Can a developer increase the unit size and ask for more money??

[queenie40something]

Hi all

Looking for some input please.

Once you have found a property and signed the contract which states the size of the property upon handover can the developer demand more money - nearly 11k -because they have increased the size from 99m2 to 111.5????

 

[ERG Experts]

Hi all

Looking for some input please.

Once you have found a property and signed the contract which states the size of the property upon handover can the developer demand more money - nearly 11k -because they have increased the size from 99m2 to 111.5????

Hi Queenie,

I would say no. If one has paid what was agreed then it's the developer's liability if he chose to increase the apartment size. What if you didn't have the extra money to pay, which at 11k I'm sure most wouldn't. I think if you have upheld your side of the contract then they can't ask you for more. It may be a question best put to a lawyer though to be sure.

ERG

 

[queenie40something]

thanks erg - z is in alex and on his way back to meet the owner in nabq

11k is an awful lot of money to expect any one to cough up

the contract states having a surface area - more or less - 99m2 square meters

the developer must have known right at the start when the footings were dug that the apartments would be bigger - another way of trying to get extra money from investors

 

[Alan Cockayne]

Thanks erg - z is in alex and on his way back to meet the owner in nabq

11k is an awful lot of money to expect any one to cough up.

The contract states having a surface area - more or less - 99m2 square meters
and the developer must have known right at the start when the footings were dug that the apartments would be bigger - another way of trying to get extra money from investors

And that is exactly why investors should hire their own independent lawyers to authenticate and validate the contents of the contract prior to both parties signing.

I do find this is typical of the loopholes local lawyers (hired or proposed by developers to do your work) fail to find. In Egypt, for their low fees, you only get what you pay for.

Alan - Coralife-Style Consultants.

 

[queenie40something]

hi alan - it was an independant lawyer and not one recommended by the developer

 

[Alan Cockayne]

misrepresentation

hi alan - it was an independant lawyer and not one recommended by the developer

What nationality was he?

If he is from the same country as the buyer and he know the Egyptian laws in doing this type of work, he should be covered. Especially if he added those clauses you need to allow for compensation in the event of misleading material or misrepresentation, the contract should favour the buyer.

If he is an independent Egyptian lawyer and didn't spot the ambiguity of the Unit room sizes from the floor-plans and the clauses were not in the contract, then I'm afraid the developer's details will be the ones he will have to suffer..... Or go down another legal route of expensive litigation.

Now readers, you see how important it is not to cut corners with such sums of money involved.

Alan.

 

[queenie40something]

thanks alan - he employed an Egyptian lawyer

 

[Alan Cockayne]

The duties of a real estate agent.

thanks alan - he employed an Egyptian lawyer

Hmmm...
Estate agents always seem to get the stick for problems. And so we should if we fail to justify the correct documentation to customers. A main agent's position is clear, sell the right product according to the what is on the developer's portfolio and to correct its sub-agents if they get it wrong, before a contract is signed and money is transfered.

If a developer gives out the wrong information to the agents (or directly to a client from its sales-room) the developer is to blame for selling the customer short and must not try for more money for its own shortfall (as it looks like in this scenario.)

However, without the strength of ones own legal representative underwriting the client's version of a contract, having a situation go in ones favour is doubtful. You are investing in Egypt please remember, it's difficult and expensive to keep visiting in order to prove ones case or to keep correcting it.

Alan.

 

[ERG Experts]

thanks erg - z is in alex and on his way back to meet the owner in nabq

11k is an awful lot of money to expect any one to cough up

the contract states having a surface area - more or less - 99m2 square meters

the developer must have known right at the start when the footings were dug that the apartments would be bigger - another way of trying to get extra money from investors

Hi Queenie,

Although it says in English "more or less" you will have to get the arabic text checked out, because it doesn't really matter what is written in the contract in English as it's the Arabic that will always prevail in any situation.

Hope it gets sorted soon for you (or him as the case may be)

 

[petev]

Yes They Can do that ,even they can give smaller size and not give a compeensation

Hi all

Looking for some input please.

Once you have found a property and signed the contract which states the size of the property upon handover can the developer demand more money - nearly 11k -because they have increased the size from 99m2 to 111.5????

I think they can , I have a friend she bought from a Trump tower Panama and got more than 10 m2 less and no cover ,you have to read what they say in your contract , dont trust your brokers when they sell and promise everything.
THEY USE THAT WORD "APPROXIMATE " area and they do what they want,if its not named in your contract ,

 

[cdsj]

Hi
Has this person had thier contract signed by themselves and the developer on every page as is common in egypt,and has he had it stamped by the sinai courts yet.Thinking logically here if the developer has agreed a price which is then written into the contract along with the installment plan(if any) then he has surely agreed the final price for the said unit.As a previous poster mentioned the developer has had ample time to correct the difference in meterage or at least approach the owners in a more appropriate timescale.

 

[queenie40something]

thanx for your responses guys

will update once i have heard developments as im sure this buyer wont be the 1st or last

 

[cdsj]

Yes a very valid point as when one developer gets away with it they all seem to follow.I have noticed this trend over the last couple of years.Hope it gets sorted for this person as no one deserves that hassle.

 

[danny]

Yes a very valid point as when one developer gets away with it they all seem to follow.I have noticed this trend over the last couple of years.Hope it gets sorted for this person as no one deserves that hassle.

I agree, I think they all get together on Fridays to compare the latest scams to extort more money out of clients.

Don't forget these people have been robbing the graves of their kings and Queens for centuries, so why should they care about a fleecing a few foriegners.

 

[queenie40something]

i personally dont think he has the funds to complete and it is away of getting more money from the investor

my hubby has advised to get someone independant to re measure too

 

[simpywimpy]

I agree, I think they all get together on Fridays to compare the latest scams to extort more money out of clients.

Don't forget these people have been robbing the graves of their kings and Queens for centuries, so why should they care about a fleecing a few foriegners.

I think you'll find its the Brits that have robbed the artifacts and mainly Brits that are involved in ripping off their own.....

 

[simpywimpy]

i personally dont think he has the funds to complete and it is away of getting more money from the investor

my hubby has advised to get someone independant to re measure too

We have had stories of being charged £300 for someone to go and measure the apartment when it should only be 50-100.

This does seem to be the latest immoral way of getting more cash out of people...

 

[sportbilly008]

Hi
Has this person had thier contract signed by themselves and the developer on every page as is common in egypt,and has he had it stamped by the sinai courts yet.Thinking logically here if the developer has agreed a price which is then written into the contract along with the installment plan(if any) then he has surely agreed the final price for the said unit.As a previous poster mentioned the developer has had ample time to correct the difference in meterage or at least approach the owners in a more appropriate timescale.

Although I havent been asked for extra money..............yet, Im over on the 27th of this month to HOPEFULLY do handover of my 99m 2 bed on Sharm Bride.

I have had my contract signed by the developers on every page, legalized at the embasy in London, sent to Cairo and they are now in the hands of Zaied Yehia who I paid for this service.

Sounds like they are praying on a certain clause in the contract that states that the sale size is just a guide size.

The thing that frustrates my partner and I is that we didnt buy early off plan. I stood in my apartment(The bare shell) and all the stuctures were up. This was 2 years ago, so the apartment is the same size now as it was back then!!!! It has grown in size!

Doesnt sound like anyone has the deffinative answer over whether we have to pay or not.....?