Registering property in Egypt

[Zeiad Yehia]

Originally Posted by Peter Mitry

We seem to have differing views here from Zeiad and from Alison & Andy who are agents in Hurghada. Does the system differ between registration of freehold properties in Sharm & Hurghada?

In Sahl Hasheesh the land was purchased by the Egyptian Resort Company and a town planning consultant from the UK was brought in to draw up the Master Plan. Every plot was then sold and plans were then submitted to the ERC and then to the local council for approval. There is then a system of checking to ensure building is in line with the consent given. The final receipt for the property is then registered with the local authority and Notarised at a cost of around 250k sterling (2500 Egyptian).

This seems to be a good workaround in the absence of a formal registration authority; what do others think of this?

Hi Peter, this is right, since Sahl Hashesh lies out of the geographical zone of the prime minister's degree, and consequently adhere to the normal registration process, after fulfilling the governorate requirements which differ from a governorate to another, but eventually, you CAN register your property there.

[mark 123]

this is a really interesting set of threads. registering or ensuring ownership is clearly a major barrier for us to overcome if we are to invest in Egypt. It was certainly one of my 'showstopper' issues to address. I have spent some time with my solicitor on this subject and am now much clearer, and feel certain we have adopted the most appropriate course of action for buying in Hurghada. We bought at Regency Towers with Property Hotspots who were great and have developed a very clear contract model that reduces the pain and makes the whole process more comfortable for risk adverse and detail minded buyers like me! Our solicitor is Philip Morris of Legal Alliances Worldwide (LAW) Limited. He is well known for his earlier work in Morroco and is fast becoming the firm to go to for straightforward and cost effective legal advice inEgypt too. I thoroughly recommend LAW Limited based on my recent dealings with him - his details are:

PSG Morris
Solicitor & Managing Director

Legal Alliances Worldwide Limited
Beech House
2 Whinchat Grove
Kidderminster
Worcestershire
DY10 4TJ
UNITED KINGDOM

T - (+44) 01562 861989
F - (+44) 01562 864141

[Zeiad Yehia]

Dear Mr. Mark,

With all my respect to your post and to Mr. Morris, but you still need a local lawyer who is licensed in the Lawyers Bar of Egypt to act on your behalf in Egyptian courts, since any foreigner lawyer "however good he / she was" wouldn't be acceptable to represent you against Egyptian courts.

[mark 123]

Hi Zeiad
thanks for your feedback - yes you are correct about needing access to a local lawyer. Mr Morris has one that he works with and it is a real benefit for us in the UK because he can pass power of attourney over to the local lawyer at the appropriate time, and save us the challenge of seeking embassy approvals etc. Look him up I guess you could work well together too!

[dave99]

Hi
This does not look convincing. It would seem to imply that no developer can ever sell anything for 5 years since he will have registered the land then built on it making him the owner who then sells the apartments "second-hand" to a new owner who then tries to register, who then presumably cannot re-sell for 5 years. All this being said how can anyone ever sell by "flipping" presumably this because all they are selling is an option to buy not really buying anythning.

[dave99]

Can someone please identify the specfic law that prohibits sale of property for 5 years if the property is registered. Does this apply to every sale, ie the 2nd owner has to wait another 5 years and so on.
If this is true then this must have a dramatic affect on the re-sale market, or is this the prime reason that there is NO resale market in Hurghada.

[dave99]

Originally Posted by alison9071

hi jennian
it is not to difficult to register your property in egypt but you do need to be sure that you have all the relevant information i am working on putting a document together at the moment an easy step by step guide i am doing this withan international lawer based in the uk and with an egyptian lawer please send me your email and when it is ready i will gladly send you a copy but who ever you are buying from should know the basics regards selling your property after 5 years this depends on how you register it so not neccessarly so but i will be in touch thank you alison

Any idea when your guide will be ready - any chance of a copy please.

[dave99]

Originally Posted by Peter Mitry

Alison's comments are spot on. I work with Resort Alliance, the promoters of Sahl Hasheesh. Here the Developers have a master plan showing proof of ownership of the entire 32 million m2; each plot has been mapped and given a number and each Developer purchasing land has to submit a project for approval, first to the Egyptian Resort Company who own the land and subsequently to the local authority for planning approval.

Once this is granted there is a system of inspection and a final check that everything has been built according to plan. At this point the Developer will go with the purchaser to the Notary in Hurghada and register the purchase. The cost of this is around 350 GBP.

This is a workaround as Egypt does not have a formal land registry system at the moment.

Peter
In this note you have stated that the land is owned by the Egyptian Resort Company, does this mean that anyone purchasing in Sahl Hasheesh is buying leashold since you do not explain how the title to the land is passed on to the purchaser. I was assuming that each development site would be bought by the developer, then each apartment owner would buy what in effect is a "shared Freehold", from the developer.

[Peter Mitry]

Because the ERC is never going to be the final purchaser they do not register the land. They of course have receipts for the purchase and they know the history of the ownership (the land was owned by the government). ERC then sell the land in plots to the Developers, who equally understand that there are unlikely to be any title issues, so again, their purchase is not registered.
The first actual registration of the finished property will by the owner of each property and the title will be freehold. I hope this explains the procedure in Sahl Hasheesh. It may not be so clear cut if land is being purchased from individuals rather than from the government.

[Zeiad Yehia]

Originally Posted by dave99

Can someone please identify the specfic law that prohibits sale of property for 5 years if the property is registered. Does this apply to every sale, ie the 2nd owner has to wait another 5 years and so on.
If this is true then this must have a dramatic affect on the re-sale market, or is this the prime reason that there is NO resale market in Hurghada.

Law No. 230 of 1996
On July 14, Law No. 230 of 1996 was issued superseding Law No. 56 of 1988. The new law allows non-Egyptians to own real estate whether built or vacant with the following conditions:
1. That ownership be limited to only two real estate properties throughout Egypt for accommodation purposes of the person and his family (family meaning spouses and minors), in addition to the right to own real estate needed for activities licensed by the Egyptian Government.
2. That the area of each real estate not be in excess of four thousand square meters.
3. That the real estate is not a historical site.
Exemption from first and second conditions is subject to the approval of the Prime Minister. Ownership in tourist areas and new communities is subject to conditions established by the Cabinet of Ministers.
Furthermore, non-Egyptians owning vacant real estate in Egypt must build within a period of five years from the date their ownership is effective (the date on which the realty is recorded at the competent Notary Public Office). Non-Egyptians may only sell their real estate five years after registration of ownership, unless the consent of the Prime Minister is obtained.

Answering your question: Yes it applies to EVERY sale as long as non-Egyptians are involved.