Egypt achieves record primary budget surplus of EGP 629bn despite sharp fall in Suez Canal revenues    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Resumption of production at El Nasr marks strategic step towards localising automotive industry: El-Shimy    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    United Bank achieves EGP 1.51bn net profit in H1 2025, up 26.9% year-on-year    After Putin summit, Trump says peace deal is best way to end Ukraine war    Jordan condemns Israeli PM remarks on 'Greater Israel'    Egypt's Supreme Energy Council reviews power supply plans for 14 industrial projects    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egyptian pound closes high vs. USD on Tuesday – CBE    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    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    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    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.



Developers call for replacing imprisonment with fines in real estate violation cases
Final draft of law scheduled to be submitted to cabinet within two months, says Sabbour
Published in Daily News Egypt on 25 - 02 - 2019

Several senior real estate developers met on Monday evening for about five hours in order to discuss the draft law to establish a federation of real estate developers at the headquarters of the Armed Forces Engineering Authority.
The Deputy Minister of Housing for National Projects, Khalid Abbas, and officials from the ministry of housing, and the chairperson of the Egyptian Federation for Construction and Building Contractors were among the attendees who met in order to discuss the problems of the real estate market.
The developers presented the current problems facing the sector, and the importance of establishing such a federation for developers.
Hussein Sabbour, the chairperson of Al-Ahly for Real Estate Development, told Daily News Egypt that all developers demanded drafting an article which stipulates that developers should not be imprisoned in case of non-compliance or violation, and rather impose a financial penalty in those cases.
Sabbour explained that this article creates a fair balance between developers and customers, by ensuring customers' right to get their money back, and at the same time, will not threaten developers with imprisonment.
He pointed out that the main points which were emphasised during the meeting were calling for the formation of a federation of real estate developers in order to be an entity responsible for regulating the real estate market, and categorising developers according to their financial and technical abilities in order to provide land for each developer according to his/her financial and technical feasibility.
Additionally, Sabbour revealed that the meeting ended without specifying another date for a second one to discuss the draft law, expecting that no other meeting will be held, and that the ministry will review the draft and submit it to the parliament's housing committee.
He also explained that a final draft of the law is scheduled to be submitted to the cabinet within two months.
Sabbour further stressed that this law is important for the market, pointing out that the market witnessed an emergence of a large number of real estate investors during the past period, with some of them having no experience or financial solvency, which roused the government's fears on the ability of these companies to implement these projects. Therefore, establishing a responsible body for the classification of real estate developers will ensure that the customers are protected.
Therefore, he pointed out that the developers demanded a balance between the two parties, and ensuring the protection of the real estate developers' rights as well.
President Abdel Fattah Al-Sisi instructed Prime Minister Mostafa Madbouly to issue all the laws which the real estate sector needs, including the issuing of a law to establish a federation of real estate developers.
Omar Watani, a member of the parliament's housing committee, noted that gathering all the issues of the real estate sector in one entity is a very important step in order to guarantee the market's regulation, and to secure the customers' financial rights.
Watani added that the bill aims to create an insurance fund, which is one of the mechanisms that will help guarantee the money of clients and depositors, explaining that the fund will be backed by membership fees.
He noted that in the case of any project faltering or becoming suspended, the insurance fund will intervene to guarantee the clients' funds and the right of the state.
He elaborated that the value of the fines imposed by the draft law on developers, even in the case of delays in the units' delivery or announcing off-plan projects without having licences, are not high, however, it helps prevent violations and fraud in the sector.
He concluded that the draft law, along with the other bills being discussed in the housing committee, will be integrated and will push the sector to achieve more growth, in addition to assisting in controlling the real estate market more properly.
For his part, Tarek Shoukry, the head of the Real Estate Development Chamber, said that the draft law was submitted by the chamber, noting that the article related to the prohibition of announcing projects', reserving real estate units, or contracting to sell units before obtaining permits was submitted by the chamber's members.
Shoukry added that this prohibition is in favour of the client in order to secure their rights and protect them from fraud.
Moreover, Shoukry explained that obtaining a ministerial decision for projects is important to enable reservations or bookings in projects, which applies for developers and big companies. He added that obtaining building permits for small buildings and activities is important even the units are still not built.
The article related to obtaining licences will not affect the companies' financial liquidity because they can sell their units before building them, but on the condition of obtaining building permits beforehand, Shoukry also noted.
Finally, he pointed out that the article will contribute toward organising the real estate sector, and will prevent random and informal building.


Clic here to read the story from its source.