LEGAL: Queations and Answers by an Egyptian lawyer - Page 8

Zeiad Yehia · #71 07-05-2008, 11:25 AM

Quote:

Originally Posted by not_terry

Hi
tnx for offering to act on my behalf for purchase of apartment. I am looking at several first few weeks when I arrive in Egypt on 22nd may. I hope to use your services for the purchase.

I believe my first job will be to go to El Tur and get my visa extended then grant you POA. Is this something you assist with, do I need any details from you, do you need to contact them in advance. Some lawyers said this visit and service is included in the legal fees, do your fees include this. If not do you know anyone can come with me to make sure things go smoothly. Please advise so I can get things moving. Many thanks again for your assistance. Look forward to meeting with you and working with you.

Kind regards

Kerry

Dear Kerry,

You are welcome of course, but I am positive I did not offer to act on your behalf on the purchase! I can't remember our previous talk, but I am quite sure it was one of 2 things. But anyway I have to emphasize that I do not mean that you are not welcome, because you are really welcome. Point is that I never initiate offering my services:

A) I gave you legal guidance, and by that be sure that I am not offering my services.

B) You asked me to act on your behalf in a private message or email and I accepted.

In all cases you are welcome, really, but I was just making a small point.

Now when it comes to your arrival, please make sure you obtain the multi-entry visa; he one that costs GBP 10 and not the free one. Then you will go to El Tur easily, and in the event you want you use my services I would be pleased no doubt, but then please take it to PM or email in order to get the detailed instructions.

All the best,

Zeiad Yehia
Solicitor

Zeiad Yehia · #72 07-05-2008, 11:48 AM

[quote=annethedonn;47130]

Quote:

Originally Posted by Zeiad Yehia

Dear All,

Legal Procedures to Purchase a Property in Sharm el Sheikh

purchasers are required to issue a power of attorney to their lawyer, in order to be able to act on their behalf in courts. Power of attorney, however, requires the purchaser "Principal" to obtain a multi-entry visa from El Tur city, which is located not far from Sharm el Sheikh, and where all the governmental utilities for Sharm el Sheikh's area are located. After obtaining the power of attorney from the notary office, the lawyer is responsible for establishing the signature validity legal suit. This legal suit takes between 6-8 months before obtaining the final verdict from the court.

.

Zeiad Yehia
Head of Legal Department
City and Urban International
Gendy Mall, King of Bahrain St., 2nd Floor,
Neama Bay, Sharm el Sheikh,
South Sinai, Egypt.
Telephone: +20 69 3601515
Fax: +20 69 3601520
Cellular: +20 12 3344988
email: /QUOTE

hi

me & my husband <who is egyptian but sudanese nationality due to his father> purchased a property in nabq bay & went with our lawyer who we gave power of attorney to, to get a visa from el tur. they said this was valid for one year. however on leaving at the airport 2 days later they told us it expires on leaving egypt & we won't be able to use it for multiple entry which I found outrageous. <I had a 3 month visa for egpyt & they told me also to buy a temp visa on arrival & eventually i they decided I dudnt need that!!> so i'm still unsure if my residency visa is valid. any advice wd be useful pls.

anne

VERY GOOD QUESTION!

I understand your situation. Point is, when you go to El Tur to make a one year residency visa, make sure it is inclusive of the "return" option; this return should take place within 6 months. However if you optained just visa, chances are you'd be in that situation you just described as long as you have left Egypt. Kindly make sure next time that the "return" option is included in your residency visa.

All the best,

Zeiad Yehia
Solicitor

Zeiad Yehia · #73 07-05-2008, 11:53 AM

Quote:

Originally Posted by Rytcher

Hi Ziead,

I'm a lawyer too although working in the internal audit. And have a silly wuestion. As I forund out I will need to have some "special" type visa to be able to sign legal papers in Egypt (I'm buying in Hurghada) and the stamps that are usually provided in the airport are not enough. As I ubderstand it is not a problem to get this visa in any Egypt embassy. Could you please advise me on the type of the visa that is required. I know that it could be obtained locally in few hours, but I just like to get everything done in advance.

Regards,

Konstantin

Dear Konstantin,

You are welcome twice; once for being a forum member and another for being a fellow lawyer. :-)

Please get informed that the visa you need is "One Year Residency Visa."

Make sure when you get your visa that it includes the "return within 6 months" option.

Please note that you can get your PoA done in your home country with no need for the residency visa unless you need it for other purposes. For more information please check the posts above.

All the best,

Zeiad Yehia
Solicitor

Zeiad Yehia · #74 07-05-2008, 11:54 AM

Quote:

Originally Posted by M Butler

Thanks for the information. We are moving from Cairo to El Gouna as my husbands contract is finishing this month and we don't want to leave your wonderful country. Sound as though Sharm has everything covered but I am sure a lot of the advice given applies to anywhere in Egypt.
However, I will now have to spend more time on my computer to read all the information on this website!!!

Thanks again,
Margaret

Dear Margaret,

I confirm that the same rules apply every where "except for usufruct vs. freehold but this is another story", and I am truly glad you find the website useful and informative. :-)

Best luck,

Zeiad Yehia
Solicitor

Zeiad Yehia · #75 07-05-2008, 04:48 PM

Quote:

Originally Posted by Magnee

Dear Mr.Ziead

I just went back home from Hurghada and i heared about that there is a problem in teh documents with Rivera beach resort but on this forum that you are dealing with this paper and ther is a legal problem in the contracts
kindly from you to know if there is any legal problem or i can go a head to buy
thank you in advance Mr Zeiad

Dear Sir,

I personally am not aware of the due diligence situation of this compound, as it has not been subject to my check. I believe you have had mixed information since I was there to check another project and unfortunately its papers were completely invalid, but when it comes to Riviera I apologize for not being able to answer. However I got a phone call this week from an Egyptian broker in Hurgada for the same purpose, and I told him exactly what I am telling you now as my answer is not likely to change when there's nothing new to add.

All the best,

Zeiad Yehia
Solicitor

Jeremy Sturgess · #76 08-05-2008, 10:21 AM

I have attached for everyones interest the 1996 law on foreign ownership in egypt and the 2005 prime ministerial decree which updates the law for foreigners.

Happy reading. At least its in English

Jeremy Sturgess · #77 08-05-2008, 10:42 AM

Quote:

Originally Posted by Jeremy Sturgess

My interpretation of the 2005 decree is that if your property falls into one of the toursistic areas identified such as red sea or hurghada then there is no longer any requirement to hold your property for 5 years after registration.

However there would still appear to be a restriction under the 1996 law of a max 2 units that a foreigner can own. I assume this is 2 units after registration otherwise how would the autorities know that you have more than 2 units.

Many investors buy more than 2 units but do not register them and expect to sell them before registration (or keep them and never register them as its not compulsory to register at present) which seems the sensible thing to do.

It must be a possibility that at some point registration will become compulsory. This will be important if the mortgage market is to develop properly. I would expect that logically if they make registration compulsory at some point it is likely they will also review the limit on the number of units a foreigner may own.

I would point out I am NOT a lawyer and these are my personal interpretations and thoughts. Please DO NOT rely on them. A lawyer lke Zaied should always be consulted and no doubt he will correct any errors in my analysis above

On re reading the 2005 decree Article 1 I may have been mistaken in saying that the limit of two units applys in these identified touristic areas.

Article 1 states that the law for foreigners shall be the same for egyptians and thus if the law allows egyptians to own more than 2 units then this clause could be interpreted as removing the limit of 2 units for foreigners. It also says that there needs to be approval of the "concerned entities". I dont know which concerned entities this clause is referring to but I assume Zaied can elaborate.

It would be great to understand definitely if the limit of 2 units and 5 years still applys to the touristic areas identified in the 2005 decree or not.

Jeremy Sturgess · #78 08-05-2008, 10:47 AM

It would be very helpful if someone could post an official map (if one exists) showing the boundaries of the touristic areas identified in the 2005 decree .In this way buyers could easily identify if there proposed purchase fell into one of these areas and was thus governed by the 2005 decree

Jeremy Sturgess · #79 08-05-2008, 03:15 PM

I have attached english translations of these laws which govern the rules on foreigners owning property in egypt.

Zeiad Yehia · #80 08-05-2008, 03:33 PM

Quote:

Originally Posted by Jeremy Sturgess

It would be very helpful if someone could post an official map (if one exists) showing the boundaries of the touristic areas identified in the 2005 decree .In this way buyers could easily identify if there proposed purchase fell into one of these areas and was thus governed by the 2005 decree

Dear Jeremy,

First of all I passed by your office in El Gouna, wanted to say hi and have a chat about the contracts. It was my first time there and I admit that I loved the place. Yes it is a little bit poshy but seriously a fabulous place for relaxation.

Well, when it comes to the decree of April 2005, it was speaking about USUFRUCT "which is not FREEHOLD", in certain area which is Sharm el Sheikh, subsequently usufructuaries can be granted more than 2 units and bigger areas than the law of 1996, since the subject is difference and there is no restriction on the usufruct subject.

When it comes to the "entitled entities" point, it is the responsibility of the developer "not the client" to work under the aforementioned stipulations.

Please note that the decree of April 2005 did not touch on the foregoing restriction "number of units and areas" at all, but it just restricted the freehold right for foreigners within the territory of Sharm el Sheikh (Article Number 3).

All the best,

Zeiad Yehia
Solicitor