Steps to Safely Buy an Apartment in Egypt and Ensure Legal Ownership

Buying an apartment in Egypt, especially in areas like Hurghada, can be a smart investment. However, it’s essential to understand the legal procedures and documents required to ensure the property is genuinely yours. Here’s a complete guide to help you navigate the process with confidence:

✅ 1. Verify Ownership and Legal Status

Before signing anything, always start by verifying:

• The official ownership deed (registered title deed).
• The building permit and the name of the permit holder.
• The existence of utility meters (electricity, water).
• That the seller is the rightful owner and has the authority to sell.

📝 2. Drafting the Preliminary Sale Agreement

Once you’ve verified the property, sign a preliminary sale contract (also called an “initial contract”) with the seller. This outlines the sale terms and conditions. Ensure all data is accurate, especially:

• Full names and national IDs of both buyer and seller.
• Property type, exact surface area, and complete address.
• Full sale price and payment terms.
• A clear description of how the seller acquired the property (with a chain of ownership documents).
• Any court rulings related to the property (like inheritance judgments if inherited).

🏛️ 3. Legalizing the Sale – Notarization & Registration

To ensure full legal protection, follow these steps:

1. Power of Attorney: Have the seller sign a notarized power of attorney allowing you to register the apartment.
2. Real Estate Registration (Shahr Aqaari): Submit a registration request at the local office where the property is located.
3. Provide the following documents:
   • The property’s original title deed.
   • The preliminary sale contract.
   • Tax clearance or valuation certificate (for older properties).
   • Building permit (for newer buildings).

📑 4. Types of Ownership Documents in Egypt

There are mainly two types of documents:

A. Registered Title Deeds

These are the strongest and safest. They are fully registered at the real estate registry. If lost, official copies can be requested.

B. Preliminary Sale Contracts

Common in Egypt, especially when registration hasn’t been finalized. These fall into three categories:

• Contracts with a court ruling for validity and enforcement – close in strength to a registered deed.
• Contracts with only a signature validity ruling – require reviewing the property’s history and prior contracts.
• Informal, unsigned contracts – riskier and require extreme caution and verification.

🚫 Beware of the “Green Contract” Misconception

A common trick in Egypt is claiming the property has a “green contract” – a green-colored paper that looks official but is not a registered deed unless it meets these criteria:

1. Includes official registration number and date.
2. Contains property survey details stamped by the Land Registry.
3. Has an official notarization certificate confirming buyer and seller signed in front of an official.

If these are missing, treat the contract as non-registered and proceed with caution.

📌 Important Clauses in the Sale Contract

Make sure your contract includes:

• Full identification details of both parties.
• Accurate property description and floor location.
• Clear payment details and method.
• Description of previous ownership and documents.
• Boundaries and neighboring units.
• A clause confirming the seller has not sold or pledged the property to others.
• Warranty against hidden legal or structural defects.
• Mention of the building permit number and date.

💡 Final Tips Before You Buy

• Never buy an apartment without visiting it physically.
• Don’t rely on blueprints – always measure the actual unit size.
• Avoid unlicensed floors or units in buildings with permit violations.
• Visit the property during the day and night to evaluate the area’s livability.
• Avoid top floors without elevators unless you’re fully prepared for the challenge.
• Don’t rush the purchase – the best deals come with good research.
• Double-check with local residents and gatekeepers to know real prices.
• Always negotiate directly with the owner, not just the broker.
• Avoid properties without installed electricity meters.
• Make sure you receive a share in the land (especially in new compounds).
• Check that the seller has no debts or legal issues related to the property.

🔒 Summary

Buying an apartment in Egypt can be secure and smooth if you follow the right legal steps. Always consult with professionals, verify all documents, and never rush your decisions. At Living Red Sea, we help both Egyptians and foreign buyers understand the legal process and avoid common pitfalls. Contact us for expert guidance and full legal support.