Rafah Crossing 'never been closed for one day' from Egypt: PM    Egypt will keep pushing for Gaza peace, aid: PM    Remittances from Egyptians abroad surge 70% YoY in July–May: CBE    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    Egypt's current account gap narrows, but overall BoP records deficit    Al-Sisi urges accelerated oil, gas discoveries, lower import bill    SCZONE signs $52.6m textile industry deals during China investment tour    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi calls for boosting oil & gas investment to ease import burden    EGX to close Thursday for July 23 Revolution holiday    Egypt, Senegal sign pharma MoU to unify regulatory standards    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Dispute over period of committing real estate developers to fix unit faults
New law article to protect customer rights stirs debate among developers
Published in Daily News Egypt on 10 - 01 - 2018

Parliament's Economic Affairs Committee is currently discussing the consumer protection draft law submitted by the government to the state council and then submitted to the parliament for discussion.
The Committee prohibited, in article no. 5 of the law, the announcement of booking or reserving real estate units, signing contracts to sell these units as well as selling land prepared for construction or division only after obtaining a building permit in accordance with the provisions of Building Law No. 119/ 2009.
The new law also mentioned in clauses under articles no. 26 and 27 that the developer or the company has to fix the default within three years of delivery.
Nevertheless, real estate developers affirmed that they did not receive any notification or invitation to participate in discussing the draft law.
Chairperson of Real Estate Development Chamber, affiliated to the Federation of Egyptian Industries (FEI),Tarek Shoukry, said that the article related to the prohibition of announcing booking or reserving real estate units or contract to sell units before obtaining the building permits was a draft submitted by the chamber.
Shoukry added that that prohibition is in favour of the client to guarantee their rights and protect them against fraud.
Shoukry explained that obtaining ministerial decision for project is important to launch reservations or booing in projects, this applies for developers and big companies. He added that obtaining building permits for small buildings and activities is important even the units are not built.
He noted that article will not affect the financial liquidity of the companies because they can buy their units before building but on condition of obtaining building permits.
He pointed out that the article will participate in organising the real estate sector and prevent random and informal building.
As for finishing, Shoukry disagreed with the article no. 26 related to fixing the faults with unit finishing work within three years of delivery to customer, pointing out that once the client received their unit, there should be no responsibility on the developer or the companies.
"This article will open great disputes in the market between the developer and the client, opening the door for sharing blame for defects in finishing or defects in use," Shoukry noted. "Furthermore, it affects companies' investment flow."
From his part, Ashraf Dowidar, CEO of ARDIC Real Estate Development agreed with Shoukry that the article that prohibs selling units prior to obtaining permits prevents fraud in the market but complicates the legal situation of companies.
"In ARDIC, we do not have any concerns on the article because the ministerial decree is very important and the main condition to launch the project and obtaining other permits come after that," said Dowidar. "I think a period of three years to compensate the client or fix the faults is a very long period. However, an article in construction contracts states that the final delivery by the contractor is within a year, through which the developer is responsible to fix any defaults in the building but not inside units. Thus, a year is a suitable period rather than three years."
He added that this will be added on the cost of the unit borne by the client.
Beta Egypt for Urban Development chairperson Alaa Fekri agreed with Dowidar that fixing faults within three years will lead to increasing unit cost, which will again be borne by the client.
Fekri said that three years is a very long period and has to be reduced to be in the range of six months to a year.


Clic here to read the story from its source.