Ahmed El Batrawy, Head of the Egypt Real Estate Platform, stressed the necessity of adopting a unified real estate contract model to regulate the relationship between developers and buyers, highlighting the importance of benefiting from the American FAR/BAR model, which ensures balanced protection for all parties.
During his remarks on the program Kalema Akhera with journalist Ahmed Salem, El Batrawy explained that the unified contract in the United States is legally binding on both parties, and any breach of its provisions exposes the violating party to legal accountability and full responsibility.
He emphasized that contractual agreements must achieve fairness, whereby the developer has the right to repossess the unit and take legal action against the buyer in the event of payment default. On the other hand, the developer is subject to penalties if they fail to comply with agreed specifications, timelines, or unit sizes.
He added that ensuring developers’ seriousness is achieved through the Escrow Accounts system, which obliges developers to deposit 30% of the project’s total value under state supervision. Funds are then disbursed according to construction milestones and with the approval of regulatory authorities.
El Batrawy also noted that dispute resolution in the United States is handled swiftly through administrative bodies operating under state supervision, eliminating the need for lengthy civil court proceedings, enhancing market stability, and protecting investments from any manipulation.
