There is an important thread on here about breach on contract which is VERY interesting to read.

The reason is that everyone buying property in Egypt must be made aware that the rules of Egypt apply, and that as a non-Egyptian you will find it harder to enforce ANY contract terms.

I have been "done" by a high ranking public figure and I cannot find anyone to support any action against this person, hence my very practical advice, given very limited information via the forum about this other issue, also involving a prominent figure in Egypt.

You are NOT really buying a property with a contract, you are buying from someone that you trust, or not. If that trust is betrayed then you have to rely on other meaures, which initially should include the agent, then the owner / developer/ then the courts if you can present a case and think you have any chance of making it worthwhile.

So far Egypt has not had any really bad ssues like the ones in Spain.

It would be good to have an early test case I think to see if Egypt system really will supor non-gyptian buyers.

All makes a good case for meeting the owner / developer face to face, NOT only an agent.


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"You are NOT really buying a property with a contract, you are buying from someone that you trust, or not"

In that case Nigel, nobody should really be buying property in Egypt (or anywhere else for that matter) without a full legal contract that your solicitor confirms is enforceable in UK law. No buyer should be completely trusting of their realtor/developer/agent.
Of course even if you have the contract and have met the "main men", there are plenty of cases in Florida that prove that even when the buyer has met the agent, the developer and even the company owner you can lose your money.
The last recourse of many of those has been the court but if the money was paid to a limited company (whether in the UK or elsewhere) and that has ceased to exist there is nobody to get your money back from.

Mark .Y.

with buying in another country there is aways a risk but the benifits are worth while, other than that your money MIGHT be safe in English banks with smaller interest, if you don't take that risk you will never know. My brother was interested when we bought but did not want to take the risk (watch what happened to me first)but now he wishes he had.

This is a very accurate and incisive comment from Mark; you can read all the due diligence reports in the world but they won't tell you who is TRUSTWORTHY or who is not. You can follow the experiences of others but it is often your own GUT FEELINGS that guide you. ALWAYS try to deal with the Developer at the earliest opportunity. Agents often do a great job in helping you to find the best projects more quickly but at the earliest opportunity get to meet the people who are physically going to BUILD you property and be guided by your INSTINCTS.

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PROPERTY SHOP INC. International Property Brokers
EGYPT REAL - Your One Stop Shop for Hurghada Property

Mark
The following has already been stated by me on this forum, but to put in context.

If ever anyone feels the need for a legal written contract the level of trust has already been decided in that neither party is happy to continue unless there is additional legal enforcement of the terms and conditions.

The big difference is often seen in the words themselves and the effort that both parties make to ensure a fair contract. In my experience in Hurghada with a large developer and like wise with the recent case on this forum there are people in the market who ae not willing to make fair contracts, or to change them, and if they do seem fair do not adhere to them.

In most cases it will not need a laywer to determine an unfair contract and when a potential buyer chooses to enter into an unfair contract then you have to wounder why it happened, with or without advice.

The legal system in Egypt, in my opinion, leaves non-Egyptians at a disadvantge to those who buy propery in the UK. Therefore the risk reward ratio is very different - all buyers need to be aware of this and must not let themselves be led by the potential rewards from investment in Egypt without considering the risks.


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I think there has to be trust with the developer or you simply walk away,I certainly wouldn't buy anything from anybody I didn't trust.
I'm sure what we will find in Egypt once some developments are completed and handed over that's when the problems if any will begin.

Whilst your last paragraph may or may not be correct Nigel, do I understand from your first that you are suggesting people who buy property abroad (or in the UK) should be happy to do so without a contract ?

Regards,
Mark .Y.

Nobody should ever think of buying anything without a contract,I think it's bad enough a lot of buyers are buying blind or without having ever visited the country they are investing in.

Many of dave99's posts would cause concern to me as an investor. He appears to favour buying only on TRUST and not with the protection of a CONTRACT or the advantage of a DUE DILIGENCE report. Of course the old caveat of BUYER BEWARE should always take precedence but the more information which is available, combined with SOUND INDEPENDENT LEGAL ADVICE will always be my preferred route.

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PROPERTY SHOP INC. International Property Brokers
EGYPT REAL - Your One Stop Shop for Hurghada Property

Hi,

I think trust is definately an important factor,however as Peter states other factors do apply,if you treat this as a house purchase in the uk you cannot go wrong.