Due Dilligence in Hurghada

[PROPERTY FORWARD]

This resort is a fantastic place but has suffered greatly from developers building on ambiguous land, altering sizes of apartments, reselling apartments etc.

I would just like to know if there is a solution to this problem. What are agents doing to check documents of land registration before selling properties.

Time after time we are seeing developments close due to land ownership negligence, mortgages on land and buildings.. Surely this should be looked into.

Any thoughts?

 

[NeilHollingsworth]

We are now passing all new developments through solicitors in Cairo, Denton Wilde Sapte LLC, they have done a fantastic job on previous work. I would recommend to any developer to contact them and ask for a due diligence report to be done, if your development is good, legal and you want to give confidence use these solicitors. It may cost more than using a local attorney in Hurghada but as they say you get what you pay for!!!!

 

[J Chadwick]

Hi Property forward,

I have just returned from a long trip over there and went to El Gouna, Sahl Hasheesh and Hurghada and the reason I was over there as long as I was, was because of the same reasons as you have mentioned - that the place is a great spot and a good investment. But you are right, during my research I heard a lot of horror stories and strong rumours and it seems that some so called developers have burnt more than few fingers, and lax laws on land purchase have not helped.
I had to weigh up the risks against the possibe benefits and decided to go ahead and purchase somewhere, but not before I had seen the site numerous times and had my own solicitor check all the due dilligence (and there is a lot required) with various titles and enviromantal searches.
So I thought that the particular location where I bought was excellent value considering the location and it being GENUINELY on the beachfront (another little problems with agents selling property over there - exaggeration of the truth) - workers were on site, the solicitor I appointed was happy and everything checked and It was a good deal.
Basically all I am trying to say is there has to be some risk involved (particualy buying a deveelopment under construction) but I was happy with the outcome I found. And if an agent/developer cannot provide you with all due diligence within a day of two of asking then you have to assume all is not in order - there is no way they would not give it to you if everything was in order
So if you are happy with what you are given off the agent/developer then it all comes down to whether you are happy in yourself doing it.
The other thing I took into account was that bad press travels a lot faster so you do hear a lot of bad news over there but there are also thousands of happy buyers.
I hope this is of some help and I cannot comment on the lengths agents go to to check the relevant documents but I went around them and dealt directly with the developer.
Thanks
Johnny

 

[NeilHollingsworth]

Beachfront in Hurghada needs lots of checks as it is only hotels that are supposed to build beachfront hence why most apartments are second, third fourth line and all hotels are beachfront. This was the case with a few recently advertised developments that fell through!!!! Although there are some areas that it is possible, just make sure when buying they have the building licences and permissions.

 

[J Chadwick]

Thanks Neil,
yes I a absolutely agree and all permissions and licences and POAs were in place. I think I know which ones you may be talking about as I heard a few stories over there myself.
Where I bought is not in Hurghada itself but a few kilometres North which is not an issue for me as it seems Hurghada will spread along the coast as like you said in Hurghada itself you have the coastline dominated by the Hotels, but that is why I thought it important to find something with a private Beach.

 

[Alan Cockayne]

Safe investments.

Time after time we are seeing developments close due to land ownership negligence, mortgages on land and buildings.. Surely this should be looked into.

Any thoughts?

Good projects have the correct documentation and their own funding to build it. These are generally in prime or beach-front locations and have nothing to hide, but more expensive to buy into.

There are several hundred average projects that are a lot cheaper, all eager to attract the naive buyer who may think cutting corners will save money. In the long run they won't.
I'm afraid it's those "cheap-skate" speculators wanting "something for nothing" that allow rogue Egyptian developers and irresponsible agents to thrive, bringing the industry into disrepute.....
For sure they will take your money, you're allowing them to, as they can thrive on cancellation fees.

Neil is perfectly correct. Pay for the full legal work and be safe. You do it the UK so why risk your savings in countries you know are suspect. Our UK and European legal associates are here to help so use them and be safe. Readers can p.m. either of us to connect to them.

Alan.