Property Law: What You Need to Know Before Buying or Selling a Property
Buying or selling a property is one of the most critical decisions. It involves a lot of legal and financial aspects that you need to be aware of before you sign any contract. In this blog post, we will give you some basic information about the property laws and regulations in Egypt and how they affect your rights and obligations as a buyer or a seller.
The Civil Code and the Notary Public Law
The primary sources of law that regulate the ownership and transfer of property in Egypt are the Civil Code and the Notary Public Law. The Civil Code defines the types of property rights, such as ownership, usufruct, easement, mortgage, etc., and the conditions and procedures for acquiring and disposing of them. The Notary Public Law stipulates that any sale or transfer of property must be registered at the offices of the Notary Public to be valid and effective.
According to these laws, property registration is mandatory and essential for proving ownership rights. If you buy or sell a property without registering it, you will only have a personal contractual right over the property, which is not enforceable against third parties. Moreover, you will be liable for paying fines and penalties for violating the law.
Therefore, before you buy or sell a property, you should always check its registration status and make sure that it has a clear title deed that shows its history, boundaries, area, and ownership. It would be best to verify that the property is free from any encumbrances, such as mortgages, liens, taxes, etc., that may affect your rights or obligations.
The Foreign Ownership Law
Property for sale in Hurghada
If you are a foreigner who wants to buy or sell a property in Egypt, you should also be aware of the Foreign Ownership Law, which imposes some restrictions and limitations on your rights. The Foreign Ownership Law consists of Law No. 15 of 1963, Law No. 143 of 1981, and Law No. 230 of 1996.
Law No. 15 prohibits foreigners from acquiring agricultural land in Egypt. Law No. 143 governs the acquisition and ownership of desert land by foreigners. It requires foreigners to obtain prior approval from the competent authorities before buying or selling desert land. It also limits foreigners’ desert land to 4 feddans (about 1.68 hectares) per person or entity.
Property for sale in Egypt
Law No. 230 regulates foreigners’ acquisition and ownership of residential and commercial properties. It allows foreigners to own up to two properties in Egypt for personal use only, provided that they do not exceed a total area of 4,000 square meters. It also requires foreigners to obtain prior approval from the Prime Minister before buying or selling any property in Egypt.
In addition, the Foreign Ownership Law stipulates that foreigners cannot dispose of their properties within five years from the date of acquisition unless they obtain special permission from the Prime Minister. It also grants the Egyptian government the right to confiscate any property owned by foreigners for public interest reasons, subject to fair compensation.
Buying or selling a property in Egypt can be complex and challenging, requiring careful planning and preparation. You need to be familiar with the property laws and regulations in Egypt and how they affect your rights and obligations as a buyer or a seller. You also need to consult with a qualified lawyer who can advise you on the legal aspects of your transaction and help you avoid any potential risks or disputes.
If you have any questions or comments about this blog post, please contact us at [email@example.com]. We are always happy to hear from you and assist you with your real estate needs.