One needs to read between the lines of Dave's post, I don't believe he is so naive as to mean that he would buy a property without a contract. But in Egypt a land contract is a very tricky thing, as a consequence of the parlous state of land registry, and the registration of title. It is incredibly difficult to obtain a statutory confirmation of ownership.

Therefore, if someone tells you he has the right to sell a property, he very well might have - but he has no way of proving it to you in the form of a title deed such as we know it in the UK, for example. Alternatively he might be a crook who has no right of ownership, or he might have right of ownership but still sell the same property several times. Caveat Emptor, indeed.

This having been said, there is a golden rule. Ask the seller if the contract can be registered at the Sharia Akari, which is basically a notary public, and the closest thing there is to a land registry. IF he offers you his own purchase contract as evidence of title, ask him to register it at Sharia Akari himself before you even negotiate with him. Once registered, you have far greater legal protection, specially if you go ahead and register your subsequent contract also.

Sellers, particularly private sellers, have historically resisted registration, because of the associated high fees (historically 6% or more). There is however no excuse for a corporate seller not to be able to show you registration of contract. And in the case of corporate AND private sellers, the registration fee has been slashed to almost nothing in recent times: so there is no excuse there either.

Where private sellers are concerned, you will find a massive number of sellers are operating on a "tawkil" or power of attorney from the real owner - or maybe it isn't the real owner. You can never know. Or maybe the tawkil is old and has been revoked, how would you know?

Inheritance is a curse in Egypt. As a consequence virtually all inheritances, particularly of land, are in some way or another contested. You can buy in good faith from someone who believes in good faith that they own the asset - but then a court judgment 10 year down the road can vitiate the entire transaction - or at the very least make your life a misery.

The answer to all this is the Sharia Akari. These offices are chaotic places, and their filing systems consist of piles of ledgers on the floor. BUT - they do exist to protect your rights, and generally speaking they are quite stern in their execution of that task. You WILL need a "Mr Fix-it" to guide you through the process, but the few hundred EGP he will cost you, might save you hundreds of thousands.

I am an Englishman who has been living in Egypt for 16 years, and I have bought three properties so far, including a parcel of land on which I have constructed from scratch. The experience has been painful at times, but by following the guidelines I have given, I am extremely comfortable and secure in my evidence of title.

Welcome to the forum and it is so nice to have such a well thought out, unbiased view of an issue that concerns so many people. Thankyou...

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PROPERTY SHOP INC. International Property Brokers
EGYPT REAL - Your One Stop Shop for Hurghada Property

Hi mtdd,

Welcome to the forum and thankyou for the info you have provided so far.

NO WAY.

I am trying to say that, regradless of country, or the type of "contract" whenever anyone feels that a written contract is needed there is an implied level of mistrust, otherwise why make it legally binding.
I do not need to a written contract with a member of my family but I probably will with anyone else, if the potential risk of being misunderstood is high, or the potential loss is more than I would wish to carry if the verbal contract is not completed. This is simple common sense in OUR WORLD, it is not the case in other countries.
I suspect that most contracts in Egypt are still only verbal which may have something to do with the different views on the way the legal system is used.

For something as significant as buying a property, which NEEDS the legal system to be involved there is no choice.

My point about TRUST, is all about the confidence that you have, as a buyer, that the terms of the written contract will actually be complied with.
This works both ways since there are obligatons on the buyer, for example to make payments by set dates.

My comments have nothing to do with being a developer, they are simple COMMON SENSE.

I do not expect my owners to simply HOPE that I observe the contract, I expect them to make a personal judgement abot me as the person with whom they ae dealing. This is also a two way street and is the best way to a successful relationship.

There can be problems on one side or the other however ONLY as a last resort, after a disagreent should you need to go to court, where in many cases there is much time and expense with little reward.

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Peter

This is RUBBISH - why are you placing such a stupid spin on this issue.

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Does anybody really know the way it works in Egypt?.
I think until the waters are tested regarding contractual issues no one except the Egyptian people will really know.
If a case is ever taken to court we will either be very happy in the knowledge that we are safe or we will begin to worry without cause.