Tarek Shoukry, Head of the Real Estate Developers Chamber at the Federation of Egyptian Industries (FEI), said that enforcing a single, standardized real estate contract across all projects would be difficult both practically and legally, given the diversity of the market.
Shoukry explained that variations in project types, locations, development models, and developer capabilities make a one-size-fits-all contractual framework unworkable. Instead, he argued that a balanced contract model—one that clearly defines the rights and obligations of both developers and buyers—would offer a more realistic and effective solution.
“Most countries do not rely on a single contractual template,” Shoukry said. “The priority is ensuring clarity, accountability, and protection for all parties involved.”
He added that the Real Estate Developers’ Federation is expected to play a central role in regulating the market through the introduction of a strict developer classification system. This system would rank developers based on financial solvency, technical capacity, and historical performance.
Shoukry stressed that prior track record would be the most critical factor in oversight. Developers found to have failed to meet their obligations to clients could be downgraded in classification or, in severe cases, have their professional licenses revoked, described as the “maximum penalty” for violations.
Commenting on the unified contract concept, Ahmed Elbatrawy, Founder and Chairperson of The Official Egyptian Real Estate Platform, said that several countries, including the United States, apply standardized contracts that are legally binding on both parties. He cited the FAR/BAR contract used in the U.S. as an example of a model that ensures fairness and enforceability.
“In the US, any breach of contract results in clear accountability,” Elbatrawy said. “Just as a developer can reclaim a unit if a buyer fails to meet payment obligations, buyers are equally protected if a developer fails to deliver according to the agreed specifications or timeline.”
Elbatrawy added that such systems are supported by strong regulatory bodies that oversee relationships between developers, buyers, brokers, and other market participants, enabling dispute resolution outside traditional civil courts—an approach he said remains largely absent in practice.
Shoukry further noted that Egypt’s legislative framework already requires developers to formalize all transactions through the state. This includes obtaining licenses and central registrations for developers, marketers, brokers, and platform operators.
He also pointed out that developers are required to establish escrow accounts for their projects, holding no less than 30% of the project value in cash. Withdrawals from these accounts must follow an approved execution schedule and are subject to regulatory oversight, a measure aimed at safeguarding buyers’ rights and ensuring project completion.
