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Article by: alrivera.real.estate@gmail.com (Mr Radi Namer) Published: 10/10/2009

The developers of the majority of developments that i represent will be able to recommend a local lawyer to you in order to assist you in the buying process. However, in order to ensure that you receive totally independent and unbiased advice, i strongly recommend that you hire a lawyer of your own

In order to purchase property in Egypt , you need to obtain a residence visa. This is something that is a formality for your lawyer to arrange, even if you are not planning on spending much time in the country and will be issued for a period of three or five years.

One other advantage of using a lawyer is that, by giving them ‘Power of Attorney', they will be able to sign legal documents on your behalf. This can offset some of the costs if it means your having to make one less trip to Egypt in order to complete the buying process.

If you do decide to employ the services of a lawyer, reckon on paying around EUR500-600 to them to take you through the entire buying process.

If you're buying an off-plan property which will be completed at some point in the future, the developer will usually require you to sign a reservation agreement and pay a small reservation deposit. This may or may not be refundable depending upon the developer in question, so be sure to check the situation first.

The main document involved with the purchase, however, is an initial sales and purchase contract that will be drawn up by the developer. This is a formal, legally-binding contract which contains all of the key information about the agreed deal including the details of the property, the total amount payable, the deposit, penalty clauses, etc.

Once the contract is signed, the buyer will need to pay the deposit, usually within a month of signing the contract. The amount of the deposit differs from one development to another, but is usually in the region of 30-50%.

The balance of the funds is usually payable in stages between signing of the contract and handover of the property once it is finished. Again, actual terms vary from developer to developer.

Once the property is complete, your lawyer needs to arrange that ownership of the property is transferred into your name.

To complete the purchase, the buyer of the property needs to pay (equivalent to Stamp Duty). This used to be equal to 3% of the property's value, but is now a fixed sum, which varies according to the location of your property. The maximum amount that this will cost is currently EGP2000 (GBP180/EUR260). You will also need to pay a small inspection and measurement fee, of approximately GBP50/EUR65.

You have two options as to how you finalize the deal. One option is to get your lawyer to register you as the owner of the property at the Land Registration Office. The problem with arranging it this way, however, is that foreigners are allowed to buy a maximum of two properties in Egypt, with a maximum of 4000m2 of floorspace between them. They are also not allowed to sell property in a period of under five years from buying. This could be a problem if you are looking to 'flip' the property for a quick profit after a relatively short period of time.

The way to get around these restrictions is to register your ownership with a notary, which costs around EGP2000 (GBP180/EUR260). This confirms your ownership of the property, but it does not add your name to the Land Registry, which means that you are free to buy as many properties as you like and you can also sell your property at any time you would like. As a result, this option is probably going to be the better of the two.

 

External Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=243

Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=243

Please contact the author at alrivera.real.estate@gmail.com for more information.

 

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