# Buying a property in Egypt



## hhaddad

Once you have decided on a property you will be required to pay a holding deposit of ten per cent. Before you hand over any money however, it is imperative that you follow the following five basic steps. 
1/ You must get your solicitor to check the registration status of the property – a drawn-out process of around four months, which is executed by examining the title deeds. Despite registration being a legal requirement, only ten per cent of Egyptian homes fulfill this requirement, so if you are buying a resale home it is best to be prepared for bad news at this stage. 
2/Your lawyer will need to ascertain whether there are any outstanding debts registered against the property. If there are, again, it is best to simply walk away. 

3/This step is to ensure that all real estate taxes levied against the property are fully paid and up to date. 
4/Read very carefully and sign the sales contract. Be aware that this contract is not legally binding unless it is bilingual. 
5/ You must register the purchase through the courts – a process which costs around £500.


Legal issues
As mentioned above, obtaining a property that has clean title can be difficult. In the past, many property transactions simply took place between the buyer and the local landowner – without the necessary paperwork to determine who the new owner was. Thousands of other properties were handed down from generation to generation meaning that, in some instances, around ten members of one family could stake a claim in the property’s title. In order for the sale of such a property to take place all ten members must therefore agree. In addition, the registration process was expensive, resulting in many transactions taking place under the table. This cost has recently been reduced, however, from 12 to three per cent so buying a fully registered home should get easier as time goes on. 

You will also need to establish whether your property is freehold or leasehold. For the majority of new-builds in resort developments it is likely that they will be leasehold, with a 99-year lease. Some older resorts may only offer 50-year leases however.

Be aware that real estate agents are not regulated in Egypt therefore it is recommended to use only the big internationals although they are mostly franchises you have always the parent company to complain to if you can't get what you want from here.


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## Veronica

hhaddad said:


> Once you have decided on a property you will be required to pay a holding deposit of ten per cent. Before you hand over any money however, it is imperative that you follow the following five basic steps.
> 1/ You must get your solicitor to check the registration status of the property – a drawn-out process of around four months, which is executed by examining the title deeds. Despite registration being a legal requirement, only ten per cent of Egyptian homes fulfill this requirement, so if you are buying a resale home it is best to be prepared for bad news at this stage.
> 2/Your lawyer will need to ascertain whether there are any outstanding debts registered against the property. If there are, again, it is best to simply walk away.
> 
> 3/This step is to ensure that all real estate taxes levied against the property are fully paid and up to date.
> 4/Read very carefully and sign the sales contract. Be aware that this contract is not legally binding unless it is bilingual.
> 5/ You must register the purchase through the courts – a process which costs around £500.
> 
> 
> Legal issues
> As mentioned above, obtaining a property that has clean title can be difficult. In the past, many property transactions simply took place between the buyer and the local landowner – without the necessary paperwork to determine who the new owner was. Thousands of other properties were handed down from generation to generation meaning that, in some instances, around ten members of one family could stake a claim in the property’s title. In order for the sale of such a property to take place all ten members must therefore agree. In addition, the registration process was expensive, resulting in many transactions taking place under the table. This cost has recently been reduced, however, from 12 to three per cent so buying a fully registered home should get easier as time goes on.
> 
> You will also need to establish whether your property is freehold or leasehold. For the majority of new-builds in resort developments it is likely that they will be leasehold, with a 99-year lease. Some older resorts may only offer 50-year leases however.
> 
> Be aware that real estate agents are not regulated in Egypt therefore it is recommended to use only the big internationals although they are mostly franchises you have always the parent company to complain to if you can't get what you want from here.


It is the big internationals who have gone into places like Spain and here in Cyprus, ripped people off left right and center and then gone elsewhere once the cash cows dried up.


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## PoleDancer

Veronica said:


> It is the big internationals who have gone into places like Spain and here in Cyprus, ripped people off left right and center and then gone elsewhere once the cash cows dried up.


Interesting. I'm curious. Could you explain (or give some examples of) how these companies have "ripped people off left right and center"?


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## Veronica

PoleDancer said:


> Interesting. I'm curious. Could you explain (or give some examples of) how these companies have "ripped people off left right and center"?


Without naming any companies, the big boys came here and demanded 15% commission from the developers (and got it). This made property far more expensive than it needed to be. They then get people over on viewing trips, use hard sell tactics to sell people properties which were completely wrong for their needs by telling them all sorts of lies. If the client didnt buy they then took 2K off their credit card to cover the cost of the viewing trip which would not have cost anything like that. So the cheap viewing trips turned into very expensive trips.
One company not only usedthese tactics but also when they sold a property they coerced the buyers into buying furniture packs from them. Again these furniture packs were far more expensive than they should have been often double the real cost. They then took off from this island with a lot of peoples furniture pack payments so when the people took possession of their properties the funriture packs were not forthcoming as the supplier had not been paid. Many of these people can now not afford to furnish their properties.
I could go on with similar examples.
Then there is the case of Andrew Nolan and Ian Beaumont. You can google them.
Last time Ian Beaumont was heard of he was in Egypt using another name.


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## PoleDancer

Ah, right. Sorry, when you referred to 'big internationals' I thought you were having an (unsubstantiated) dig at global real estate companies. However I think you're referring to the type of dodgy wideboys and scammers who lure gullible purchasers over for hard sell and dubious deals. I certainly agree they are to be avoided. Despicable people.


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## Veronica

PoleDancer said:


> Ah, right. Sorry, when you referred to 'big internationals' I thought you were having an (unsubstantiated) dig at global real estate companies. However I think you're referring to the type of dodgy wideboys and scammers who lure gullible purchasers over for hard sell and dubious deals. I certainly agree they are to be avoided. Despicable people.


Some of these companies are global though not all of them.
I will not name them as it is against forum rules to name and shame.


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## marenostrum

Thanks for the info very useful.
Can I ask if there are any differences with regards to buying a property in Cairo?

Also I would like to know the going rate for a two floor three bedroom house in Maadi with two bathrooms and a garden surrounding the property. Not worried about renovations such as kitchen and bathroom if these are dated.


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## hhaddad

Veronica said:


> Some of these companies are global though not all of them.
> I will not name them as it is against forum rules to name and shame.


When I referred to the big international agents I should have said reputable and I thought that this would be clear.
Those who have experiance in Egypt know that the Egyptian estate agents apart from those who have internet sites are men sitting on a chair on the pavement with a "placard flat for sale".

Also a big rule for buying a property in Egypt is do not buy from a plan nor a promise that it will be built next year.Buy only if you see the finished flat that you are going to buy.neadless to say some flats are sold unfinished and its upto you to take care of interior finishes and electric installation etc.

Do not buy fish in the sea!


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## hhaddad

marenostrum said:


> Thanks for the info very useful.
> Can I ask if there are any differences with regards to buying a property in Cairo?
> 
> Also I would like to know the going rate for a two floor three bedroom house in Maadi with two bathrooms and a garden surrounding the property. Not worried about renovations such as kitchen and bathroom if these are dated.


I don't know of a house in Maadi but I can give you an idea of price a third floor flat of 170 m2 fully finished goes for around 650.000 L.E.

The details about buying property goes for all Egypt


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## Veronica

hhaddad said:


> When I referred to the big international agents I should have said reputable and I thought that this would be clear.
> Those who have experiance in Egypt know that the Egyptian estate agents apart from those who have internet sites are men sitting on a chair on the pavement with a "placard flat for sale".
> 
> Also a big rule for buying a property in Egypt is do not buy from a plan nor a promise that it will be built next year.Buy only if you see the finished flat that you are going to buy.neadless to say some flats are sold unfinished and its upto you to take care of interior finishes and electric installation etc.
> 
> Do not buy fish in the sea!


I like that analogy Do not buy fish in the sea:clap2::clap2::clap2:
The same goes anywhere these days in my opinion. Wherever possible it is better to buy something that is finished so you know exactly what you are getting.


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## marenostrum

hhaddad said:


> I don't know of a house in Maadi but I can give you an idea of price a third floor flat of 170 m2 fully finished goes for around 650.000 L.E.
> 
> The details about buying property goes for all Egypt


Thanks. I already live in a flat and can't see myself staying in a flat for more than a year. I miss having a garden and hate using the lifts here.

I agree with the advice about buying off a plan. Personally I would never do this, I would always go for older properties. You know what you get, a lot of the structural problems don't appear for two or three years, building techniques nowdays are also tailored towards the "quick" build not always preserving quality.
This applies everywhere not just here.


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## hhaddad

marenostrum said:


> Thanks. I already live in a flat and can't see myself staying in a flat for more than a year. I miss having a garden and hate using the lifts here.
> 
> I agree with the advice about buying off a plan. Personally I would never do this, I would always go for older properties. You know what you get, a lot of the structural problems don't appear for two or three years, building techniques nowdays are also tailored towards the "quick" build not always preserving quality.
> This applies everywhere not just here.


Try looking for a ground floor flat in Hadyek El Haram with garden because most villas in the cairo area go for around 1.000.000 + L.E.


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## marenostrum

hhaddad said:


> Try looking for a ground floor flat in Hadyek El Haram with garden because most villas in the cairo area go for around 1.000.000 + L.E.


No more flats for me sorry, no more nosey / noisy neighbours or lifts that work by sticking your finger in a live circuit board.

Also i've fallen in love with maadi, went there yesterday for the first time.
Also gardening here interests me a lot, i want to grow the stuff that grows in malaysia and singapore ie banana plants, bamboos and other tropicals.

I've got six months to look.


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## MaidenScotland

marenostrum said:


> No more flats for me sorry, no more nosey / noisy neighbours or lifts that work by sticking your finger in a live circuit board.
> 
> Also i've fallen in love with maadi, went there yesterday for the first time.
> Also gardening here interests me a lot, i want to grow the stuff that grows in malaysia and singapore ie banana plants, bamboos and other tropicals.
> 
> I've got six months to look.




banana etc all grown here.. no need to look to the tropics


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## marenostrum

MaidenScotland said:


> banana etc all grown here.. no need to look to the tropics


thats good news.
hopefuly pollution does not affect growth too much.


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## hhaddad

Just a note land measurements in Egypt are Feddan = 4.200 sq/m and karat = 1/24 feddan 175sq/m.


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## bat

hhaddad said:


> I don't know of a house in Maadi but I can give you an idea of price a third floor flat of 170 m2 fully finished goes for around 650.000 L.E.
> 
> The details about buying property goes for all Egypt


Maadi villa millions, you pay for the area not for the fixtures and fittings because every body tears down and starts again.
My daughter wants a villa there in the future, all I can say is good luck to her.


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## bat

hhaddad said:


> Try looking for a ground floor flat in Hadyek El Haram with garden because most villas in the cairo area go for around 1.000.000 + L.E.


Apartments now going for million + so villas +++ millions 
Waiting for the crash,


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## bat

Veronica said:


> I like that analogy Do not buy fish in the sea:clap2::clap2::clap2:
> The same goes anywhere these days in my opinion. Wherever possible it is better to buy something that is finished so you know exactly what you are getting.


But then you move in straight away, in case your not the only one whose bought it
When we bought ours the first minute we put a big sign saying our name and tel number and put a padlock on and brought some one to sit out side the door.
Again never looked into how they do it but it still goes on this is to Egyptians not foreigners


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## Veronica

bat said:


> But then you move in straight away, in case your not the only one whose bought it
> When we bought ours the first minute we put a big sign saying our name and tel number and put a padlock on and brought some one to sit out side the door.
> Again never looked into how they do it but it still goes on this is to Egyptians not foreigners


If you buy off plan how do you know the same place isnt being sold to loads of different people.?
I know there was a rogue British agent who did that here in Cyprus. He sold the same places over and over again, nothing ever got built and then he vanished with everyones money.
Last seen in Egypt. Name of Ian Beaumont but hes using another name in Egypt.


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## Veronica

Veronica said:


> If you buy off plan how do you know the same place isnt being sold to loads of different people.?
> I know there was a rogue British agent who did that here in Cyprus. He sold the same places over and over again, nothing ever got built and then he vanished with everyones money.
> Last seen in Egypt. Name of Ian Beaumont but hes using another name in Egypt.


sorry my mistake, last seen in Dubai


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## bat

Veronica said:


> sorry my mistake, last seen in Dubai


Well he may have been here and learnt some tricks, as that is a favorite one, think it must be easy to do as so many Egyptians get caught out by it.


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## Sam

Veronica said:


> If you buy off plan how do you know the same place isnt being sold to loads of different people.?




This is where the lawyer and the need to be buying from a reputable developer comes in to play.

The lawyer must make sure that the transaction is entirely legal, ensure that the developer/land owner is the legitimate owner and has obtained all the necessary permissions. He must also ensure that the first party of the contract is legally permitted to sign that contract and that he is signing in the right capacity.

In almost all cases I know of where a single property has had multiple purchasers, the one who "sold" it to them, i.e. signed the contract, was not actually allowed to do so, and hence they never actually bought the apartment in the first place. HOWEVER, as long as all the legals are right, then if the developer/owner was to legitimately sell the apartment to another individual then it would be a very serious offence and easily pursued in court. The ONLY case I know of where this has happened it was done accidentally and the "first buyer" took ownership of the property, as normal, and the "second buyer" was assigned an alternative but similar property and well compensated, out of court.


**Edit
I just wanted to clarify, that when I say "ONLY case I know of" I mean that I have personally dealt with or heard about. Other cases that I have heard of fall into the illegal category whereby the seller was not legitimately allowed to sell in the first place.


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## Ethicranger

Sam, do you have unfinished property in Egypt at the moment?


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## Helen Ellis

I'm told that apart from registering your new property, you should also get the electric meter in your name, this is as good as proof of ownership.


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## hhaddad

Helen Ellis said:


> I'm told that apart from registering your new property, you should also get the electric meter in your name, this is as good as proof of ownership.


Yes this is very important and also a telephone(landline) and water meter to be on the safeside.


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## isaak223

hi im currently interested in buying off plan property in Egypt hurghada and we are talking to starhill realty does anybody know anything about this company feedback appreciated


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## TheTaxMan

Helen Ellis said:


> I'm told that apart from registering your new property, you should also get the electric meter in your name, this is as good as proof of ownership.


LOL as ridiculous as this sounds it's very true. In fact many locals won't purchase/lease UNLESS the seller has the electric in their name. Also, make sure the electric is paid off because sellers can run a bill that lasts years and now it's your problem. I haven't tested this but I've heard if the electricity is not in use for 3 months then the bill goes away and a buyer can put their name on it free and clear. I suppose it's all a promissory estoppel theory. 

I personally would rather work with the international agents. You'll still run into the same old masri attitude (for better or worse) but it's a little more secure. Now is a very interesting time to buy in Cairo...prices have gone down, rent seems to have gone up and who knows where the economy will go. I say we will know much more in the next 3 years.


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## beachfrontproperty

isaak223 said:


> hi im currently interested in buying off plan property in Egypt hurghada and we are talking to starhill realty does anybody know anything about this company feedback appreciated


I am in the same situation as you, trying to buy off plan from a company I never heard of before, and I thought someone here would know. Well, never mind.
I'll keep an eye, maybe someone will write something that will help me know more.
Good luck with your search. I never heard of starhill realty either, sorry.


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