Court Orders Termination of Real Estate Sale Contract Against Mountain View, Full Refund, and Compensation

Andersen in Egypt secured a landmark ruling barring developers from selling units or taking payments before obtaining required project approvals. The judgment confirms that developers must first obtain the ministerial decision approving the project, master plan, and engineering drawings, secure all necessary governmental approvals and building permits, and complete the legally prescribed minimum percentage of construction.

The court ordered the termination of a real estate sale contract against Mountain View, the refund of all amounts paid by the purchaser, and compensation after finding that the developer had marketed the project, executed sale agreements, and received payments before complying with these mandatory statutory requirements.

Our client entered into a sale agreement for a residential unit within one of the developer’s projects on the basis that the project had satisfied the legal requirements governing the marketing and sale of real estate units under Egyptian law.

Subsequent investigations established that, at the time the unit was marketed and sold, the developer had marketed the project, executed sale agreements, and received payments from purchasers before obtaining the ministerial decision approving the project, its master plan, and engineering drawings. The investigations further established that the developer had not obtained the required governmental approvals and building permits or completed the legally prescribed minimum percentage of construction before commencing sales.

Acting on behalf of our client, Andersen in Egypt pursued the matter before the competent court, relying on the statutory framework governing real estate developments.

The case ultimately progressed beyond a contractual dispute concerning the purchaser’s alleged withdrawal from the agreement. Following a comprehensive review of the evidence and the applicable legal framework, the court found that the developer had offered and sold the unit in breach of these mandatory statutory requirements and consequently ordered the termination of the sale contract, the refund of all amounts paid by the purchaser, and compensation for the damages sustained.

The judgment reinforces that developers must comply with the mandatory statutory requirements governing the marketing and sale of real estate projects before offering units to purchasers. It further confirms that non-compliance with these requirements may result in the termination of the contract, restitution of sums paid, and compensation.

To find out more, please fill out the form or email us at: info@eg.Andersen.com

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