Things to Beware of When You Buy Properties in Egypt

Buying properties in Egypt is something people did not imagined in their wildest dreams until recently. With sporadic outburst of terrorism going on for several years in Egypt, you will simply not think of going anywhere near Egypt leave alone buying property.  But the government had taken up the issue with strong hands and the days of terrorism are a faded memory now. The tourism industry that took a beating at that time has now gained its foothold and booming once again. Not withstanding the above the government of Egypt is now trying to do all it can to encourage foreigners to buy property in Egypt.

Egypt is unique as a tourist destination. The incredible Nile flows through it and timeless monument like Luxor and the Pyramids are all here. To welcome the visitors resorts like Sharm-el-Sheikh and Alexandria are awaiting for the tourists.

Since the overseas property market in Egypt is in its nascent stage it will be easy for an investor to make a kill before the prices spiral upwards. Buying a property in a 7,000 years old history will certainly will be different. Experts opine that the property market in Egypt is well worth at this stage when the prices are reasonable and potential for renting is very high.

In the event you have decided to purchase a property in Egypt, you should ensure the following:

• Ensure the condition of the structure that might be present on the property. There is no set standard for construction in Egypt, and if there is, no one seems to bother about it. Therefore it will be a not be prudent to put your money into something that you are not sure about. Hire a European structural engineer who will inspect the structure and certify accordingly. If there are flaws in the structure, you can either look elsewhere or use it as a bargaining point.
• Next comes the ownership of the property.  Find out the status of registration of the property. The owner should show you the original title papers, do not accept copies. If you don’t check the title properly you might end up not owning the property at the end of the deal. The registration cost was higher previously, but to encourage foreign investment it has been brought down to three percent of the purchase price.
• Check whether there is any mortgage on the property. By Egyptian law, mortgage is recorded against the property and not in the name of a person. If you fail to clear this doubt, you might find that the property is mortgaged to a third party. You can find this out from the local Notary Public’s office through the official Pledge Register.
• After all these researches have been done, the next thing is the purchase process. First a Sale and Purchase agreement between the buyer and the seller has to be executed. Make sure all the legal clauses have been included in the agreement. Go through the agreement very carefully otherwise there might be something missing that might pose problem for you at a later stage. After the private agreement has been executed; you have to approach the Real Estate Department and the Notary Public to complete the purchase by registering the title in your name. You have to pay a three percent registration fee for it. The process of registration will then take three to six months to complete.

Initially the process might seem confusing, but at the end of it with a clear title you are going to sit on a beautiful property and whatever you went through were worth it.