GIP4U understand and care about your buying needs. GIP4U will be with you through every step to ensure a smooth purchase through their comprehensive and competitive services. GIP4U can help you achieve your Investment of a Lifetime in Egypt.
Properties in Egypt can be bought at any stage of development
- Off-plan.
- Under construction.
- Near to delivery.
- Complete and ready to use.
- GIP4U will advise you on the best option depending on your exact needs and budget. Whichever type of property you purchase the process will be the same.
- GIP4U will discuss with you requirements and agree a ‘brief’ for your needs e.g. 02-bed with pool and sea-view, studio off plan...etc.
- GIP4U will complete your registration details and communicate with property developers in Egypt to find suitable properties.
- GIP4U will create a property shortlist for you with details of each property you may wish to view
- GIP4U will arrange viewing to each property during your visit.
- GIP4U will help you obtain a visa which you will need if you decide to open a bank account in Egypt.
- GIP4U will assist in opening a bank account with any currency you wish.
- GIP4U legal department will help you in all process or we can assist you, hiring an independent lawyer and obtaining power of attorney which will all be needed to complete your purchase and authenticate your contract in the Egyptian courts..
In the unlikely event that you do not find a suitable property on the short list, or the property you choose then becomes unavailable, GIP4U will continue the property search and supply further short lists until a suitable property is identified, for up to a maximum of a 4 months period from the original registration date.
Buying your Property
Once you have found your dream home in the sun, you are a few simple steps from owning your property. The process for non-Egyptians is;
- Transfer the deposit to the developer directly, to obtain your purchase contract.
- Transfer the deposit and any fees to GIP Bank accounts in either UK or Egypt.
- Sign the contract which will be sent by courier to you and return it to developer or GIP.
- Relax while GIP4U takes care of all legal work and authenticate your contracts to secure your rights.
- Receive your property and make final payments according to the schedule laid out in the contract.
- GIP4U will complete registration of your title to the property.
GIP4U can help at all stages of the buying process;
- Negotiate with sellers and developers on your behalf to achieve the best price for you. If buying a new development or off plan project, prices are determined in advance and there is little room to negotiate. In some cases discounts are made on cash payments (one time payment rather than a few payments over a number of months).
- Introduce you to a professional, bi-lingual Lawyer. GIP4U have a number of professional lawyers that we work closely with for this specific purpose. We are able to assist as we work for the buyer and not the seller.
- Negotiate the payment terms that will best match your requirements and cash flow in balance with the agreed upon delivery date and/or developers policy.
- At all times be working on your behalf to ensure the purchase moves along smoothly even if you are not in the country.
The transfer of title of real estate in Egypt is completed through two distinct phases, namely the execution of a private sale and purchase agreement between the seller and the buyer followed by the registration of title of the purchaser with the Real Estate Department and Notary Public. Foreign nationals are entailed to purchase and own real estate properties in Egypt subject to the restrictions stipulated by the Foreigners Ownership Law (law 230 for the year 1996). Without prejudice to said law, the purchase of real estates in Egypt by foreign nationals follows the same procedural course of action as it is the case for Egyptian nationals. In relation thereto, there are five fundamental steps that should be followed by any prudent purchaser, which are as follows:
Check the registration status of the property and review of title documentation, as outlined above, the transfer of real estate properties is perfected through the registration of property with the relevant authorities. This said it is quite common in Egypt for property owners not to register their title in order to avoid paying the governmental registration fees amounting to 3 % of the value of the property. Hence, the first seminal step to be undertaken when purchasing property in Egypt is to check said registration status. The status of the registration is determined through the review of the title documentation. Further more, a comprehensive review of the title documentation should be undertaken in light of the original title documentation and not through copies, in order to ensure that no fraudulent title documents are provided by sellers.
Check if there are any pledges or mortgages registered on the property. Under Egyptian law, mortgages and pledges are recorded on the property itself and are not affected by the transfer of the title. Hence, quite commonly a person who has just purchased a property can discover that his newly purchased property is pledged to a third party. As such factor represents a serious exposure to your title, it is imperative that you ensure that the property you wish to purchase is clear and free from any third party rights such as mortgages and pledges. This check is undertaken through the review of the Official Pledge Registers at the Notary Public located in the district of the property.
Ensure that all real estate taxes levied on the property are fully paid. Under Egyptian law there exists a real estate tax which is levied on the property itself and not on the owners of the property. The rate of said tax differs as per the location and the standard of the property itself. This tax is not affected or prejudiced by the transfer of the legal owners and hence it is common for a new purchaser to discover- after completion of the property purchase- that he has to pay certain amounts to the Real Estate Tax Authorities. Accordingly, any prudent purchaser should instruct his attorneys to check the status of payment of the said tax prior to purchasing the property.
Drafting of bilingual comprehensive sale and purchase agreement. The execution of private sale and purchase agreement between the seller and the purchaser is the first phase required under Egyptian law to transfer the title. Quite commonly the seller produces an Arabic draft which in many cases is not readable by the expatriate and does not include all the guarantees, representations and protections that a prudent purchaser requires. Hence, it is highly recommendable that a comprehensive bilingual 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 purchaser's title, the registration of the title is the second phase required under the Egyptian
law to transfer the title from the seller to the purchaser. As a matter of fact, the execution of the sale and
purchase agreement creates- from a purely legal perspective- legal and valid obligations between the seller and
the purchaser but does not create any rights vis-à-vis third parties and the relevant authorities. In other words,
the sale and the purchaser agreement can be used to counter any claims by the seller of the property but does not
safeguard the purchaser from potential claims from third parties or the governmental authorities. The registration
of the property is the procedure designated to safeguard the purchaser from the claims from third parties and
governmental authorities. There are two courses of action to undertake the registration of property which differ
as per the initial registration status of the property. The two courses of action can be seen as follows:
- Registration of the property through the Real Estate Department and the Notary Public.
This mechanism is commonly used in the connection with the registration of title for properties which were
initially registered by the sellers. The timeframe associated with said procedures differs as per the status
of the completeness of the registration documentation but in all cases would remain in the range of three to
six months. When agreeing with the seller on the purchase price, the three percent registration fee should be
taken into consideration; as such rate is calculated on the stipulated price of the property. We strongly advise
against an illusionary smaller price on the contract to attempt to decrease the registration amount as such
action creates a substantial future exposure on the purchaser.
- Registration of the property through the courts, the second course of action
available to register a property is a court action against the seller of the property requesting the court to
issue court ruling confirming the validity of the sale of the property and claming the purchaser as the
legitimate owner of the property. The name of such court action is “claim requesting confirmation of the
validity of the sale”. This course of action may take six to nine months as per the level of cooperation
that the purchaser receives from the seller. This course of action is used primarily to register properties
located in the new urban communities and Sinai.
Conclusion
Based on the above, we urge all expatriates who wish to purchase a property in Egypt to follow the five steps outlined above in order to safeguard themselves from various potential problems or obstacles which may prejudice their title or their quiet and peaceful enjoyment of their newly purchased property.
GIP4U accept no liability in regard to condition or any other related matter, in connection with any property introduced through a GIP4U enquiry or contract. Such responsibility remains between the purchaser and seller throughout the normal legal process.
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