10,000 real-estate developers cheat people in Algeria

Algeria counts 15,000 real-estate developers including. Of them, 5,000 only are declared at the real-estate insurance fund. The rest of the real-estate developers sell houses on designs because they do not have necessary supply to achieve housing projects, said board of directors chairman of the national fund of real-estate promotion.

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• “Those real-estate developers claim to their clients that they are declared to win their trust. They cheat them by showing membership card to the real-estate insurance fund,” Amhend Sahraoui told Echorouk.
• “The real real-estate developers have the card, an insurance certificate and an insurance contract they sign with the fund for paying 5.1 percent of the project value,” he added.
• He believes that the real developers represent big companies declared at the fund while the “fake ones are no more than small building contractors.”
• “Ten real-estate developers who are going bankrupt have come to the insurance fund. Some of them have troubles with justice as they did not respect deadline in achieving their projects. Others got warning from the fund to settle their situation and others have contract with people but they did not respect them.”
• Sahraoui says some developers use their membership cards to cheat people but actually it does not mean that they are declared at the fund. “They must have insurance contract.”
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• No honouring construction designs in Algeria, says contractors leader
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• Algerian public authorities started early in 2009 implementing a preliminary sale contract on designs for all the real-estate developers before provincial housing departments approbation of beneficiaries list.
• Housing ministry prepared a set of regulating texts to oblige building contractors to fit out housing compounds before delivering them.
• Chief of construction contractors’ union Ahmed Ben Keoud told Echorouk Algeria is still working with old designs used in building schools and houses for years.
• “There are no honouring designs. There is a lack of efforts in this regard.”
• He added that real-estate developers inside the union do not make any effort to improve their projects. “They only look for money.”
• He believes that developers care only for obtaining design documents while the other details are useless for them.
• A number of developers got money from beneficiaries but they did not start the construction for many reasons. Others are prosecuted for stopping their projects or demolishing their buildings due to the absence of licence.