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Old 16-12-2007, 06:53 AM
mtdd mtdd is offline
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Join Date: Dec 2007
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One needs to read between the lines of Dave's post, I don't believe he is so naive as to mean that he would buy a property without a contract. But in Egypt a land contract is a very tricky thing, as a consequence of the parlous state of land registry, and the registration of title. It is incredibly difficult to obtain a statutory confirmation of ownership.

Therefore, if someone tells you he has the right to sell a property, he very well might have - but he has no way of proving it to you in the form of a title deed such as we know it in the UK, for example. Alternatively he might be a crook who has no right of ownership, or he might have right of ownership but still sell the same property several times. Caveat Emptor, indeed.

This having been said, there is a golden rule. Ask the seller if the contract can be registered at the Sharia Akari, which is basically a notary public, and the closest thing there is to a land registry. IF he offers you his own purchase contract as evidence of title, ask him to register it at Sharia Akari himself before you even negotiate with him. Once registered, you have far greater legal protection, specially if you go ahead and register your subsequent contract also.

Sellers, particularly private sellers, have historically resisted registration, because of the associated high fees (historically 6% or more). There is however no excuse for a corporate seller not to be able to show you registration of contract. And in the case of corporate AND private sellers, the registration fee has been slashed to almost nothing in recent times: so there is no excuse there either.

Where private sellers are concerned, you will find a massive number of sellers are operating on a "tawkil" or power of attorney from the real owner - or maybe it isn't the real owner. You can never know. Or maybe the tawkil is old and has been revoked, how would you know?

Inheritance is a curse in Egypt. As a consequence virtually all inheritances, particularly of land, are in some way or another contested. You can buy in good faith from someone who believes in good faith that they own the asset - but then a court judgment 10 year down the road can vitiate the entire transaction - or at the very least make your life a misery.

The answer to all this is the Sharia Akari. These offices are chaotic places, and their filing systems consist of piles of ledgers on the floor. BUT - they do exist to protect your rights, and generally speaking they are quite stern in their execution of that task. You WILL need a "Mr Fix-it" to guide you through the process, but the few hundred EGP he will cost you, might save you hundreds of thousands.

I am an Englishman who has been living in Egypt for 16 years, and I have bought three properties so far, including a parcel of land on which I have constructed from scratch. The experience has been painful at times, but by following the guidelines I have given, I am extremely comfortable and secure in my evidence of title.
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