Cash price for apartment - advice

[elliemcg]

Hello everyone,
I am a new member to this site, found this forum while doing some research. I have recently returned from holidaying in Sharm. While out there I became interested in buying property and found an off plan development which I really liked and have put down a deposit on an apartment there. I am buying cash as this secured a hefty reduction in price. When we paid the deposit we signed a pre contract agreement (not legally binding) and are now ready to transfer the funds to the estate agent.
Is it normal to do this before we have a contract in place?
Has anyone else purchased in this way?

Any advice would be appreciated.

Elliemcg

 

[SHARM-SERVICES]

Dear Elliemcg,

Before you pay any more money make sure to hire an independent lawyer to check the due diligence of the project to ensure you are buying into something legally safe. You should also make sure the contract is in place and the lawyer has checked all the mandatory clauses are there to protect your rights - this is especially significant if you are paying cash on an off plan property in case of lateness or non-completion.

It is also advisable to transfer money to a lawyer's escrow account where possible, although there are many reputable agents who have handled many sales in a smooth and efficient way and are equally safe, but you have not mentioned with which agent you are with.

 

[Alan Cockayne]

Double Check

Dear Elliemcg,

Before you pay any more money make sure to hire an independent lawyer to check the due diligence of the project to ensure you are buying into something legally safe. You should also make sure the contract is in place and the lawyer has checked all the mandatory clauses are there to protect your rights - this is especially significant if you are paying cash on an off plan property in case of lateness or non-completion.

It is also advisable to transfer money to a lawyer's escrow account where possible, although there are many reputable agents who have handled many sales in a smooth and efficient way and are equally safe, but you have not mentioned with which agent you are with.

This is excellent advice Ellie.

The only way is to double check that the contract has your safety in mind and forget about handing money to agent holding accounts. Escrow and Corporate accounts are held by Chartered Lawyers an Chartered Accountants which have insurances in place. These are generally free. But Egypt accountants want to charge, which I believe is not legal, especially in Sharia law.

Agents are not as legally authorised and subsequently do not always hand over full fees. That has been the issue in many posts on these forums. Why take a risk?

Alan. Coralife-Style Consultants.

 

[LADY MUKK]

Do not hand over another penny until you have a legally binding contract that has been over with a fine tooth comb by a reputable lawyer, in both the uk and egypt (denton wilde and sapte have offices in uk and cairo) if the seller will not let you see the contract before handing over more money then walk away and put it down to experience that you did not lose any more money to a bunch of conmen, there are a lot of them in egypt all trying to sell flats to gullible westerners....if they are honest they will let you see the contract and wait whilst you get this all verified, make sure you see the due dilligence, to make sure that the person who is selling the apartment actually owns it and that there is no mortgage on the land, things like that. Dws are experts in sorting out these sort of problems when they arise, so should be good at preventing it happening in the first place. I just do not want what happened to me at desert pearl to happen to anyone else.