Quote:
Originally Posted by Lyn
I have just visited the West Side Village website to find that the apartment I am buying is now smaller and with a COMPLETELY different layout. I rang West Side and they said that Seddons should have contacted me because the layouts where changed about 4 - 6 weeks ago.
West Sides's new website also has a section on transparacy and how open they are. As quoted by Stephen Smith: "We wish to hide nothing from our buyers and to make the process as seamless as possible" He has obviously forgotton about the fitted kitchen and wardrobes that they are no longer supplying, free beach access that now may be chargeable.......the list could go on.
I have spoken to Seddons and they said that the developer did send revised plans but they where informed to continue with the original plans. They also said that they understood these plan changes to be minimal and they would not effect any room layouts or square footage. So they have not contacted anyone. Seddons have reassured me that the developer can not make the proposed changes without informing all concerned. I understood that bulding work started earlier this year which would mean the new plans are in place as the revised layout for my apartment is a totally different shape. I also originally had 1 terrace, I now have 2 and they are on a different side of the room to the original plans. Our apartment is in Block B and is a unit 1 - 1 bedroom.
If these new plans are to go ahead we will be seeking major compensation if we still go ahead.
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Hello Lyn,
I saw this thread and thought I had to add some general thoughts on what you say.
My comment IS NOT aimed specifically aimed at any development and certainly not this development in particular. I have experience of property sales in Egypt and the due diligence and contract negotiations. So I will try to shed some light on this important issue for others looking to buy property in Egypt.
For buyers anywhere in the world, I think it's good idea to try and equip yourself with the skills to evaluate the property proposition.
I'm cautious. Even more so in these recessionary, doom and gloom times.
Try and speak to a few lawyers first. Does the solicitor really knows his/her stuf. Check with them how well connected in the country you are investing in. Have they ever been there?
UK or Irish lawyers, covered by their respective Law Societies are a good option. This is safer. So I prefer it.
I also want to see document translators who have professional insurance. Which probably means a UK/Irish translator rather than a local! No joke, I once uncovered a translation error in my contract too late. I paid a heavy price for my lack of caution.
So, what is this due diligence activity?
Some examples are:
Understanding land title
Who owns the land?
Is it paid for yet?
Is it properly and legally owned?
Permissions
Has it got build permission yet?
Has build permission been applied for yet? .
Remember that in Egypt, and elsewhere, it can be common to start building without all these points being satisfied. Again his may be okay in some instances - but be aware and aware at what stage you pay monies out.
Ownership
If you are getting freehold title to your apartment, are you also obtaining title to your share of the land its built on and the development grounds.
Not all sellers of developments in Hurghada area offer you a share of the freehold to the land. This can be okay. But are you aware of this? Are there any implications?
Size Matters
You also want to be sure that your apartment ends up being the right size.
What are the m2 areas of common parts (common areas) included in the total m2 area?
How is the apartment measured? e.g from mid way on outside/inside walls or from the outside.
Balcony size?
Facilities
Are facilities committed to be made available and built in the contract?
Will they be free or paid for by owners?
Completion
How is this defined?
Look at snagging process/provisions.
Look for obligations on seller before title can be transferred
Contract Matters
A Seller is under no obligation to make changes to contracts. You can ask and, if your points for amendment are refused, then decide if this is an acceptable risk.
I like to see an architects copy of the development plan and the individual unit plan (with sizes) attached to a contract.
There are many terms in a contract to consider. For example, if I get detailed plans then I check the contract terms for what will happen if they are subsequently varied. Like Lyn's example of balcony space changing.
There are other contract details to consider of course, but hope some of these points on due diligence topics are of use.
Your comments, additions, corrections on this etc are very welcome.
Lance