Marsa Alam

[Cliff277]

Hi to all
I received a phone call from Sue this morning (Friday 25th) and she said that the Due Diligence has been sent to our agents and that we should receive a copy on Monday 28th.
She also said that now the Due Diligence has been sorted that the developer is keen to get started and should be breaking ground in about 2 weeks.
Has anyone else herd from her?
There is also an amended purchase agreement that is being sent to new clients that amends some of the concerns in the first agreement but as I understand it, for investors who have the first agreement it is a choice between having an Egyptian copy of that or the new agreement without translation.
If anyone would like to see a copy contact me with your e-mail address and I will send you a copy.

Regards
Cliff

 

[samui13]

Hi all, I got the due diligence through from my agent today and have forwarded it to zeiad.

Lou

 

[chriscross34]

thanks Cliff and Louise, i rec'd the Due Diligence yesterday afternoon via email. Louise, does the amendments referred to by Cliff reflect those comments made by you, I and others?

 

[kc67]

Guess I'd best be chasing my agent then, as I've still not heard anything from her! At least things seem to be moving now....
Karen

 

[alex63]

Due diligence

Hi all,I received the due diligence. today.How many time can I study it before I have to send back the contract signed to IPI? Thanks.
Alex

 

[alex63]

Hi Cliff
can you tell me something about the new purcchase agreement that you were talking about?
Thanks
Alex

 

[samui13]

Hi the amendments I penned on my contract were all of the amendments we all discussed.

I think its best that we use this. Zeiad's contract reads so much better but I dont think IPI will go for it cause I think they will keen to push on.

Sue said if I forwarded my amendments to her she will review them (and I am assuming put them in the next arabic contract).

Once zeiad confirms due diligence is ok, I will forward to IPI.

Lou

 

[Cliff277]

Hi Cliff
can you tell me something about the new purcchase agreement that you were talking about?
Thanks
Alex

Hi Alex
As you have only just purchased your apartment yours will properly be the new agreement you can easily tell on the front page just below your personnel details the new agreement says :-
Agree
that the developer sells to the buyer the apartment referred to below (also referred to hereinafter as: the hotel
suite which includes all rights and privileges which apply to freehold ownership):
And the old agreement says:-
Agree
that the developer sells to the buyer the right to acquire the apartment referred to below (also referred to hereinafter as: the apartment which right includes all rights and privileges which apply to freehold ownership):
Because you have only made 3 posts on this forum you cannot send or receive any private messages make 2 more then you can send me a private message with your e-mail and I will send a copy of the agreement if you want.

Cliff

 

[alex63]

Hi Cliff
thanks for your answer. With your help I discovered that my purchase agreement is the new one. But what about the Egyptian copy?

Regards
Alex

 

[alex63]

Hi all,
as you have seen in the due diligence,there are two lines that make me wonder:
"In accordance with a more recent application dated 18 March 2008 SERY has applied for an alteration to the original plans, approval of which is yet to be obtained."(pag.8)
Do you know anything about this alteration to the original plans?
Thanks
Alex

 

[DC]

Hi Alex63,
Please ask your lawyer, and the developer about this.
thank you

 

[Jacky Hep]

Due Diligence

Hello Alex63 and all

I am a new member having just purchased a two bed apartment at MABR and just received contract and due diligence. It is the latter I would pose the following questions to other members as it does not seem as secure as I had hoped it would be and much money is at stake. My concerns are

1. There is little web-based data on UK lawyer Seddon who is heavily committed in the Czech area with little evidence of expertise in Egypt.

2. His due diligence has much stated unconfirmed data; for example background financial detail on the IPI management which appears to have limited funds and therefore information of possible debts such as mortgages would be useful but Seddon relies on word of mouth.

3. Due diligence suggests that IPI, apart from Zafarana (which seems to be well behind original development date and according to members on this site for Zafarana has suffered plan changes),has little else to recommend its expertise in developing. Is Zafarana developing well or does anyone know buyers who are worried?

4. Due diligence suggests IPI are purchasing 100% shares in SERA developing company - but the owner has died and his children legally inherit the business so IPI cannot purchase till well after we have paid IPI our up front dues; if that purchase falls through or is contested at price or sale by 'children' and that delays severely the project, what happens to the project and our monies?


5. The comment you make Alex about plan changes also states that the Egyptian Assn of Touristic Development makes coments like might "give another look for the subject of specification decided for the benefit of your company"; SERA must pay interest on "delayed part of first year" (at 5/6/08),must "fulfill the obligation of start build the project" - dated 16th July 2008 - not comments you wish to read that were made only a week ago.

6. %ages and other financial data are blacked out of copied pages purportedly evidencing due diligence comments.

7. The Escrow agent is actually an IPI branch with no safet net from ABM AMBRO other than holding its account - we are giving the developer our monies, not an independent escrow agent - therefore basically an interest free loan to buy SERA thence, hopefully, to develop MABR.

If the SERA company has no confirmed owner but inhertining children who are hoped to sell to IPI as 100% shares
The developer has no freehold title to the development until it is built according to Egyptian law
If IPI depend on those children for sale to it and do not own it yet
Therefore IPI has no guarantee of ownership or development technically
Yet IPI is collecting monies into its escrow account managed by its own people under those terms above, if accurate

are there sufficient safeguards for us as buyers, if the above is accurate?

 

[samui13]

Hi there, I had exactly the same concerns with the due diligence and was a bit disappointed with its contents and am waiting to hear back from my lawyer. I am new to all this tho so am not sure what to expect.

Thanks.

Lou

 

[kc67]

Hi, the due diligence leaves a lot to be desired - I await instructions from my lawyer on whether to proceed or pull out. One thing for sure, my money will stay in my bank account until myself and my lawyer are 100% happy.
Karen.

 

[queenie40something]

Hi Jacky and welcome to the forum.

Could I point you in the directions of the Acceptable Use policy http://www.totallyproperty.com/faq.php?faq=terms#faq_termstext

I have had to edit your last post due to possible legal issues.

If you need any advise on navigating the forum please feel free to ask myself or Linda ( Lsab )

Regards

Alison

 

[chriscross34]

Wow, thank you Jacky. if I am honest, i am concerned, both on the purchasing agreement which is full of holes and the due dilligence. On the former, a revised agreement has been sent to one potential purchaser but why wasn't it sent to all similiar purchasers with maybe a deadline to register comments

I am still confused on the latter, and how legally valid are both documents. I am hearing conflicting views as to whether the contract needs to be in arabic and english.

In addition, despite requesting assistance from Zeiad on 13th July and re-emailing, have received no response!!!!

 

[samui13]

Independent solicitor

We have recently received an email from IPI "telling us off" for checking up on documents for the due diligence.

There are a group of us using Zeiad and we have all received the same email.

We were wondering if anyone else (not using zeiad) but using an independent solicitors has got the same email.

Zeiad has requested certain documents from the developer (as yet they have not provided these documents).

I have written back to the developer to voice my opinion that surely we are entitled to check up certain information within the due diligence pack (otherwise they could just make it up if noone is allowed to check!!)

Would be interesting to see if anyone else got this, or if the developer is picking on the zeiad group since he is doing his homework. I am confused as to why this would upset IPI and the other parties since surely they want us all to proceed with piece of mind and confidence.

cheers

lou

 

[NeilHollingsworth]

Hi, the due diligence leaves a lot to be desired - I await instructions from my lawyer on whether to proceed or pull out. One thing for sure, my money will stay in my bank account until myself and my lawyer are 100% happy.
Karen.

Kc67, don't forget what i have mentioned to you and definitely keep your money in the bank until happy. On the contract it needs to be in English and Arabic, when clients first purchased on DP they only had English contracts and are now having to pay to get them translated into Arabic, so make sure it is done for you initially.

It is ludicrous that some of you have been "told off" for checking out the DD, this should raise alarm bells

 

[queenie40something]

Hmmm my thoughts as well Neil. The contract as I stated earlier needs to be in both Arabic with English translation. Agree with Neil - dont part with any money.

 

[samui13]

Thanks Neil/Alison

This was my first thought - I feel they wouldnt care if they had nothing to hide. Turns out the escrow account is not "actually an escrow account" since the bank they have gone with do not hold this facility (and the bank will give no guarantee that the money is safe). Three people have to sign to release funds from the escrow account (one being the developer) and two others - who knows who they are (probably the developers wives!!!)

I questioned this with the developer and they said the three people were fully responsible for the funds and did not have limited liability, they had full liability - but look how easy it is to spend shed loads of money now adays and they just say woops sorry suppose I better go bankrupt now (i see it all the time). Not to say I think this will happen because I do not but in this day and age you have to always be prepared for the worst!

Now has anyone found me a resale instead??? god that would be so much easier (neil DP1 looks lovely but is not close enough to the beach for us unfortunately) - got anything else?