Marsa Alam

[samui13]

Hi Alx, welcome.

If you have contacted an agent they would advise you on how the situation works. You get the plans on the 15th and then pick a handful of apartments that you like best (obviously everyone is not going to get first choice)!!!!

On the official launch day they call everyone at set times and you pick your allocation (based on what is left after the people before you chose theirs).

Its simple, you get your choice in order of how far down the list you are (so you will know the day of the phonecall which exact apartment you want) and can then say Yes or No so everyone that wants their deposit back can have it back.

If you did your research into the earlier development Zafarana you would see that this worked in exactly the same way (and yes, it did work!)

Lou

 

[kc67]

Hi Alx, welcome.

If you have contacted an agent they would advise you on how the situation works. You get the plans on the 15th and then pick a handful of apartments that you like best (obviously everyone is not going to get first choice)!!!!

On the official launch day they call everyone at set times and you pick your allocation (based on what is left after the people before you chose theirs).

Its simple, you get your choice in order of how far down the list you are (so you will know the day of the phonecall which exact apartment you want) and can then say Yes or No so everyone that wants their deposit back can have it back.

If you did your research into the earlier development Zafarana you would see that this worked in exactly the same way (and yes, it did work!)

Lou

Hi Lou,
You say that the Zafarana did work - did you buy an apartment there? If so, I presume that before they asked you for all the money up front that they made sure that the due diligence had been completed and they had all the proper licences and approvals in place. I'm a bit worried that we are so close to having to sign contracts on Marsa, however just yesterday when I asked my agent about due diligence I was told that it was not complete yet.

 

[alx]

Hi,

I read the guides. They're quite logical. Nevertheless there is a remark - they are not binding. What else do you have except guides and telephone calls? Only reservation form.

But it is not a reservation form because you do not reserve anything. You reserve the right to bid in a lottery. The reservation form is not binding as well. From this form it is not clear what will you get, how, at what date, what will be the price. But it is clear from the application that you have to make a decision under time pressure (within 15 minutes window?),then you undertake to pay within 14 days (since what date? what value? - they will tell in the way they like to). If you do not pay - you loose your deposit.

I am not a lawyer, but as i am working with contracts, i see that it is just a swindle. It is not defined who is vendor - no Essential Elements, no address - simply Vendor. Just imagine - when you will say "yes", will get a contract like that and sign it - you are in big trouble. If you dislike it, want to chage it - you have 14 days (since when?). If the money is not transferred - deposit is lost. As refund procedure is not clear as well (they will send it later) - you have no chance to get the money back.

 

[alx]

Hi Lou,
You say that the Zafarana did work - did you buy an apartment there? If so, I presume that before they asked you for all the money up front that they made sure that the due diligence had been completed and they had all the proper licences and approvals in place. I'm a bit worried that we are so close to having to sign contracts on Marsa, however just yesterday when I asked my agent about due diligence I was told that it was not complete yet.

My opinion - even in case due diligence is OK - it is not a big deal. The land in this area costs nothing - governement sells it for 2$/sq.m. I even can assume that Zafa and Marsa will be completed. However i have no doubts what will happen to private investors - they will suffer a lot. It is just a question of how much they will loose.

P.S. just got this by mail: (do you feel how easy launch date is shifted, now there is complete vagueness - where is the true? The true is that your commitment to pay in 14 days is still in force) :

The official launch will be on Wednesday 26th March 2008, just after the Easter weekend.
Please also note, due to a hold up with the notarising of documentation in Egypt, we do not expect to have the due diligence ready by the launch date. Developer will now be asking reservation clients to choose apartments, however, they will not be required to pay further monies nor sign contracts until the due diligence has been supplied by the developer. This is now expected around the mid April 2008. This is obviously good news for some clients as it allows them an extra couple of weeks to organize funds.

 

[kc67]

Hi Alx, I don't think that I will suffer or lose any money - if I do not like the apartments which are left when they phone me, then I will ask for a refund of my reservation fee. I had been told by my agent that we would get our info pack, plans etc., through by 15th and then would be contacted about 7 days after that (Sat 22nd - as this falls over the easter weekend, I presume that they will leave it until business opens again on Tuesday 25th). As they have over 200 people to telephone, I also presume it may take them a couple of days (until 26th) then they would launch. That is entirely expected in my opinion and is not something I intend to get stressed about. The only thing I don't really like is handing over all my money at once - I would be happier handing it over in stages when I could see that the developer was doing his bit. Lets also hope that the escrow agent is trustworthy (by the way who gets all the interest from the money they are holding?) Other than that I'm only interested in whether they own the land and have all the permits, etc., to build on it, that they complete on time and transfer the ownership of my apartment to me and that I am able to get out there and enjoy myself after that!

 

[NeilHollingsworth]

My opinion - even in case due diligence is OK - it is not a big deal. The land in this area costs nothing - governement sells it for 2$/sq.m. I even can assume that Zafa and Marsa will be completed. However i have no doubts what will happen to private investors - they will suffer a lot. It is just a question of how much they will loose.

P.S. just got this by mail: (do you feel how easy launch date is shifted, now there is complete vagueness - where is the true? The true is that your commitment to pay in 14 days is still in force) :

The official launch will be on Wednesday 26th March 2008, just after the Easter weekend.
Please also note, due to a hold up with the notarising of documentation in Egypt, we do not expect to have the due diligence ready by the launch date. Developer will now be asking reservation clients to choose apartments, however, they will not be required to pay further monies nor sign contracts until the due diligence has been supplied by the developer. This is now expected around the mid April 2008. This is obviously good news for some clients as it allows them an extra couple of weeks to organize funds.

Surely the due diligence should be in place months before a product launch? We don't even take properties on to market unless the due diligence is in place as no doubt do other agents.

I also believe there is a 10% rental guarantee? Can i just give a bit of advice to anyone buying one of these, make sure the guaranteed rental is written in your preliminary contract.

We have heard of similar guarantees in Bulgaria and once the developments were sold and completed the rental guarantees disappeared and no one had it in their contracts.

So please do not sign anything unless it is in black & white and do not fall for any nonsense about it will be added later.

Just a word of caution, not trying to put anyone off, i have just seen people stung by this and don't want to see anymore.

 

[alx]

Hi kc67,

Do not worry - they will not press for money at once. You may ask for payment by stage or developer funded morgages. They are flexible and will try to get from you as much cash as they can without any pressure.

Just be prepared to complete vagueness. You will ask for a refund? Do you already know how? You will call and ask them? You will request it by email. Do you have an idea what kinf of cancellation form it will be? What will be the conditions, fees and extra payments?

I have no doubts - cancellation form and contract itself will be unfair and invalid like reservation form is.

 

[kc67]

Hi Alx - As far as I am aware there is no option of staged payments or developer funded mortgage - they want all the money at once! I wonder if anyone who has already bought from this developer on the Zafarana Resort has experienced any problems (or tried to pull out and had trouble getting their reservation fee back) - maybe we should start a new thread and get their comments?

Hello Neil, Thanks for your good advice - I intend to have my contract gone over with a fine toothcombe before I sign anything. Anything else we should specifically look out for?

 

[samui13]

The escrow agent gets all the interest on the monies (this is the norm apparently)

There will be payment plans, but as I understand it, you will have to pay 10% more for this allocation of property(and only certain blocks are allocated for payment plans)

On the phone call day, if you dont like what you are offered, you tell them, they email you a form and then you give them your bank details of where you want the cash refunded and they refund you.

In the information packs there will be full details of all properties, together with their prices. You will then know which apartments are left before you go ahead.

If you look on eyeonworldwide at the Zafarana project there are a lot of happy customers on there who have followed the whole build and are happy with its progress.

I think at the moment all we are reserving is our name on a list for a certain type of property - never once did I expect Marsa Beach Resort to guarantee me a specific number of apartment before the plans were even issued.

If you are not happy Alx wait until the plans are launched so you can see what is available for sale yourself and then you can decide if you think the information is sound. We just wanted our names on the list to get an earlier allocation.

I have also been advised that the rental agreement is an annex to the Contact and will be referred to in the main contract.

Hope this answers some questions.

Lou

 

[NeilHollingsworth]

Hi can i ask has Zafarana been completed, i don't know it that is why i ask? If so then that should give some degree of security. Also did they have a rental guarantee and if it is completed and running has the rental guarantee been delivered?

 

[kc67]

Hi Neil,
I've just been on eyeonworldwide as Lou suggested and there is some interesting info on there - although it appears that Zafarana is not complete yet. Unfortunately as I run my business from a home office and have been side-tracked (once again) by this forum - it's so addictive!!! I'd better go and do some work or I'll be working til midnight to catch up.

 

[NeilHollingsworth]

Hi Neil,
I've just been on eyeonworldwide as Lou suggested and there is some interesting info on there - although it appears that Zafarana is not complete yet. Unfortunately as I run my business from a home office and have been side-tracked (once again) by this forum - it's so addictive!!! I'd better go and do some work or I'll be working til midnight to catch up.

I will have a look, thanks kc67.

 

[samui13]

Zafarana is due to complete in April in stages (end of April being the first lot) right up to December.

If you go on to IPI BVs website they constantly post construction photos of the resort every month.

I feel secure in that this is an actual development which is (nearly) finished. The customers have been over and are pleased with what they see so far - Zafarana is up between Cairo and Hurgharda and is completely sold out.

To be honest, I am not buying for the rental guarantee (although its a bonus if we get it).

I really want the property for me later on (enjoying a few weeks a year now) so if the rental works out fine and if it doesnt then it wont be the end of the world, I will keep it all to myself and will not let them have to the keys to rent it if they dont pay my rental fees.

I too was dubious when looking into this but then I would be with any purchase in Egypt since its all so new - unless I bite the bullet now and buy something elsewhere I will end up living in crappy rainy England all my life!

Life is a gamble you have to take some risks!

Lou

 

[alx]

Hi,

I checked Zafa contract and it looks OK. I might be wrong, but i feel cheating. Time pressure, tangled procedure.

The key is the reservation form. What is the reason to force me paying increased price, or forfeit my deposit? There is no information about terms and conditions at this stage. It is a dark horse. The buyer should be free to accept or reject the offer. It is unfair.

What is "wish to proceed" or "not wish to proceed"? I would accept 14 days since i sign the contract. But it is not possible to decide if you wish to procede before you get the contract. No subject for decision.

Let us imagine the situation - i whish to proceed, i get the contract, but do not sign it. Is then deposit refundable?

They state "The project will be officially launched no later than 22 March 2008." Today new statement 26th March 2008. What is that? Is it a lie? Just a slight negligence? What kind of guarantees like cash refund shall be expected then?

I will skip lottery phase. let us see what will follow.

 

[alx]

Hi guys,

What do you think about Escrow Account?
"Beneficiary : Stichting Derdengelden IPI"

Do you know what is Stichting? If not - just check Wikipedia. It means NPO (Non-profit organization). Are you sure it is the right party for such operations? Is it a a real charitable organization? Does it function as a corporate tax-avoidance?

Non-profit organization - Wikipedia, the free encyclopedia

 

[kc67]

Hi alx,
Stitching Derdengelden googled means solicitors client/trust account. I asked my agent whether the escrow agent was IPI's own solicitors and she advised me that it was a totally different company - then sent through a copy of a registration from the Trade of Commerce for a company called Stitching Derdengelden IPI.
We are all supposed to get the plans and other documents emailed to us on Monday so I'm waiting for those before deciding whether or not to progress.

 

[alx]

Hi ks67,

No doubt it is an autonomous legal entity. However to register a company is just a piece of cake. Once i did it myself.

I am speaking about organizational and legal form of the company - NPO. It is not a commercial one and treated by law in a specific way...

 

[realestatemart]

Zafarana is due to complete in April in stages (end of April being the first lot) right up to December.

If you go on to IPI BVs website they constantly post construction photos of the resort every month.

I feel secure in that this is an actual development which is (nearly) finished. The customers have been over and are pleased with what they see so far - Zafarana is up between Cairo and Hurgharda and is completely sold out.

To be honest, I am not buying for the rental guarantee (although its a bonus if we get it).

I really want the property for me later on (enjoying a few weeks a year now) so if the rental works out fine and if it doesnt then it wont be the end of the world, I will keep it all to myself and will not let them have to the keys to rent it if they dont pay my rental fees.

I too was dubious when looking into this but then I would be with any purchase in Egypt since its all so new - unless I bite the bullet now and buy something elsewhere I will end up living in crappy rainy England all my life!

Life is a gamble you have to take some risks!

Lou

sorry to ask but who is zafa ??/

 

[lyndsay552]

Zafa is short for Zafarana, a development up near the top of the red sea, same developers and seems to be same design as in marsa alam.

 

[realestatemart]

Zafa is short for Zafarana, a development up near the top of the red sea, same developers and seems to be same design as in marsa alam.

So My own opinion Zafa is diificult location. so far from airport nearest airport two and half hour driving, no city or services around nearest is Rest house supermarket and cafe So i wonder why buy there even Egyptian prefere to buy in Ain Sokhna as its 1 hour driving from cairo