Quote:
Originally Posted by Zeiad Yehia
I read that letter well, and read it more than once. The lawyer can be right just in one case, which is if this project has obtained the aritten approval for exemption from the prime minister, and if this is the case, then you might ask to see and investigate this written approval. Otherwise the legal content of this letter would be misleading.
I'm writing below the EXACT PHRASING of the law governing real estate purchses in Egypt "FREEHOLD":
Law No. 230 of 1996
On July 14, Law No. 230 of 1996 was issued superseding Law No. 56 of 1988. The new law allows non-Egyptians to own real estate whether built or vacant with the following conditions:
1. That ownership be limited to only two real estate properties throughout Egypt for accommodation purposes of the person and his family (family meaning spouses and minors), in addition to the right to own real estate needed for activities licensed by the Egyptian Government.
2. That the area of each real estate not be in excess of four thousand square meters.
3. That the real estate is not a historical site.
Exemption from first and second conditions is subject to the approval of the Prime Minister. Ownership in tourist areas and new communities is subject to conditions established by the Cabinet of Ministers.
Furthermore, non-Egyptians owning vacant real estate in Egypt must build within a period of five years from the date their ownership is effective (the date on which the realty is recorded at the competent Notary Public Office). Non-Egyptians may only sell their real estate five years after registration of ownership, unless the consent of the Prime Minister is obtained.
Again, if this approval was obtained then they're saying the truth, but the right step now is to check for the existance of such an approval before giving a final opinion on the content.
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Zeiad,
Can you please answer a couple of questions for me?
We have been living in Maadi, Cairo for 2 years in an apartment that has come up for sale. We have been talking to the owner (who built the
apartment block) about buying it from him. Apparently he still owns the building and is about to register all the apartments in the next six months. He has long since sold all the apartments, except the one that we are at present renting from him and the underground garage of which he intends to retain ownership .
We are aware that if we do buy, then we cannot sell the property within 5 years (if registered). What could the repercussions be if we did not register it and then decided to sell?
We thought that we might buy this apartment and rent it out long term to generate some income. However, I have read an article that states that if you are a foreigner, you cannot rent the property for 5 years also (if registered). Apart from not registering the property, is there any way round this?
Thanks in advance for your help,
Margaret