OUR LEGAL DEPARTMENT WILL ADVICE YOU ABOUT ALL LEGAL SITUATIONS IN EGYPT

One of the most common questions that real estate agency faces is the question of private ownership and the procedure of buying or selling real estate object in Egypt. The experts from the Living Red Sea Co. are ready to examine the question and give the correct answers right now.

• The rules of ownership of real estate objects and lands for foreigners are defined in 2 laws:

1. Law No 230 of 1996 “The ability of buying of apartments, buildings, lands in Egypt for foreigners”.
2. Law No 8 of 1997 “The rules, insurance arrangements of the investments”.

• The foreigners were allowed to own real estate properties on such terms:

1. The ownership is limited to only two real estate properties throughout Egypt for accommodation purposes of the person and his family, in addition to the right to own real estate needed for activities licensed by the Egyptian Government.
2. The area of each real estate should not exceed four thousand square meters.
3. The real estate is not a historical site.

• The theory doesn’t have so much in common with the Russian system and we need to make it clear for everybody is interested.

In most cases the procedure of buying real property in Egypt consists of such steps:

• examination and selection of the properties, taking the decision about buying 1 or more of them;
• signing the primary contract and paying the deposit if needed;
• signing the final buy-sell contract and paying the full amount of money;
• receiving the “tawkil” (power of attorney) from the State notaries;
• court verdict certifying that the signature on the contract truly belongs to the seller;
• Registration by green contract.

• The last 2 steps could be canceled. Moreover, these last steps could become the alternative ways of owning properties in Egypt.

We recommend obtaining the court verdict if:

• You would like to receive a long-lasting travel visa;
• You want to receive the papers for electricity, water, and telephone written in your name.

The trusted lawyer is responsible for receiving the court verdict. You must only provide him the power of attorney to act on behalf of a buyer. The original version of the buy-sell contract and a copy of “tawkil” first presented to the court, and then the court defines the date of the final session. Normally the final decision will be taken within 2-5 months. The time depends on the workload of the courts.

You have to make the registration by green contract if:

• you would like to live permanently in Egypt (receiving the resident visa requires the green contract);
• you are planning to take a credit from one of the Egyptian banks;
• you are interested in buying a new car;
• You would like to get cheaper services (e.g., medical treatment, transport, tickets to enter the museums, etc).

Official Registration is a serious step. By law, No 230 of 1996 a foreigner who registered the property could not sell it for 5 years. Here also comes the limitation of buying only 2 properties. Without official registration, the foreigner could buy as many properties as he wants. The information about the purchase comes to the embassy and, for example, the tax office located in Russian Federation could be interested in the source of the money paid for the property in registration. However, the green contract is the final document concerning the real property in Egypt. In other words, this is the most powerful paper for this case. The method guarantees full and maximum protection. Egyptian law recognizes it for transferring real estate ownership. Official registration is a complicated bureaucratic process. By law, the real estate property must be registered within 1 year. Otherwise, the registration will be prolonged for 1 year more.

For further information don’t hesitate to contact the Living Red Sea Co. Real Estate Company. We will consult you and provide all the information on any of your questions.