Problems from the seller and the buyer, and ways to solve them.

Buying real estate on the secondary market is a sale and purchase transaction between two individuals. In this case AKAR REAL ESTATE is the guarantor of compliance with all terms of the transaction.

There are 3 parties involved in a transaction on the secondary market:

- seller;

- real estate agency;

- buyer.

The AKAR REAL ESTATE agency is an intermediary that guarantees strict compliance with all clauses of the contract, payment terms and receipt of a full package of documents for real estate by the new owner after he has paid the entire amount.

Payment (secondary market)

The AKAR REAL ESTATE agency accumulates the full amount of money for an apartment before the process of its re-registration from the seller to the buyer, acting as a kind of bank cell.

This guarantees the seller that he will receive the amount agreed in the contract in full. And the buyer receives a guarantee that he will have a full package of documents for the apartment, keys and the property itself without debts and claims from third parties.

In the secondary real estate market in Hurghada, only full payment for an apartment is provided upon purchase, installment plan is not provided. This is due to the impossibility of regulating compliance with all clauses of the contract between two individuals.

Terms and process of the transaction in the secondary real estate market

As a rule, a transaction is carried out within a period of 2 weeks to 2 months by mutual agreement.

This is due to the fact that in most cases the sellers are not in Hurghada, they draw up an agency agreement with AKAR REAL ESTATE, leave the keys to the apartment and fly home.

After a real estate buyer has been found, viewed the property, made a decision to purchase, signed an agency agreement and paid the full cost of the apartment under the agreement to the agency, we inform the seller and he arrives to Hurghada.

The buyer can pay the money for the apartment in 2 ways:

- transfer money to the account of a real estate agency;

- pay in cash.

At the same time, the buyer receives his copy of the agency agreement, where the duties, responsibilities and guarantees of the real estate agency are written, as well as the terms

The seller is not invited to the transaction if the agency has only the amount of the reservation, because before paying the full cost of the apartment, the buyer may change his mind about purchasing the property. The full paid amount under the contract guarantees the seller that the transaction will take place.

If the seller does not arrive and does not re-register the apartment within the agreed time frame, the paid amount is returned to the buyer in full.

If the buyer changed his mind about purchasing an apartment before the full amount was paid under the contract, then a penalty is withheld from him, the amount of which is specified in the agency agreement.

The agency agreement also provides that if the buyer paid the full amount, it is an uncontested right to re-register the property. That means that the buyer cannot change his mind at the last moment about buying an apartment and ask for his money back.

The seller, with the support of the AKAR REAL ESTATE agency, re-registers the housing to the buyer, hands over the keys and receives payment for the apartment in full, prescribed in the contract. This is the end of the transaction.

"Pitfalls" of transactions in the secondary real estate market in Hurghada

Why does the agency avoid personal meetings between the seller and the buyer, direct transfer of money from the buyer to the seller?

Over the 14 years of work of the AKAR REAL ESTATE agency, a colossal experience has emerged. It showed that our system of transactions in the secondary market guarantees strict compliance by all parties with the clauses of the contract. Otherwise, there may be different problems:

1. The buyer can bargain. This happens in 99.9% of situations during a personal meeting between the buyer and the seller. In this case, the seller is under quite serious pressure, which not everyone is able to overcome. As a result, the buyer can get the discount, and the seller will receive an amount less than the agreed. The agency can in no way influence how the buyer will behave when meeting the seller, and what he will say and ask. Therefore, it is best to avoid a personal meeting between the seller and the buyer, the agency acts as a full representative of the seller and can answer any questions regarding the property.

2. Fraud by the buyer. The process of re-registration of ownership of real estate in Egypt is irrevocable. That is, even one minute after the fingerprints are placed on Taukil, it is already impossible to cancel the transaction. And even if the buyer showed the money to the seller and promised to give it to him after the re-registration of the property, then in fact, after the completion of the re-registration process, the buyer may not give the money at all, or give it not in full. There is no possibility to influence him, unfortunately. The police in this case is not the easiest way out, since it is quite difficult to regulate relations between citizens of other countries. Accordingly, the full amount of payment accumulated in the agency automatically eliminates such a possibility of fraud on the part of the buyer.

3. The issue of privacy. In some cases, the buyer or seller does not want anyone to know about the sale transaction. The agency guarantees complete confidentiality and backs it up with a contract. If the seller and the buyer meet in person, it is impossible to guarantee confidentiality and non-disclosure of the fact of the transaction or terms of the transaction.

4. The seller can also bargain. Not only the seller, but also the buyer is often in a dependent position, especially if he has already moved to the apartment and began to equip it (by prior arrangement). Again, this situation is avoided by the lack of personal contacts between the seller and the buyer.

5. Fraud by the seller. The seller, having received money from the buyer, may simply disappear and not re-register the property to the buyer. In this case, to return the money or demand to re-register the apartment, in fact, is almost unrealistic. Therefore, the agency accumulates money and transfers it to the seller only after re-issuing documents for the ownership of the buyer.

6. Rights violation of the real estate agency. After all the work done by the agency, the seller and the buyer can state that the transaction will be carried out without an intermediary, and the agency will not receive its commission. This problem is also automatically eliminated in the absence of personal contacts between the seller and the buyer.