Uncover Egypt - Buying & renting property in Egypt or booking a hotel in Sharm El Sheikh or Luxor in Egypt - Help moving to Egypt
- Property Available in Egypt
- Safaga
- Sharm El Sheikh
- Sahl Hasheesh
- Hurghada
- Marsa Alam
- Dahab
- Luxor
Affordable property in Egypt.
Egypt is perfect for short term holiday
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Egyptian Property Law - Buying Property in Egypt
Purchasing
In general when buying property in Egypt from a new development, prices are set and there is little room for negotiation. Re-sale properties sometimes offer opportunity for negotiation. Payment terms vary. Cash buyers usually benefit from a discount of around 10% or long- term credit arrangements often at 0% interest over 3 or 4 years are possible.
Mortgages are still not available from the UK banks, there is a proposed introduction of mortgage’s (subject to status) on property purchases in Egypt from UK banks HSBC and Barclays Bank from the end of 2008 which would give yet more incentives for foreigners to purchase property in Egypt. Some Middle Eastern banks are now offering mortgages (subject to status) of 60% over 15years with interest rates of 7-8%. This only applies on freehold property. Contact us for more details
Purchasers must be aware of the extra cost of the “buyers commission” when purchasing in some areas of Egypt. This is a fee which is charged to the purchaser by the agent handling the transaction of sale. This fee is usually 1.5% of the price of the property. In other areas of Egypt the “buyers commission” is between 4% and 5% of the value of the property but does include some of the lawyers fees. Uncover Egypt does not operate this commission.
Get a Lawyer in Egypt
Instructing a good lawyer is essential; we are able to assist you with this. The property must be checked against loans, debts and disputes. The correct signatures and all relevant powers of attorney from the seller should be verified by the lawyer in Egypt.
Arabic and English Contracts
All contracts should be in both Arabic and English and should be translated to ensure the Arabic matches the English. Uncover Egypt can recommend professional translators. A deposit is usually required at the stage the lawyers get involved. The size of the deposit does vary. Uncover Egypt will ensure that you pay only the minimum requirement. The deeds to your property in Egypt are assigned to you at the land registry office and the cost of registering a property as a foreigner is 2000,00 EGP (As of June 2008)
Freehold/Leasehold
Purchasing a property in Sharm el Sheikh is different than purchasing a property in any other location in Egypt, this is because of the difference in legal status. An administrative decree was issued by the prime minister of Egypt in 2005, abrogating the context of the previous law issued in 1996. Despite the fact that an administrative decree is normally unable to nullify law, this decree is currently the prevalent decree governing the foreigners’ legal status when it comes to purchasing a property in Sharm el Sheikh.
The aforementioned decree states that foreigner purchasers in Sharm el Sheikh may not be granted the right to be "landlords" on the properties they purchase, but to only have the "Freehold" right, for the maximum time of 99 years.
Normally the term "Freehold" applies to the right to enjoy a property and all its advantages for good, and the right of disposal, either physical or legal disposal, however the decree has stated the maximum limit of freehold as 99 years, therefore - legally talking - it is NOT freehold, and it is therefore why it is rephrased to "Usufruct".
In other areas of Egypt it is still possible to buy freehold properties.
Apply for Residency in Egypt
You must also apply for residency in Egypt at this time as it is a requirement of the Egyptian government that owners of property in Egypt must have residency. Uncover Egypt will assist you with this process