You must be aware of many issues when buying a property in Hurghada by the Red Sea in Egypt.
• First you should make sure that the property is free and clear of any liens or any legal issues.
• Second you should confirm that the seller is authorized to sell the property and has permission from the government and there are no tax or government liens.
• Third you should check with governmental offices to make sure that you will be able to register this property in your name as a NON-Egyptian.
• Fourth you must be certain and sure that the property is in compliance with the building licenses and there is a certified electric and water meters.
• Fifth you must collect the necessary documentation such as “power of attorney” from the current seller and any other persons named in the registry office and building licenses. These documents are the only way to prove ownership and protect your investment.
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Many non-Egyptians are mis-informed, and therefore confuse two different issues with regard to apartment Registration.
For example many non-Egyptians are led to believe that “SIGNATURE VERIFICATION” is an effective court legal procedure that registers the property, however this may not give owners the protection that they need and want. “SIGNATURE VERIFICATION” is a legal procedure where the attorney petitions the court for an evidentiary hearing under Evidentiary procedures and laws, to prove that the signature of a subject did occur. The attorney doesn’t address the contents or issues in the agreement or contract. This procedure only involves validating a subject’s signature and doesn’t not address the property transfer, integrity of the contract or even the validity of a contract or legal agreement. The court order states that the “Signature has been verified”. In other words, it maybe useful to prove identity and to avoid any identity theft claims; but it doesn’t verify the contract.
Therefore, “SIGNATURE VERIFICATION” procedure doesn’t in any way shape or form constitute the Registration process. The only way to prove true ownership of a property in Egypt, beyond reasonable doubt, is through the registration process.
For example: In a fraud case where an apartment was sold twice to two different buyers: The buyer who files for a “SIGNATURE VERIFICATION” case doesn’t have the right to occupy the property; however, the buyer who registers the property first becomes the true owner and is awarded the possession and control of the property.
Therefore, it is imperative to protect your investment and rights by registering the property in your name through the registration process. The laws in Egypt are complicated and continually change regarding real estate and NON-Egyptians who are buying real estate. Another concern is that there is currently a law awaiting introduction that may prohibit any NON-Egyptians from owning land in Egypt.
The other issue regarding POA is also not advisable for the owner of the building to issue because issuing of a POA (Power of attorney) only gives another person (does not have to be the real owner) limited permission to be able to complete specific tasks. However, issuing the POA to a law firm and permission from the owner to register the flats on behalf of the apartment owners is a necessity to complete the registration process without incidents, delay or hassles. Basically the same way that Orascom in El Gouna does business.
The final issue regarding the myth that if you register your property than you can’t sell it for 5 years. is not true and incorrect. You can sell your property, however the new buyer can’t register the flat for 5 years. In my opinion along with a legal opinion obtained from experienced attorneys in Egypt: “It is much better to buy a flat that is registered because you only have to deal with one person who is the owner. A non-registered flat may rise several questions regarding ownerships and other issues.” In other words, How do we know that there is no disputes or law suits between the building owner and the seller?
There are other few issues as well that we can also assist with during your transactions.
Blue Systems has perfect reputation and never had any disputes with any clients. All of our clients are foreigners and appreciate our service.
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