Is a company’s good reputation enough to start paying?
No. While a good reputation is reassuring, it is not a legal document. Do not pay any money—even a reservation fee—before seeing the Site Validity Statement and the Allocation Decree.
- Verify Ownership: Ensure the land is officially registered in the company’s name or permanently allocated to them by the state.
- The Building Permit: Never buy based on a “model” or “3D design” alone. Buying without official papers is a major risk that the law cannot fully protect.
What if the developer says the contract cannot be changed?
In Egyptian law, vague phrases like “soon” or “within years” mean nothing. A professional contract must include a specific Timeline (Day/Month/Year).
Penalty Clause: If the developer refuses to add a specific date, they may not be serious about the schedule. Ensure there is a penalty fee (equal to a monthly rent or a percentage of the unit price) paid to you if they are late.
Is signing the contract at the company office enough?
Definitely not. This is only a “Preliminary Contract.” To prevent the unit from being sold to someone else and to prove your ownership to the state
- The contract must oblige the developer to attend court for a “Signature Validation” (Saha Tawqee) or go to the Real Estate Registry to transfer ownership.
- Check for Debts: You must request a “Real Estate Actions Certificate” (Shahadat Tasarofat) to ensure the land isn’t mortgaged to a bank. If the developer took a loan against the land and fails to pay, the bank could legally seize your apartment.
How do I handle maintenance fees?
This is a common trap. The contract should state that the “Maintenance Deposit” is a fixed, one-time payment placed in a bank account. The interest from this account should cover the building’s services.
Avoid Hidden Costs: Reject any clause that allows the company to charge “unspecified annual increases” or “administrative fees.” The contract should clearly list what is covered, such as security, cleaning, and elevators.
Can the developer take a percentage if I sell the unit later?
According to the Egyptian Consumer Protection Law, developers are forbidden from charging “transfer fees” or taking a percentage of your profit when you resell your unit.
Hidden Clauses: Some companies still try to hide these fees in the contract. Always ensure your contract does not give the developer the “right to refuse” the sale or demand “exit fees.” It is your investment, and you should keep all the profit.
Final Advice: Real estate investment in Egypt is very strong, but “the devil is in the details.” Never sign a contract without a lawyer reading between the lines. At Cairo Lawyer, we don’t just protect your money; we protect your legal future.