Specific Steps in buying property

Specific Steps in buying property in Egypt

The execution of a private sale and purchase agreement between the vendor and the purchaser is the first step in the conveyancing process. It is highly recommended that a comprehensive bilingual (Arabic/English) sale and purchase agreement is produced and/or reviewed by the purchaser’s lawyers in order to ensure that no contractual exposure persists.

Registration of the title deed with the Land Registry completes the property transfer protecting the purchaser from potential claims from Third Parties.

There are two courses of action to undertake the registration of property: via notary or via court.

Registration of the property through the Notary

This is the most common method used for properties initially registered by the vendors, it takes between 6 to 2 years in some cases to complete and the cost of registration including the notary fees is between 1-2 % of the purchase price.

Registration of the Property by Decision of the Court

This method takes longer and is also more costly (7.5% of the purchase price). It is an action taken through the court against the vendor requesting confirmation of the validity of the sale.

The “Signature Validity” Procedure

Once your property is registered you are unable to resell the property within the first 5 years. In order to avoid this 5 year restriction and the cost of registration, it is the custom in Sharm El Sheikh and in Hurghada to use the “signature validity” procedure. It is a precautionary legal way to protect purchasers’ rights against the vendor but it does not give the legal protection that a title deed registered at the Land Registry would have given. The signature validity is, the main legal procedure used in Sharm El Sheikh to protect foreigners’ rights, since ownership is not granted to Foreigners in the Sinai Peninsula and takes between 6 to 8 months before obtaining the court verdict.

The registration of your title deed is subject for the seller to register the land, where your property will be built, under his name. This should occur after completion of the project. As the registration process is a long and complicated process, it is not always possible to proceed with registration. Therefore, it is recommended to proceed with the “signature validity” of the contract before starting the registration process to safeguard your interests on the property.

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