Before Signing a Developer Contract: 8 Clauses to Check

Masari Team

The preliminary sale contract defines your rights through years of installments until handover and registration. Many buyers sign quickly because "all contracts are the same", then discover clauses that allow late delivery, area changes or unexpected fees. Here are the clauses lawyers recommend checking before you sign, with questions to ask the developer.

This guide is general information. Have a real estate lawyer review your contract before signing.

Why it matters

An Akhbar El Yom report in February 2026 described many developer contracts as adhesion contracts, written by one side. Even so, you can often negotiate an annex or at least understand the risks.

1. Delivery date and delay penalty

Watch for an "estimated" date or open-ended grace periods; some developers give themselves a year or more without compensating buyers. Ask for a fixed date, a developer delay penalty that mirrors your late-payment penalty, and a right to cancel and get a refund after a set delay.

2. Payment schedule and late-payment terms

Check the down payment, installments and any handover payment. Then read what happens if you pay late: the penalty, how many missed installments allow cancellation or withdrawal of the unit, and what is deducted from your payments.

3. Area: approximate or fixed?

Many contracts call the area "approximate" with a 5% to 10% tolerance, charging buyers for increases without compensating decreases. Ask for net and gross area, equal pricing for increases and decreases, and a maximum tolerance. Under the Civil Code (Articles 433 and 434, as commentators explain), a buyer can seek a price cut or rescission for a serious shortfall when the area is stated, within one year of actual delivery.

4. Specifications and plans

"Indicative" plans let the developer change the project. Attach a signed technical annex covering finishing, elevators, facades, unit number, floor, orientation and layout.

5. Maintenance deposit

State the amount, timing and where it is held. A study reported by Masrawy found deposits of up to 10% in some contracts, sometimes raised without the owners' union, so limit future increases.

6. Assignment and resale

Some contracts ban resale before handover or require approval with fees of up to 10% of the price, which affects investment returns.

7. Registration

Confirm the developer must provide registration documents, when, and that the land is properly allocated or registered with no mortgage on it.

8. Cancellation and disputes

Review each side's cancellation rights, refund timing, and whether disputes go to courts or arbitration, which can be costly for individuals.

The draft developers law

The Housing Ministry is preparing a draft law that, per Masrawy, would hold buyer payments in a bank guarantee account released in stages, with maintenance funds kept separately. It is still a draft, so your contract is what protects you today.

Checklist

  1. Fixed delivery date and developer delay penalty.
  2. Clear schedule and limits on late-payment penalties.
  3. Stated area with symmetric adjustment.
  4. Signed specifications annex and unit plan.
  5. Maintenance deposit terms.
  6. Assignment rules and fees.
  7. Registration obligations and land status.
  8. Cancellation, refunds and dispute forum.
  9. Full lawyer review before paying a large sum.

FAQ

Can a developer contract be amended?

Not always, but many developers accept clarifying annexes, especially on specifications and delivery. Ask in writing.

Is a reservation form binding?

It depends on its wording; some include deductions if you withdraw. Read it before paying.

What if the delivered area is smaller?

Document it with an engineer's measurement and consult a lawyer quickly, since legal deadlines apply.

Before you reach the contract stage, Masari lets you compare unit prices, floor plans and payment plans before contacting any seller.

Sources