Property Law in Egypt

Purchasing property in Egypt involves navigating a complex legal framework to ensure ownership is legally recognised. This guide details the legal process, fees, necessary documents, different types of contracts, and the legal rights of buyers in case of disputes with developers.

Legal Process of Buying Property in Egypt

Step 1: Conducting Due Diligence

Before purchasing property, the buyer must:

Property law in Egypt. lawyer and solicitor specialising in property law
  • Verify the seller’s ownership by checking the title deed at the Real Estate Registration Office (Shahr El Aqari) located in each governorate. In Cairo, the main office is in Lazoghly Square, Downtown.
  • Ensure the property is free of legal disputes, mortgages, or encumbrances by requesting a property status report from the Real Estate Public Notary.
  • Confirm zoning laws and building regulations with the Local Municipal Authority to ensure the land or building is in compliance.
  • Residency can be sought if property value is over $100,000 USD.

Step 2: Signing the Preliminary Sales Agreement

  • A preliminary contract (or deposit contract) is signed between the buyer and seller.
  • A deposit, typically 10-30% of the total property price, is paid.
  • The contract should specify payment terms, property handover details, and any penalties for breaches.
  • It is advisable to notarise this contract at a Real Estate Public Notary Office to add an extra layer of protection.

Step 3: Notarisation and Legalisation – Property Law

  • The final sales contract must be notarised at the Notary Public Office (Maktab El Tawseek) in the same jurisdiction where the property is located.
  • If purchasing from a developer, the contract should be registered in Economic Courts to ensure enforceability.
  • Fees for notarisation typically range from 2-3% of the property’s value, payable at the notary office.

Step 4: Registering Ownership at the Real Estate Registration Office

  • A complete application with supporting documents (including the seller’s original title deed and buyer’s identification) must be submitted.
  • The property undergoes an inspection to confirm compliance with Egyptian property laws.
  • Registration fees vary between 3-6% of the property’s value and must be paid at the registration office.
  • The process usually takes 6-12 months, depending on the location and complexity of the ownership history.

Types of Property Contracts in Egypt

1. Green Contract

  • The Green Contract is the strongest form of ownership in Egypt.
  • It is fully registered and provides the buyer with complete legal ownership.
  • Requires approval from the Notary Office, the Real Estate Registration Office, and the Ministry of Justice.
  • Registration can take 6-12 months.

2. Preliminary Sales Contract

  • Used for off-plan or new developments.
  • Must be notarised and legalised in Economic or Civil Court to ensure legal standing.
  • Does not provide full legal ownership but serves as a binding agreement.

3. Power of Attorney

  • Used when a buyer cannot be present for the transaction.
  • Grants another person legal authority to act on their behalf.
  • Should be registered with the Ministry of Justice and Real Estate Public Notary.

Purchasing Property from Developers

Legalisation in Court

  • Contracts with developers must be submitted to the Economic Court or Civil Court in Cairo for judicial authentication. Some cities also have Civil Courts where it can be submitted.
  • This process ensures the buyer’s rights are protected and prevents the developer from reselling the property to another party.
  • Fees for legalisation in court range from 2-4% of the property’s value.
  • The court process can take 3-6 months.

Buyers’ Rights if a Developer Runs Out of Money or Goes Bankrupt

Legal Process to Recover Funds

Step 1: Filing a Lawsuit

  • Buyers must file a case at the Economic Court or the Civil Court in the governorate where the property is located.
  • A lawyer must submit the notarised contract, proof of payments, and developer’s registration documents as evidence.
  • Court filing fees range from EGP 500 to EGP 5,000, depending on the case value.

Step 2: Freezing Developer’s Assets

  • The court may issue an injunction to freeze the developer’s assets to prevent them from selling other properties.
  • Buyers can request an asset disclosure order to investigate the developer’s financial standing.

Step 3: Liquidation Process under Property Law in Egypt

  • If the developer declares bankruptcy, the case moves to Bankruptcy Court, where assets are liquidated.
  • Buyers with registered contracts are prioritised in repayment over those with only preliminary contracts.
  • The process may take 1-3 years, depending on the complexity of the case.

Likely Court Outcomes

  • The court may rule for a full refund if the contract specifies non-performance penalties.
  • If partial construction was completed, buyers may be offered a discounted settlement.
  • In some cases, buyers may be awarded alternative units in other projects.

Final Thoughts

Navigating property law in Egypt requires careful legal steps. Buyers should:

  • Verify all property documents at the Real Estate Registration Office.
  • Ensure contracts are notarised and registered in court.
  • Hire a lawyer for legal representation in disputes.
  • Be aware of their rights in case of developer bankruptcy.

Registering the contract in court and ensuring it is legally recognised are crucial to safeguarding ownership rights. We make sure that all of your legal rights are registered in case that the worse should happen. We do all the background checks and check the contracts before you sign. Our fee for going with you to viewings and assisting in negotiations is $100 USD or EGP equivalent per day. We will also look over the contracts to make sure that they are fair and protect you. Registration fees start at $75 USD plus government fees. All fees will be discussed during our free video consultation.

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