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Old 26-02-2008, 02:18 PM
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Question Due Dilligence

Quote:
Originally Posted by Zeiad Yehia View Post
Thanks for mentioning this point so I can clarify it:

Firstly, according to law number 230 of 1996, the foreigner purchaser is PROHIBITED from selling their property within a 5 years time period. The word "prohibited" or "restricted" means that any sale that will take place before the 5 years restriction expires would be a "REVOKED" and "INVALID" sale.

You definitely can articulate a preliminary contract, but the question is..... is it in compliance with law? Answer is "NO." and subsequently the sale withing the 5 years will be legally valueless.
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All the best,

Zeiad Yehia
Solicitor
Interesting. I have a reservation fee down on an apartment in Hurghada. The "Due Dilligence" report from the Solicitor states that any owner selling within the first five years must give the developer first option to purchase. This would suggest that it is legal to sell within that period. If what you say is true, then it calls into question the quality and legality of the Due DIlligence!

Thanks for your posts, they're very informative.
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