(Reservation – Down Payment – Full Cash Payment)
1️⃣ Reservation Deposit (Booking Fee)
Typical amount:
- EGP 50,000 – 200,000
- Or 1–3% of unit price
🔹 If the client cancels:
- ❌ Usually NON-REFUNDABLE, and some can refundable.
- Considered an administrative & holding fee
- The unit is removed from the market during reservation
🔹 Exceptions (rare):
- Developer fails to provide legal documents
- Unit details differ from contract
- Project cancellation by developer
✅ In these cases, full refund is possible
2️⃣ Down Payment (After Contract Signing)
Typical down payment:
- 10% – 30% of unit price
🔹 If the buyer cancels after signing:
- ❌ Down payment is usually NOT fully refundable and debends on contract it between 10% till 20% from down payment or amounmt for all unite.
- Common deductions:
- Reservation fee
- Administrative fees
- Marketing & legal costs
🔹 Common practice:
- Refund after deduction: 60%–80% of paid amount
- Refund timeline:
- 3 to 12 months
- Sometimes paid in installments
🔹 Alternative option (very common):
- 🔁 Unit resale or replacement
- Transfer to another buyer
- Change to a different unit in same project
3️⃣ Installments Already Paid
If the buyer has paid down payment + installments:
🔹 Cancellation results:
- Developer deducts:
- 10%–30% of total paid amount
- Remaining balance refunded
🔹 Refund conditions:
- Paid after unit resale
- Or according to developer’s refund schedule
- Can take 6–18 months
⚠️ No instant refunds in most projects
4️⃣ Full Cash Payment (100%)
🔹 Before delivery:
- Refund usually allowed
- ❌ Deduction applies (5%–15%)
- Refund timeline:
- 6–12 months
- Sometimes in installments
🔹 After delivery:
- ❌ Refund NOT allowed
- Only options:
- Resale through developer
- Transfer to another buyer
- or can pay penalties 10%
5️⃣ Developer Delay in Delivery
This is one of the strongest refund cases.
🔹 If delay exceeds contract grace period:
- Buyer may request:
- Full refund
- Or compensation
- Or contract amendment
🔹 Typical grace period:
- 6–12 months stated in contract
✅ Refund usually 100% or with very minor deductions
6️⃣ Force Majeure Clauses
Included in most contracts:
- Government regulations
- Economic conditions
- Natural events
⚠️ These protect the developer and may:
- Delay delivery
- Delay refunds
- Reduce compensation
7️⃣ Important Legal Notes (VERY IMPORTANT)
✔️ Always check:
- Contract cancellation clause
- Refund timeline
- Penalty percentage
- Delivery date & grace period
✔️ Verbal promises are NOT legally binding
✔️ Refunds are almost never instant
8️⃣ Summary Table (Quick View)
| Payment Case | Refund Status |
|---|---|
| Reservation fee | refundable during 2 weeks. after that non refundable |
| Down payment | ⚠️ Partial refund |
| Installments paid | ⚠️ Partial refund |
| Full cash (pre-delivery) | ⚠️ Partial refund |
| Full cash (post-delivery) | ❌ No refund |
| Developer delay | ✅ Refund possible |
9️⃣ Pro Tip for Buyers & Investors 💡
- Always ask before paying:
- “What is the cancellation penalty?”
- “When will the refund be paid?”
- Choose projects with:
- Clear contracts
- Strong developer history
- Consider resale option instead of cancellation