So you’re still not quite sure how to go about registering your property. We get it. Regardless of how familiar you are with the labyrinth of Egyptian bureaucracy, the process of real estate registry can be daunting, and there’s no shortage of people who have avoided it altogether due to its tediousness, bureaucracy, and most importantly, historic lack of clarity. With the help of Hesham Foda, managing partner at law firm Foda and Associates, we break down the steps in a simple way and without legalese to demystify this essential process to avoid any penalties from the government or to prevent illegitimate claims to your property.

WHAT THE LAW SAYS- Last year, the government issued amendments to the Real Estate Registry Act (pdf) in a bid to encourage ]property owners to register their real estate assets by streamlining the process and digitizing what they can from it. The amended law also introduced a new system of establishing actual possession of the property.

HOW? For example, if you are in possession of an apartment for more than five years, have a utility bill in your name, and have a zoning certificate, you will apply at the real estate registry (shahr el aqari) under the “proving actual existence” process.

The registry will give you a queue number, and they will visit the property. Expect them to speak to your neighbors and the porter asking them direct questions about who has lived in the property, how long have they been there, and if anyone else claimed this property in the past.

HEED THE FOLLOWING- Squatters can establish claims to the property that has been abandoned and settle there for a few years to exercise possession, warns Foda. The change of electricity meters to smart meters made this crime easier: The illegitimate claimants used this as a chance to change the meter into their name to claim the right of possession when the government was rallying up the public to replace their electricity meters. Some have even managed to make valid claims to properties through false contracts.

THE DURATION- Ideally 37 days, according to Foda. He explains that this is the turnaround time that the government promises to complete registering a property after you have completed all your pre-requisite paperwork and gone through the motions.

ATTENTION: FOR NON-EGYPTIANS- You can still only own two properties. The government announced they will be easing up limitations on foreign property ownership to raise FX. However, the shape and form of such easing is yet to be seen, Foda adds.

SECURITY CLEARANCE IS NEEDED- In addition to the registration process, expats will be subject to a security inquiry at the request of the real estate registry. The notary will then contact four different security apparati, and when they receive the “no objection” from each apparatus, then the registration process can begin.

TIMELINE- Expats can be cleared starting from 60 days to one year, on a case-to-case basis.
THE TAX MAN COMETH- Just know that once you are in the system the Real Estate Tax Authority will be knocking on your door for you to pay your annual property tax.

HOWEVER- If you prove that this is your current primary residence, then you are exempt from the taxes, with limits.

NOT FOR SECONDARY HOMES- Whether in Cairo, Alexandria, North Coast, Hurghada, etc, these are taxed.

WANT TO SELL YOUR PROPERTY? Whether it’s a primary residence or secondary home, they will be asking for the property sales tax (2.5%) once you sell it.

THE PAPERWORK-

#1a- PROOF OF OWNERSHIP- Initial contract, or the finally registered contract from the previous owner (the blue contract), and any unregistered contracts in between.

#2a- Does your property predate 1992? You need to prove it. This is done through a document that comes from the Real Estate Tax Authority indicating possession in the last nationwide sweep they did in 1992.

#2b- POST-1992? You need your property’s building permit, which should be in the name of the contractor. You should receive this from the municipality. However, if you live inside a residential compound, you can request it from the New Urban Communities Authority (NUCA) or your developer.

#3- THE UTILITY BILL with the owner’s name on it with the documentation listed above.
#4- PROPERTY SURVEY- The Planning Ministry’s tech center for surveying properties website is the first step. To begin the process you will register on their website (or call their hotline) and provide your mobile number, to which they will send an SMS within 48-72 hours. From it you’ll know when the zoning officer will be making his visit to your property to measure its dimensions and details (PS: They’ll need access to the roof of your property).

The ministry’s tech center for surveying properties is punctual. After they take the measurements of the property they will have the A3-size zoning certificate ready and sent to you in 6-7 days by an officer from the authority.

The certificate is…impressive. It has a precise bird’s eye view of your property using Google maps, your property is outlined with a clear highlight on the image, GPS coordinates are listed, and minute measurements are described on a technical drawing.

#5- Building violations and settling with the government. Check and have proof that your properties are not in violation of the building code or that you have previously settled.

#6- THE TAXMAN, AGAIN- Present any receipts for paid overdue property sales tax (if you bought this property after 2016 and you are trying to register it) and all overdue annual property tax (rolling since mid-2013).

THINGS YOU’LL NEED TO CONSIDER-
Each type of ownership has a different form, and each form has a different process.

  • IF YOUR PROPERTY IS A TRADITIONAL / DOWNTOWN PROPERTY- Aside from the zoning certificate, you will also need a deed of title, or the last contract of ownership of the property itself, to present to the registry.
  • A SECOND GENERATION OWNER MUST HAVE THAT PRIMARY CONTRACT, aswell as the statement of inheritors — “e’lam el weraasa” — that indicates all the inheritors of the deceased. If your parents had a blue contract (that indicates full registered ownership of the property) then you’re halfway there. All you will need to do is to submit the statement of inheritors and the registered contract will be issued in all the inheritors’ names in 37 days after completing the application successfully.
  • ANY GAPS IN PROVENANCE WILL REQUIRE YOU TO FILE FOR A SALE VALIDATION CASE- Unfortunately the above only applies if you have a complete chain of title from the last registered deed. Otherwise, you will have to file a lawsuit and the judge will have to determine that all sales leading up to yours are kosher.

THE PROCESS-

#1- A visit to the registry. It’s important to note that the ones in the sports clubs, social clubs, and malls are not the ones to use when registering your property (sorry). If you are trying to register a property with a developer in Cairo or outside of the capital, such as the North Coast, etc, you have to check with the developer.

#2- Receive the stamp of approval to register the contract.

#3- Stamp from the Lawyers’ Syndicate. This stamp is the ratification for this contract from the bar association. By rule of law, any document that is going to be used on an official basis has to be ratified by the syndicate. This applies to selling land, buying land, or registering a company.

This amount is pegged at 1% of the value of the property and it is capped at EGP 25k. If, for instance, a property’s value is above EGP 2 mn, then EGP 25 k will be paid to the lawyer’s syndicate.

#4- Go back to the registry for their ratification. This step requires fees as well. The upside is that in 10 days you will have a draft of the blue contract.

#5a- If you just bought this property from someone, the seller needs to be present as well with you to sign the contract, unless you have a power of attorney (tawkeel) from them to sell and register the property to yourself or to others.

#5b- Buying property from someone in a compound? The developer will issue a new contract in your name to you.

Since you already established contact with the developer, the next steps become a little easier. It is assumed that most developers have registered their developments and they would have a zoning certificate ratified with NUCA for the entire property. Therefore, they can quickly match their certificate with your Zoning Certificate to simplify the procedure.

#7- We say “Mabrook.”

EXPECT TO FORK UP BETWEEN EGP 30K TO EGP 50K, FOR THE ENTIRE PROCESS.

  • The property survey process is between EGP 2-5k.
  • The real estate registry is EGP 5k to 9k.
  • Approximately EGP 1k for the blue contract: Each page costs EGP 150, plus a flat rate subscription of EGP 110.
  • The ratification from the Lawyer’s Syndicate, which is capped at EGP 25k.
  • There is an application fee which varies depending on the surface area of the property as everything is done by multipliers of square meters. The official at the authority simply plugs in the data from the zoning report and the value is reached, no negotiation.
  • Last but not least, the lawyer’s fees — if you hired one.
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