You do need a Lawyer for this, even though you cannot register for the Title Deed until your property is finished and registered first by the Developer.
This registration takes a minimum of 6 months and involves preparation of forms for the Public Notary and necessary Official Documents.
Investing in Real Estate in Egypt can be daunting, yet exciting, if you know the Legal Procedures, and if you are not conversant with Egyptian Real Estate Law having ‘trustworthy knowledgeable Agents and Lawyers assisting you, takes the worry out of having to deal with the legalities and therefore leaving you to enjoy the more pleasurable aspect to Property Investing.
First you choose the property and the area that is right for you; this is done no better than a visit to the development yourself. Once you have found your Investment Opportunity in your chosen area, and your chosen type of Unit, you need to reserve your Unit, paying him the ‘Reservation Fee’ which usually includes the deposit on your Unit.
After this, you need to find for yourself an independent Lawyer. He will analyze and assess all the documents that are involved in the Legal process and issue you with reports on his findings.
Your Independent Lawyer will make an analysis on the Developers documents, verifying that all the documents are in order, issuing you with your own copy of the ‘Due Diligence Analysis Report’ for the development you are investing in, and given with his Legal Stamp of Sanction. Your Independent Lawyer will also assess your Contract, assessing each article, and including all of this in the ‘Contract Assessment Report’ also with the Lawyers ‘Legal Stamp of Sanction”.
This report will inform you that everything is in order and that you can then sign your Preliminary Purchase Contract and continue your payments. You pay the developer direct into his account which is usually stated in the Contract. You then follow your Lawyers instructions for Payments, your Lawyer will be with you every step, assisting you with any problems or questions until you have your key delivery.z
You do not need a special visa to be able to buy property in Egypt. The visa you obtain from the Airport is sufficient enough for purchasing property in Egypt . 16/ After purchase is a Visa necessary
It is necessary for you to have a tourist visa if you are living in Egypt, or working. This can be obtained easily. If you are European, you can get a maximum one year Tourist visa from the immigration office.
This means that you will receive all the necessary Reports and documents for your purchase, and have an on hand legal representative to assist you and advise you of the steps from the time you pay your reservation fee, to the time you receive your unit at key delivery
Some Developers will allow you to sell (flip) the property before you have finished paying for it, but this would include a percentage payable to the Developer from the first Contract issued from him, from the main first price in the original contract.
Mostly, Developers/sellers have a pre-emption clause included in the Contract which means, that they get first refusal on the sale.
Most Developers, also, require that new owners continue the previous contract given to the Second Party at the first point of sale
This means an amount is payable to cover administration charges. NB. Some Developers also require a small percentage of the sale. This area is best checked in your Contract and Contract Assessment Report.
If the owner of the assets dies while owing money to the Government, this is taken first before passing on the left assets to the chosen Heirs.
It is advised if you have assets in Egypt, to make a legally standing will from an Independent Lawyer who can carry out your last wishes. Inheritance Laws are different in any country, and in Egypt, if (God Forbid you were to pass on,) you would need a legal will to ensure that your assets go to the loved ones of your choosing.
You can register your name for the property tax, after it has completed construction with finishing.
Real Estate Taxes are worked out on a basis of market and rental value. The Tax Authority evaluates your dwelling and takes 40% of this into a consideration for a total of 20% taxes. So you have a 60% free of taxes, and pay 20% out of the 40% valuation.
The best choice for suitable property that is available across the market today is that property that you have inspected on site and that it meets your requirements and approval for the location, size and price.
Furthermore, the best Investment is where you have all the information and taken all necessary steps to safeguard your investment.
As a summery, the best choice for suitable property on the market will be that which makes you a tidy profit in the long term.
Follow the Legal advice of your Lawyer, whatever choice you make, be it a studio apartment or a villa, having clear observation of all the legalities of purchasing in Egypt will give you that freedom to make that choice without the anxiety of tribulations.
The best choice for suitable property that is available across the market today is that property that you have inspected on site and that it meets your requirements and approval for the location, size and price.
Furthermore, the best Investment is where you have all the information and taken all necessary steps to safeguard your investment.
As a summery, the best choice for suitable property on the market will be that which makes you a tidy profit in the long term.
Follow the Legal advice of your Lawyer, whatever choice you make, be it a studio apartment or a villa, having clear observation of all the legalities of purchasing in Egypt will give you that freedom to make that choice without the anxiety of tribulations.
The Contract is set out over a number of pages and is issued in two original duplicates. One is for your own file (this is the one that is used to present before the Presiding Judge for him to witness and pass Judgment on if undergoing the ‘Court Validity Suite’), and the other is sent to the Developer for him to keep in his own file.
Once the Original Document has finished in the Court, you have your contract back in your own possession. - Once the Original Document has finished in the Court, you have your contract back in your own possession.
The Document contains the details of both Parties to the Contract agreement. Including the details of the subject in question.
The Details within the Contract should contain the full information of the First Party who is the Seller/Developer. This means his ID no. his address, and full details, including any company that he is representing
You are the Second Party on the Purchase Contract. Your details should also be included, this having your passport no and full details on your passport, your full name and address.
The Preamble should state the full details of the unit you are purchasing, which is the subject matter of the Contract. It should state here, the Unit no. and the plot no and location of the land, along with how many bedrooms, bathrooms, the floor level it is on, and the square meter age.
Further details of payment schedules, payments made already and agreement to the forbearing is included.
Articles bearing the maintenance agreements, payments and penalties, and management companies to oversee the maintenance program of the development resort - If there are any delay penalties. Regarding late payments by the purchaser and or delivery of your unit.
General rules of conduct for living or renting out your unit.
All articles within your Contract should be explained in the Contract Assessment Report given to you by your Independent Lawyer.
The Developer only can sign the Contract. If anyone else has been given authority to sign the document, the signatory will have an official “Private Power of Attorney” to sign Purchase Contract.
98% of Real Estate and Land is Free-hold in Egypt. This excludes Sinai - Sharm El Sheikh whereby Land and Buildings are sold on a 99 year Lease basis.
Under the new ‘Egyptian Investment Law’, foreigners can now own two plots of land by a Title Deed that Equal to 4000m2. If your unit is 50m2 with a common share in the land - for example, this counts as one plot.
Owning Egyptian Real Estate by the Title Deed warrants that you do not re-sell for 5 years, unless you are leaving Egypt to not return to Invest, and then this is only given by special dispensation from the Prime Minister.
To give you safety until you obtain the Title Deed, it is highly recommended that you present your signed Original Contract between you and the Seller before the presiding Judge in Hurghada, who will witness it, give his Judgment and give it his official ‘Stamp of Sanction”. This is called ‘The Court Validity Suite’. This gives you safety against the following :
Bankruptcy of the Developer. Especially in this time of recession, Your Unit will not be taken into consideration by the receivers.
In case of double selling, the contract, stamped and witnessed by the presiding Judge proves that you are the rightful owner until the Title Deed
In case of Death, any assets will automatically pass on to the Sellers Heirs, who could rightfully claim under Egyptian Law, that the Contract is not between you and them.