{"id":563655,"date":"2021-07-12T04:00:17","date_gmt":"2021-07-12T04:00:17","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/12\/real-estate-sector-faces-sweeping-new-regulations\/"},"modified":"2021-07-12T04:00:17","modified_gmt":"2021-07-12T04:00:17","slug":"real-estate-sector-faces-sweeping-new-regulations","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/12\/real-estate-sector-faces-sweeping-new-regulations\/","title":{"rendered":"Real estate sector faces sweeping new regulations"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-04\"><\/a> <strong>A bill that would enact sweeping regulatory changes to the real estate sector is back f<\/strong><strong>rom the dead:<\/strong> The House Housing Committee has finished reviewing a bill that would introduce new regulations on real estate companies designed to mitigate sector-related risks, said Tarek Shoukry, deputy chair of the committee and head of the Federation of Egyptian Chambers of Commerce\u2019s real estate division, in a <a href=\"https:\/\/ent.news\/2021\/7\/Real-estate-bill.pdf\">statement (pdf)<\/a> yesterday.<\/p>\n<p><strong>We haven\u2019t heard anything about this for 2.5 years<\/strong>: The Housing Committee <a href=\"https:\/\/enterprise.press\/stories\/2019\/01\/21\/house-committee-to-approve-draft-law-to-regulate-real-estate-development\/\">first green-lit the bill<\/a> back in 2019 but disappeared into legislative limbo immediately after.<\/p>\n<p><strong>So what would the new incarnation of the legislation do?<\/strong> The bill would <a href=\"https:\/\/bit.ly\/3wtazik\">create a state-backed real estate federation<\/a>, that would be in charge of issuing licenses, monitoring companies\u2019 performances, <a href=\"https:\/\/www.shorouknews.com\/news\/view.aspx?cdate=10072021&id=41126879-ee7a-4182-ad27-4083a285265f\">hand out fines<\/a>, and manage company-client disputes<\/p>\n<p><strong>Mitigating risk:<\/strong> Real estate developers would be divided into seven categories based on their solvency, and land would be distributed based on companies\u2019 finances, their technical expertise and business history. This would help prevent projects from being delayed and companies from entering financial difficulties.<\/p>\n<p><strong>Consumer protection:<\/strong> Companies would face fines <a href=\"https:\/\/www.shorouknews.com\/news\/view.aspx?cdate=10072021&id=41126879-ee7a-4182-ad27-4083a285265f\">ranging from EGP 10k to EGP 10 mn<\/a> should they breach contracts with their clients or miss delivery dates. The original bill approved back in 2019 contained a provision that would fine unlicensed developers to <a href=\"https:\/\/enterprise.press\/stories\/2019\/01\/21\/house-committee-to-approve-draft-law-to-regulate-real-estate-development\/\">fines of up to EGP 1 mn<\/a>, though it is unclear whether this remains in the latest iteration of the legislation.<\/p>\n<p><strong>What happens now?<\/strong> The bill has been passed to unspecified ministries for review, Shoukry said, without providing further information.<\/p>\n<p><strong>IN OTHER LEGISLATION NEWS<\/strong>- <strong>Lawmakers have given preliminary approval to amendments to the penal code to <\/strong><strong>introduce tougher penalties for [redacted] harassment<\/strong> that would see offenders handed long prison sentences, <a href=\"https:\/\/www.almasryalyoum.com\/news\/details\/2376797\">Al Masry Al Youm<\/a> reports. Under the amendments, offenders would be handed between two and four years in prison and fines worth EGP 100k-200k. Individuals who track the victim could see their punishment increased to <a href=\"https:\/\/gate.ahram.org.eg\/News\/2863064.aspx\">three-five years<\/a> in prison and a EGP 200k-300k fine, and penalties may be doubled in case of repeated offence. Jail terms may be extended to a minimum seven years under certain circumstances.<\/p>\n<p><strong>The status quo:<\/strong> Currently, the maximum penalty for [redacted] harassment is a one-year jail sentence and a fine of up to EGP 10k.<\/p>\n<p><strong>What\u2019s next?<\/strong> The bill has been passed to the State Council for review before it heads back to the House for a final vote. The draft bill was <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a4ce10fd-bb8b-4880-88e1-bf5fc37c5d6c\">approved<\/a>by the House Legislative Committee in late June.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A bill that would enact sweeping regulatory changes to the real estate sector is back from the dead: The House Housing Committee has finished reviewing a bill that would introduce new regulations on real estate companies designed to mitigate sector-related risks, said Tarek Shoukry, deputy chair of the committee and head of the Federation of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":563656,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7344],"tags":[72,274,187,3085,83,343],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-563655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislation-watch","tag-enterpriseam","tag-house-of-representatives","tag-legislation-watch","tag-penal-code","tag-real-estate","tag-regulation","wpautop","entry"],"acf":{"mongo_id":"a14cf09e-0dc4-47de-8b20-3873c77ed08b","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/7\/171.jpg","photo_position":"above","related_issue":[563645],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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The two-year freeze is meant to allow time for public consultations on the legislation and the introduction of an alternative to the\u2026","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/3\/60.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":543839,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/21\/real-estate-brokers-could-face-tighter-regulation-under-new-bill\/","url_meta":{"origin":563655,"position":1},"title":"Real estate brokers could face tighter regulation under new bill","author":"enterpriseam admin","date":"21 February 2022","format":false,"excerpt":"The next time you move, it could be through a registered simsar \u2014 with set fees: The House of Representatives\u2019 Economic Affairs Committee has given preliminary approval to amendments to the law regulating real estate brokerage, Al Mal reports. The changes would set up a registry for licensed brokers and\u2026","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/2\/295.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":594923,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/11\/madbouly-industry-figures-review-draft-law-to-regulate-real-estate-developers-in-egypt\/","url_meta":{"origin":563655,"position":2},"title":"Madbouly, industry figures review draft law to regulate real estate developers in Egypt","author":"enterpriseam admin","date":"11 September 2019","format":false,"excerpt":"LEGISLATION WATCH- Cabinet, industry figures review draft law to regulate real estate developers: Prime Minister Moustafa Madbouly, Housing Minister Assem El Gazzar, and representatives from the real estate industry met yesterday to review a draft bill that would regulate developers and the industry, according to a Cabinet statement. No details\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":557532,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/09\/22\/real-estate-firms-could-soon-face-closer-regulatory-scrutiny\/","url_meta":{"origin":563655,"position":3},"title":"Real estate firms could soon face closer regulatory scrutiny","author":"enterpriseam admin","date":"22 September 2021","format":false,"excerpt":"Real estate companies could face closer regulatory scrutiny under proposals designed to mitigate risk in the sector, a senior Housing Ministry official suggested in remarks to reporters on the sidelines of the Cityscape industry conference in Cairo.What\u2019s the proposal? Vice Minister for Housing Khaled Abbas said the measures could see\u2026","rel":"","context":"In &quot;Real estate&quot;","block_context":{"text":"Real estate","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/real-estate\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/9\/309.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":600145,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/01\/21\/house-committee-to-approve-draft-law-to-regulate-real-estate-development\/","url_meta":{"origin":563655,"position":4},"title":"House committee to approve draft law to regulate real estate development","author":"enterpriseam admin","date":"21 January 2019","format":false,"excerpt":"LEGISLATION WATCH- Housing Committee planning sweeping regulatory changes for real estate industry: The House of Representatives\u2019 Housing Committeewill approve in one month\u2019s time a law to establish a federation for real estate developers and set up a fund to hedge against sector-related risks, committee Secretary Mohamed Ismail told Al Shorouk.\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":569426,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/24\/real-estate-registry-act-receives-committee-level-nod-from-egypts-house\/","url_meta":{"origin":563655,"position":5},"title":"Real Estate Registry Act receives committee-level nod from Egypt\u2019s House","author":"enterpriseam admin","date":"24 February 2020","format":false,"excerpt":"LEGISLATION WATCH- Real Estate Registry Act receives nod from House committee: The House Legislative Committee has greenlit amendments to the Real Estate Registry Act that would speed up procedures for citizens to register properties by setting a time limit and simplifying the registration process, reports Masrway. The House has been\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=563655"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563655\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/563645"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/563656"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=563655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=563655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=563655"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=563655"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=563655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}