Ahmed El Batrawy, Head of the Official Egyptian Real Estate Platform, stressed the importance of adopting a unified real estate contract to regulate the relationship between developers and buyers, drawing inspiration from the U.S. experience with the FAR/BAR model, which ensures a balanced framework that safeguards the rights of all parties.
During his remarks on the TV program Kalema Akhera, El Batrawy noted that the unified contract in the United States is legally binding on developers and marketers, and that any violation of its provisions exposes the offender to legal accountability, particularly when unapproved contracts are used.
He emphasized the necessity of achieving balance between rights and obligations in real estate contracts. While developers have the right to reclaim units and take legal action against buyers in cases of payment default, they are, at the same time, subject to strict penalties if they fail to comply with agreed specifications, delivery timelines, or unit sizes.
El Batrawy also highlighted the importance of oversight mechanisms such as escrow account systems, whereby developers are required to deposit 30% of the project’s value into an account supervised by the state. These funds are released only with the approval of the supervising authorities and in line with actual construction progress milestones.
Regarding dispute resolution, he explained that the U.S. system relies on administrative and regulatory bodies that expedite the settlement of real estate disputes away from lengthy court proceedings, thereby protecting investments and enhancing stability in the sector.
