Ahmed El Batrawy, Chairman of the Official Egyptian Real Estate Platform, addressed the topic of the unified contract concept between real estate developers and buyers—a practice already applied in some countries.
He cited the United States as an example, where a unified contract (FAR/BAR) is binding for both parties in a real estate transaction. During his appearance on the program “Kalima Akhira” aired on ON E channel, El Batrawy emphasized that any breach of this contract exposes the violating party to penalties, noting that responsibility falls on anyone using a contract not approved by the state.
El Batrawy pointed out that the contract ensures fairness for both parties. Just as a developer can reclaim a unit from a client who delays fulfilling their obligations, the developer should also face penalties if they fail to complete construction or meet the agreed-upon conditions and plans. He highlighted the role of a specialized authority overseeing relationships in the real estate sector, so parties rarely need to resort to civil courts to resolve disputes.
In response to a question about developers who receive buyers’ funds but fail to meet their commitments, El Batrawy denied that such scenarios currently exist, thanks to a legislative framework that mandates state-approved real estate transactions, in addition to obtaining the necessary licenses and central records.
He also noted that developers are required to open escrow accounts for projects, covering no less than 30% of the project value, with funds released according to a scheduled timeline under regulatory supervision.
For his part, Engineer Tarek Shoukry, Chairman of the Real Estate Development Chamber, commented on El Batrawy’s statements, noting that the unified contract concept is not common globally, as it is not implemented in 90% of countries according to his knowledge.
Shoukry stressed that what matters most is agreeing on the main terms of the contract to ensure a balance of rights between the parties. However, he noted the difficulty of applying a “standardized contract model” uniformly due to differences between projects and regions.
Shoukry also discussed the importance of having an organized authority overseeing real estate operations, suggesting the establishment of a union for real estate developers to regulate the sector. He mentioned that this authority could classify developers based on their technical and financial capabilities as well as their track record, imposing penalties on violators that could include lowering their classification score or revoking licenses.
Shoukry explained that the chamber, which includes 15,500 members, aims to implement mechanisms to regulate the market, noting that a small percentage of violators can cause significant problems and disruptions in the sector. He added that having a well-organized system through a unified authority or union could significantly improve performance and address any shortcomings.
