The Egyptian Real Estate Council is preparing a law to establish a fund to compensate those who have not received residential units from companies, following several cases of money laundering and real estate fraud.
In a statement issued on Saturday, the council, which is affiliated to the Federation of Egyptian Chambers of Commerce (FEDCOC), stated that the Egyptian Financial Supervisory Authority (EFSA) is the regulator participating in the drafting of the law.
When the draft is completed, it will be filed with the Ministry of Housing, following which it will be submitted to parliament for approval.
Secretary General of the council, Tarek Shoukry, explained that the ministry has initially approved the idea.
“The fund will compensate clients who haven’t received their promised units. The law will also be included in all company contracts; companies will repay fees from the contract value,” Shoukry explained.
“In the first phase, these fees will be obligatory to all companies who deal with the New Urban Communities Authority (NUCA) and the Tourism Development Authority (TDA),” he said.
Head of the Egyptian Real Estate Council, Adel Lotfy said that companies that refuse to abide by this law will be exempted from operating in the Egyptian market.