitor) "hereinafter referred to as "The Reporter" shall issue a police report, having the original contract and a photo copy with them, where the handover date is shown. The Reporter shall give their saying and claim either instant delivery (according to terms and agreements) or compensation.

    The tourism police will refer it to the main police station, where it will have a new number, and sent to the prosecutor.

    Now if there was no follow-up, the case will die in its cradle. The solicitor must make sure the case is moving in its normal path, and based on this report / number sue the developer for compensation according to the contract's terms and agreements plus compensation for any additional tort that was a consequence of this delay and nonpayment, provided that an "evidence" in case if additional tort must be provided to the court to "link" the deed to the tort, or in other words...to prove that that additional tort was a normal, logical, and PRACTICAL result of the developer's fault.

    Most developers will tend to avoid the official part and solve it amicably, especially that they care for their image and reputation.

    Zeiad Yehia
    Solicitor
     
  2. MrSkipsey

    MrSkipsey New Member

    Contracts,........What should be in them?

    As myself and many others are awaiting contracts for various developments I was wondering if those who have completed/handed over would like to post a few things that we should make sure are written into our contracts.

    As this is my first bricks and mortor purchase I dont really want to leave anything out.

    So,......If anyone would like to post a copy (various details removed) of their contract or what they had to have added to the original contract Im sure myself, along with many others, would be extremley grateful.
     
  3. dave99

    dave99 New Member

    Sample contract should be available from all developers


    All developers / agents should send you a sample contract so you should be able to collect a set and compare easily.
    Look out for the one sided terms & conditions.
    ..
    .
    .
     
  4. queenie40something

    queenie40something Senior Member

    Heres mine...make sure it is in both Arabic and English - the courts in Egypt will use the Arabic version. Make sure things like maintenance charge is included, a late penalty from the developer if the handover is late, if you have sole us of a roof terrace make sure this is noted, the size and what you have paid for the property to name a few.
     

    Attached Files:

  5. MrSkipsey

    MrSkipsey New Member

  6. RedSeaInvestor

    RedSeaInvestor New Member

    .....also I learned that you should have the contract written by an Egyptian attorney. I know of a case where a contract was written by a lawyer in the UK. Though he may have been a good lawyer in the UK, he was not familiar with the laws of Egypt. The person who bought the apartment was not protected, and lost everything when they tried to register the apartment. The courts will always side with the contracts written by the Egyptian lawyer, under Egyptian law.
     
  7. NeilHollingsworth

    NeilHollingsworth New Member

    If you have a guaranteed rental ensure it is in the preliminary contract DO NOT wait until the completion before asking for it. They tend to disappear if you do.
     
  8. Agnieszka Egypt

    Agnieszka Egypt New Member

    Also Be Sure To Have Late Penalty Agreements Written In Your Contract, Most Of The Developments Are Behind Completion And If You Do Not Have This. You Will Have No Protection If It Takes Months Or Even Longer To Compolete.
     
  9. Lsab

    Lsab New Member

    Hi Agnieszka - welcome to the forum. Been reading through your posts this morning and you seem to have a good knowledge of buying in Egypt - look forward to hearing more from you.

    If you need any help finding your way around the forum please give one of the moderators a shout - myself (Linda), Alison (queenie40something) and Lyndsay(552). Meantime, it would be great if you could introduce yourself on this thread: http://www.totallyproperty.com/egypt-property/7504-introductions-36.html. It's not obligitory of course, but you can 'meet' most of the other members there and we get to 'meet' you too :)

    Best wishes
    Linda
     
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