Can developers sell units before getting a building permit?
No. According to Egyptian Consumer Protection Law, developers are strictly forbidden from advertising or selling units before obtaining official building permits. Buying without a permit is a huge risk because the building might never be finished, or it could be built illegally and later demolished by the government.
Which official documents should I check before signing?
You must verify the “Chain of Ownership” by reviewing
- The Land Title: Is the land registered in the Real Estate Registry (Shahr El-Akary) or allocated by a City Authority?
- Allocation Decree: To ensure the land is for residential use, not commercial or industrial.
- Building Permit: Check the permit number and date. Make sure your floor is included in the approved number of floors.
- Payment Certificate: Proof that the developer has paid all installments for the land to the government.
How do I guarantee the delivery date?
The contract is your primary protection. You must include a specific delivery date (Day/Month/Year).
- Penalty Clause: Add a clear financial penalty that the developer must pay for every month of delay.
- Refund Clause: You should have the right to cancel the contract and get all your money back (plus interest) if the delay exceeds a certain period (e.g., 6 months).
Are maintenance fees legal?
Most developers ask for a “Maintenance Deposit” (usually 5% to 10% of the unit price).
- Legally: The contract should state that this money goes into a separate bank account, and owners have the right to see how it is spent.
- Warning: Avoid contracts that ask for “unlimited” annual fees without explaining exactly what services you are paying for.
What is the legal gap in “Preliminary Sales Contracts”?
A preliminary contract does not officially transfer ownership in the eyes of the state; it only proves the agreement between you and the seller. To fix this
- The contract must require the seller to attend the Real Estate Registry or court to confirm the sale.
- Pro Tip: Start a “Validity and Enforceability” lawsuit (Saha wa Nafaz) immediately after receiving the unit to officially register your ownership.
Golden Rule
Always visit the site in person and ask the local City Authority about the building’s legal status. This simple step can save you from years of trouble in court.