Ahmed El-Batrawy, Chairman of the Egypt Real Estate Platform, reviewed the idea of applying a unified contract between real estate developers and buyers based on international models such as the FAR/BAR contract in the United States. He explained that this contract is legally binding on both parties, with penalties imposed on violators, and that liability is borne by anyone who uses a non-approved contract.
El-Batrawy added that this model ensures fairness, as developers have the right to withdraw the unit and take legal action against a buyer who delays meeting their obligations. Likewise, developers face severe penalties if they breach construction terms. He pointed out that specialized authorities regulate these relationships to avoid resorting to civil courts.
In response to a question from journalist Ahmed Salem regarding developers who collect funds without executing projects, El-Batrawy denied that this occurs, noting that there is a legislative framework obliging developers to document transactions and open an escrow account amounting to a minimum of 30% of the project value, to be disbursed according to an approved implementation schedule.
For his part, Tarek Shoukry, Chairman of the Real Estate Development Chamber, confirmed that there is no single global unified contract in most countries, stressing the importance of focusing on regulating the core clauses of contracts in line with the specific nature of each project.
Regarding the establishment of a regulatory body for real estate transactions, he explained that efforts are underway to establish a developers’ union to organize the sector, praising the role of the Contractors’ Federation license and calling for developers to be classified according to their capabilities and track records.
Shoukry noted that any violations would be met with penalties ranging from downgrading classifications to license revocation. He also clarified that the chamber, which includes 15,500 members, plans to implement strict measures to regulate the sector, given that even minor disruptions can have a significant impact on this vast industry.
