FAQ, Hurghadians Property

FAQ, Hurghadians Property

FAQ

FAQ, Real estate

1. How can I ensure that I do not lose my money when buying a property abroad?

Investing abroad is always a big step, so it is important to be as well informed as possible. You should be accompanied and advised by trusted local professionals. We at Hurghadians-Property try to make your property purchase as easy and pleasant as possible. Besides our trained staff we only offer properties from trustworthy and reputable construction companies. An important point is that we will introduce you to one or more multilingual lawyers before each purchase.

This is probably the easiest part of the whole process for you when it comes to buying a property abroad. Once you have decided, we at Hurghadians-Property will organize everything for you. All you have to do is tell us when and which projects you want and our team will do the rest.

A professional real estate agent knows the local real estate market well. He is able to determine a realistic purchase price that will suit your property.

This is not an easy decision. After all, your property is at stake and unfortunately there are “black sheep” among real estate agents.

Yes, you can rent out your property yourself. However, if you wish, we are happy to help you with the letting.

Yes, for this you need the contract of sale of your property, passport and a visa. Of course it is part of our service to accompany you in all necessary steps.

There is no limit to the number of residential properties you can own.

Egyptian law has not explicitly stated to whom the property should go in case of death. But, should an owner die, the property is transferred accordingly to the next family member. However, it is important and advisable to seek legal advice in such cases.

Yes, you can buy everything you need here to furnish your new home. We work closely with furniture manufacturers. You will be able to find the right furniture to suit your budget from the wide range of offers.

We are happy to answer all your questions. Please do not hesitate to contact us.

The most important aspect of a real estate property is LOCATION. Whether you want it for vacation or investment, location plays an important role in the buying decision.

In addition to the location, you should also pay attention to the construction history of the developer:

– if it is a local investor or an international fund.

– if he has built other residential or hotel complexes and how they turned out.

– if they were late and if problems arose after.

Problems and delays often occur since the developer is at the beginning of the journey and does not have the necessary funds to support the various situations that arise during construction. Among them are the currency risk, the fluctuating price of construction materials as well as the constant coverage of wages throughout construction.

At the present time, due to the war and economic conditions in the world, the real estate market in Hurghada has seen exponential growth, with prices appreciating day by day. Another important aspect is the fact that the local currency has depreciated against the USD and EUR by -50% in the last year. Otherwise, foreigners have an advantage, buyers being Russians, Ukrainians and Germans looking for vacation homes or real estate investments with a better quality/price ratio.

Our advice is to enter the initial sale-build phase where prices are lower, even by 50%. For example: in the project stage, a 50 sqm studio can be sold for 30,000 euros, 10% down payment (3,000 euros) and installments over 5 years (approx. 500 euros per month). In the next 3 months, the price can increase by 50%, which happened even in our purchases. Of course, this can be a risk that you expose yourself to, as I stated above that there can be delays in work. 

If you don’t have the appetite for this risk, you can opt for a completed purchase with cash payment, or a unit that will be built in 1-2 years, compared to the normal 3-5 years. 

Of course, the faster the delivery, the higher the advance, ranging from 30% to 50%.

The payment of the advance and the installments can be made in cash or by bank transfer, regardless of the amount to the developer’s account or by transfer to the real estate agency’s account.

If you cannot travel to Hurghada (Egypt), the contract can be signed by DHL courier without any problem.

As projects are mostly financed by your installments, if you become unable to pay (30-60-90 days), the contract will be canceled and you will be able to receive back part of the money paid, the percentage being stipulated exactly in the contract of purchase. The property will then be put back on the market and let to a new buyer to continue its construction process.

If you have purchased a real estate property strictly for investment and you do not have time to manage it, you can call on a management company that will take care of all the necessary aspects. Larger complexes usually have this service in their offer. Otherwise, the company will take care of the listing on booking/Airbnb and related sites, cleaning, and maintenance of the property for a pre-set commission of 10 to 20% of the proceeds. This is valid, including for short-term rental (hotel regime) or long-term rental (tenants 6-12 months – where an agency fee can be paid).

In the city of Hurghada, if you purchase real estate, you are the owner for life and you can also give it as an inheritance. In contrast, in Sharm el-Sheikh, another popular area for tourists in the Sinai Peninsula, real estate purchases only benefit from a 99-year concession.

Yes! Any property purchased can be resold without any problem. However, pay attention to the contract, because in most of them it is stipulated that you can resell a property only after paying it in full.

Yes! Based on the first contract, either for full purchase or in installments, you can obtain a local bank account and a resident visa for 1 year, which is renewed.

After the completion and reception of the construction, your purchase contract will have to be registered with the “court”, a kind of tabulation that certifies the fact that you are the rightful owner of that property.

The “green contract” got its name because of the green seals that are applied to the document in the approval process in 7 different organizations.

The green contract is issued by the government authorities of the ARE (Arab Republic of Egypt) on behalf of one or more property owners.

The Green Contract is not a free form document. Its aspect and content are regulated by the Law of the Republic of Egypt, No. 114 of 1964 (Law on the entry into private ownership of real estate property rights).

The green contract is a document that confirms that the real estate specified in it and its current owner are in the Unified State Register of Real Estate in Egypt.

The availability of the Green Contract guarantees the inviolability of a property by the state. The green contract is issued only in two cities in Egypt – Qena and Cairo. That’s why it will take several months to get it. It is standard procedure.

Holding the Green Deal for a property, such as an apartment, is only possible if the developer has the Green Deal for the building in which the property is located or the land on which it is built.

To obtain the Green Contract, it is necessary to complete the construction of the building.

 To go through the procedure of obtaining the Green Contract, the property owner must collect a certain package of documents:

  • The technical passport for your property, which is issued by the technical supervision service in Hurghada.
  • The contract of sale of your property, registered in the court of Hurghada.
  • Your power of attorney and any power of attorney from previous owners of the property.
  • The certificate of registration with the tax authority, as well as the certificate of the market value of the registered property and a tax declaration.
  • Contracts with the city’s energy company and water supplier.
  • Power of attorney for a lawyer authorized to represent the interests of the owner.
  • A copy of a valid passport.

Since the documents must be drawn up in Arabic, it is better to entrust their preparation to a reliable lawyer or law office.

Yes! We collaborate with a reliable local lawyer who loves Romania and knows the Romanian language perfectly.

The Green Contract, or Tazgil in Arabic, is an official document state authorities provide to confirm real estate ownership in Hurghada, Egypt. It can be issued to multiple or individual owners and serves as a legal assertion of property rights before governmental bodies, ensuring the protection of the property from state infringement.

This document is not processed through the courts but through the Sharaa Akari (notary office). To obtain a Green Contract for a property, the land and the building must already possess such a contract. The registration process is notably lengthy, often exceeding a year, and the cost is variable, dependent on the property’s declared value, legal fees, and the specific registration methods the attorney employs. A one-time tax of 2.5% of the sale contract’s stated amount is also payable to the state treasury.

Foreign nationals seeking a Green Contract for a property in Sharaa Akari must furnish the following documents:

  1. Taukil—a power of attorney from the seller to the buyer.
  2. If available, a copy of the existing Green Contract for the land and building.
  3. The sale and purchase agreement is officially recorded in court along with the hokum (court ruling).
  4. A passport with a duly extended visa.

If there is no preexisting Green Contract for the land and building where the property is located, the application for a Green Contract will be denied.

By analogy, registering a sales contract in court (Sahih Taukiya) is akin to acquiring a vehicle through power of attorney, whereas obtaining a Green Contract is comparable to a complete transfer of vehicle ownership.

Tourists can acquire a renewable single-entry visa valid for 30 days upon arrival at Egyptian airports, which costs 25 USD. For those who wish to enter Egypt multiple times, a multiple-entry visa is available for 60 USD. The Egyptian government has established an official e-visa portal, the sole authorized online service for this purpose. While other websites may offer e-visa services, some may charge fees significantly higher than the official rate.

It’s important to note that entry into Egypt is not guaranteed, even with a pre-obtained visa, as immigration officials have sometimes denied entry without providing reasons. Therefore, tourists who have previously encountered issues with their visa status in Egypt or are concerned about obtaining a visa on arrival are advised to secure a visa through an Egyptian embassy or consulate before traveling. Additionally, visas required for work or study must be arranged in advance of arrival in Egypt.

For more detailed information on entry requirements, it is recommended that you contact the nearest Egyptian Embassy or Consulate or consult the Egyptian Ministry of Foreign Affairs website.

Purchasing property in Hurghada, Egypt, involves a structured process that safeguards the interests of foreign buyers. Engaging with officially registered real estate companies in Hurghada is highly recommended to avoid complications. The process is divided into two main stages:

Stage 1: Purchase and Initial Registration

  • contract of sale is created, a flexible document that can include any lawful clauses.
  • The contract can be drafted in a location agreed upon by both parties.
  • The contract can be bilingual for non-Arabic speakers, but only the Arabic portion is legally binding.
  • The contract must detail the transaction and assert the seller’s commitment to provide all necessary documents for property rights registration.
  • Signatures of both parties are required on each page of the contract.

Stage 2: Finalization of Property Documents

  • The seller issues a Taukil (power of attorney) to the buyer, a standardized document prepared at the Sharaa Akari notary office.
  • The Taukil transfers full property rights, allowing for complete disposal and resale.
  • If the property has a utility meter, the seller must re-register it in the buyer’s name or provide a Taukil for the meter’s renewal.
  • The seller must hand over all original property documents, including those from previous owners.
  • The buyer should verify the seller’s clearance of any outstanding utility debts.

Additional Steps for the Buyer:

  • Re-register the electric meter in the buyer’s name at the electric company.
  • Register the contract of sale in court under Sahih Taukia, which confirms the sale but does not serve as a property certificate.
  • Attempt to register a Green Contract at Shari Akakri, which provides additional legal protection.
  • If a Green Contract cannot be obtained, pursue Sahi Va Nafaz through the court as an alternative.

During these final steps, the buyer needs to have a valid visa. The process emphasizes the importance of legal verification and rights transfer, ensuring a secure transaction for foreign investors in Hurghada’s real estate market.

Upon completing the payment for a property in Hurghada, the seller will provide you with a Taukil. This document is an irrevocable power of attorney that confers the right to own and manage the purchased property.

Registering a sale contract in court, known as SAHIH TAUKIA, is a fundamental step in the property acquisition process in Hurghada. This procedure is not just a formality; it’s a critical measure to legalize the transaction and authenticate the signatures involved. Here’s a breakdown of the process and its importance:

  • SAHIH TAUKIA registration occurs at the property’s location and legalizes the sale, confirming the authenticity of the parties’ signatures and the legality of the transaction.
  • The core of the lawsuit is to validate the seller’s acknowledgment of the sale and their signature.
  • The court’s role is not to verify the seller’s right to sell but to confirm the sale’s occurrence and the signatures’ validity.
  • A lawyer’s stamp is not required on the sale contract for court submission—only the parties’ signatures are necessary.
  • If the seller does not appear in court, they are sent up to three notifications to confirm the sale. If they fail to respond, the transaction is registered automatically, safeguarding the buyer’s rights and the legality of the sale at the time of signing the Taukil.
  • The seller’s absence in court does not negatively impact the buyer, as the contract should state that: a) There are no third-party claims on the property. b) The property is not mortgaged or seized. c) The seller privately owns the property without any encumbrances. d) The seller has received the full payment.

The necessity of SAHIH TAUKIA registration lies in its ability to confirm ownership. While a Taukil grants the right to sell, it does not establish ownership. Once registered, the sale contract unequivocally confirms that you have purchased the property and that the seller has acknowledged receiving the payment.

As for the difference between SAHIH TAUKIA and the Green Contract (Akhdar Contract), the former is akin to buying a car through power of attorney—it confirms the sale but not full ownership. The Green Contract, on the other hand, is like obtaining a vehicle with a complete transfer of ownership—it’s a comprehensive document that registers the property in the Unified State Register of Real Estate in Egypt, ensuring state protection of the property1.

Theoretically, one could register a sale contract in court independently if they are proficient in Arabic and have permanent residence in Egypt. However, due to the complexity of the process, it’s often advisable to seek legal assistance.

The real estate profession has a longstanding history, yet opinions on the necessity of realtors remain divided. Some individuals believe they can manage property searches in Egypt on their own. In contrast, others recognize the value of an experienced realtor as a vital ally in navigating the complexities of real estate transactions, particularly in areas like Hurghada, El Gouna, or Sahl Hasheesh.

Realtors are compensated with a commission, typically ranging from 3 to 5% of the property’s sale price, for their expertise and services. Unlike “private agents” who may only offer essential advice or showings, professional realtors are well-versed in the intricacies of the Egyptian real estate market. They prioritize their reputation, engaging only in legitimate transactions and collaborating with reputable developers.

A realtor’s role extends beyond property showings; they handle the intricate aspects of a transaction, from verifying legal documents to facilitating court registrations. By hiring a realtor, clients invest in the agent’s time spent finding the right property and the associated legal and accounting services. This investment secures professional guidance and contributes to realizing one’s dream of owning a seaside home.

For those viewing property acquisition in Hurghada, Sahl Hasheesh, or El Gouna as a strategic investment, the expertise of a trusted real estate firm is indispensable. Accurate market insights, such as property value trends and comparative analyses of residential complexes, are crucial data that seasoned professionals can provide.

While it’s possible for those fluent in Arabic and with legal assistance to independently find and purchase property, for most, especially those new to the Egyptian real estate market, partnering with a reputable real estate company is safer and more efficient. It ensures protection against fraud and streamlines the transaction process.

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