Potential buyer wants to buy my property in credit

[sinaiscuba]

I'm going to sell my apartment in Delta Sharm very soon and now there are two serious buyers. One of them offers cash in hand (whole amount, bank transfer). The other one gives far better price but wants to pay in credit (move in, pay rent plus installments).

Have you ever sold your apartment in credit? I mean, it's not bank credit. I as a seller, give a time to pay whole amount in four, quarterly paid installments. For me, it sounds good, because I can get higher final price than if I sell for cash now.

What’s your opinion? How can I secure all payments in light of Egyptian law? Finally, is it safe?

Thank you for all answers.

 

[Georgina]

I have no experience of this but have lived in Egypt for five years. In this economic climate I would take the money straight away. You never know what will happen. My friend rented out her marina apartment with an agreement that the British lady would pay the money at the end of the rental of two years to buy the apartment as she didn't have the full amount. The owner was living in Europe and the original price was in Euros. Over the two years obviously the Euro value dropped as the new buyer was going to pay an agreed price in sterling but the amount the owner would receive in Euros was much less. However, a month or so before the end the potential buyer went back to the UK for a holiday and never returned. She also never paid any of the utility bills and ran up around GBP900. She also supposedly lost her credit card and borrowed money off many different people to get her back to the UK for her holiday and just vanished.

You need to look at the difference you will get and whether it is worth the risk. I can't see prices rising at the moment.

 

[iain]

Hi Sinaiscuba

I think the problem may be that once the "buyer" moves in he may make an excuse to slow down or stop payments - then you would have a real problem getting them out I guess.
If you do go that way then speak to an Egyptian Lawyer for some advice or post on the Legal thread on this forum.

 

[sinaiscuba]

Thank you for all answers... I would have to speak with my lawyer Mr. Zeiad Yahia.

 

[Zeiad Yehia]

Dear Sinai Scuba,

I am answering your above question according to the email request you have sent.

Kindly be informed that selling a property in credit is a perfectly safe process given that the right precautions are taken. Right precautions are as follows:

Your contract MUST include an article that stipulates that the the ownership subject-matter of the sale contract is NOT transferred to the Second Party. The article shall b articulated as follows:

10.1. The ownership of the property subject-matter of this present contract shall not be transferred to the Second Party unless the purchase price is settled to the First Party in full, and the Second Party had obtained a written quittance from the First Party acknowledging receiving the purchase price in full. The aforementioned quittance is the sole tool that proves the completion of the ownership transfer process. In the event the Second Party had failed to settle the purchase price's instalments in the abovementioned due dates, the Second Party is deemed an intruder, and the First Party has the full right to get the property subject-matter of this present contract recovered instantly, with no need to resort for jurisdiction or any other procedures. In that case the First Party is obliged to refund the First Party the funds settled until then, after deducting 15% of the funds settled as penalty. The Second Party has accepted hereto.

10.2. the First Party shall have the right of Seller’s lien on the housing unit and appurtenances thereof to secure repayment of the remaining part of the price, its legal adjuncts and the expenses. The Second Party has accepted hereto.

10.2. Until he/she shall have paid the whole price to the First Party, the Second Party shall not dispose of or alienate the housing unit in any manner whatsoever and in particular by sale or assignment to any third party, putting it up as a real stake or share in kind in any company, without prior approval from the First Party in a written form. The Second Party has accepted hereto.

Kindly note that the contract shall be in Arabic and English, since Arabic language is the language solely recognized by courts in Egypt.


I hope that the above information is helpful.

In future, kindly keep all the legal questions in the legal thread, so it can be noticed, but thanks for the email notification anyway, and by the way I know who this is. I hope your daughter who was born in the states is in perfect health.

All the best,

Zeiad Yehia
Solicitor

 

[sinaiscuba]

Thank you Zeiad for answer. Talk to you soon...

 

[Alan Cockayne]

Alan Cockayne of Coralife-Style

Thank you for all answers... I would have to speak with my lawyer Mr. Zeiad Yahia.

In addition to Zeiad's legal comments I would like to advise readers not to give credit to anyone especially if you are not going to be in Egypt to collect the monies personally, on a regular basis. Leaving it to banks, to a power of attorney, management companies or friends is not a wise thing. Even with legal papers Egypt is not geered up for this type of transaction. Outsiders will always feel the brunt of such events.

Selling on credit is not a wise move. This is asking for hassle.
I know an owner who took two years to evict his tenants who paid nothing in this period before the courts eventually made them leave. It cost him dearly, then it was wrecked. Guess by which nationality?

This is Egypt. Even foreign buyers are looking for easy pickings and gullible owners.

Please, don't learn the hard way.

Alan Cockayne. (Consultant)