The “Farida” application obliges real estate developers to practice the “warranty memoir” to guard the rights of merchants

The “Farida” real estate expertise platform announced the requirement of the implementation of the “ESCROW List” machine to all real estate developers as one in all the fundamental conditions for offering their projects thru the platform, before this methodology grew to turn out to be necessary below the law.

What is the warranty memoir? And why is it a customary instrument to guard customer cash?

The guarantee memoir is outlined as a bank memoir that opens at a neutral third event – generally a bank or a licensed monetary authority – all thru which the funds of a particular deal or project are frozen, and the developer or seller is no longer paid till after particular conditions stipulated in the contract are fulfilled, such as the project reaching decided implementation rates.

This methodology targets to guard the rights of all parties:
• The purchaser or investor ensures that his cash will easiest be dilapidated in the implementation of the project all thru which he invested.
• The developer ensures that he will receive his dues automatically as soon as he fulfills his responsibilities.

The warranty memoir is dilapidated globally in real estate construction projects, main acquisitions, and hostile -border contracts, as it has turn out to be one in all the fundamental requirements in markets such as Dubai, Singapore and London. In Egypt, contemporary platforms such as “Farida” started to undertake the machine voluntarily, according to the unusual type in direction of organizing the actual estate market and stimulating institutional investment.

The important thing institutional application for the warranty memoir in Egypt

Ahmed Saqr, the founder and CEO of the platform, acknowledged that “Farida” decided to practice this methodology voluntarily from the conviction that the protection of customer cash is the principle guarantor of the sustainability of self perception between the investor and the developer, noting that the platform was impressed by this step from the experiences of aged markets, as the warranty memoir grew to turn out to be one in all the principle pillars in organizing the gross sales market on the map globally.

Saqr careworn out that “here is the first time that the warranty calculation machine has been utilized in this institutional create in the Egyptian real estate market,” pondering about that it is far a mannequin that enhances transparency and prevents the path of customer cash for any makes exhaust of out of doors the project implementation.

“Farida” .. promising digital real estate platform

The “Farida” platform was established with the map of making a qualitative shift in real estate buying and selling thru expertise, and it succeeded in a transient duration in attaining excellent outcomes, most notably the sale of a property value half a thousand million pounds in exactly two hours, half of which is in the first ten minutes of offering, which reflects the arrogance of merchants in the mechanisms of the unusual platform.

The platform also got knowledgeable licenses from the regulatory authorities after the issuance of the law regulating the participatory property from the Monetary Supervision Authority, to give real estate promotion companies and products, receive funds, submit subscriptions, and drift into paperwork electronically, which paves easy suggestions to initiating the first desirable real estate substitute in Egypt in some unspecified time in the future of the approaching duration.

A unusual stage of transparency in real estate financing

The ESCROW List by project of the “Saqr Accurate Estate” fund is a fundamental transformation in the type of financing and buying and selling real estate in some unspecified time in the future of the Egyptian market. As a substitute of counting on extinct systems that lack administration over the drift of funds, this methodology permits to separate merchants ’cash from developers till the actual implementation rates are achieved, making sure utilizing funds for the explanation allocated to them easiest.

Study also .. a “Farida” platform applying for the first license for a real estate fund in Egypt

This institutional application is the first of its kind in some unspecified time in the future of the local market, and it establishes a more aged and clear stage, which boosts the arrogance of merchants, and provides a safer ambiance for aquire, especially in gentle of the rising ardour of Egyptians out of the country and foreign merchants in coming into the Egyptian real estate market. It also paves the type for the knowledgeable legislation to generalize the warranty accounts, such as what’s utilized in global cities, which is terminate to Egypt’s evolved real estate markets..

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